Singapore's authority seizes account related with 1MDB

By Staff Writer

Feb 02, 2016 05:56 AM EST

The 1Malaysia Development Berhad scandal is still not out of the limelight even after the Malaysian Prime Minister, Najib Razak has been cleared of its allegation last week. After Swiss starts their investigation probe on the troubled fund, Singapore's authority announces that they have frozen a large number of bank accounts link with the state fund.

The latest event unfolds as the Commercial Affairs Department and Monetary Authority of Singapore found a possible money-laundering and other related offences carried out using the bank account. However, no details regarding the number of bank accounts seized by the authority have been released yet as it is part of the investigation done by them since June last year.

According to CNBC, the two agencies said in a joint statement that "In connection with these investigations, we have sought and are continuing to seek information from several financial institutions, are interviewing various individuals, and have seized a large number of bank accounts."

The investigation done by the authority is expected to be shared with other international teams including with Swiss, United States and Malaysian authority. The report is expected to help in their investigation respectively. Because of the Singapore's openness to foreign investment, the country has been the main destination for business in the region to invest in.

A spokesperson of 1MDB contacted by the media, on the other hand, told reporters that the firm has not been contacted by any foreign legal authority so far as reported by Channel News Asia. The firm also said that they will give full cooperation to any investigation on them and said that they have not done any offences.

The 1MDB said in a statement that "1MDB remains committed to fully cooperating with any lawful authority and investigation, subject to advise from the relevant domestic lawful authorities, and in accordance with international protocols governing such matters."

Just end of January this year, an investigation on 1MDB by the Switzerland authority revealed that a total of $4 billion funds supposedly for the social and economic development in Malaysia may have been misused. The New York Times reported that the fund was transferred into Swiss account from Malaysia and the accounts were owned by various former Malaysian and United Arab Emirates public officials.

The 1MDB was formed by Malaysian Prime Minister, Najib Razak back in 2009 to handle various investment by the state. The firm, however has been under lots of problems due to lots of misconduct allegation it is currently facing. 

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