AmBank Group Malaysia featured the 1MDB scandal has consented to pay a 2.83 billion ringgit ($699 million) settlement to the government.
AMMB Holdings Bhd will be paying the settlement for “all outstanding claims and actions concerning the AmBank Group’s involvement in the 1MDB matter,” Malaysia’s finance ministry said.
“While this will have a material impact on the current year’s profitability, there are adequate capital buffers to absorb this settlement without an immediate need to raise additional equity capital,” AMMB said in a statement.
Billion ringgits that were transferred through AmBank accounts were on former Malaysian Prime Minister Najib Razak’s name. Najib’s name was cleared by Malaysia’s Attorney General.
The 1Malaysia Development Berhad scandal is an ongoing political scandal occurring in Malaysia. In 2015, Malaysia’s then-Prime Minister Najib Razak was accused of channelling over RM 2.67 billion from 1Malaysia Development Berhad, a government-run strategic development company, to his personal bank accounts.
