Malaysia's central bank said on Wednesday it would pursue administrative action against 1Malaysia Development Bhd. (1MDB), after the troubled state fund missed a deadline to submit documents on its finances abroad.
1MDB, whose advisory board is chaired by Malaysian Prime Minister Najib Razak, has been the subject of investigations over the last year by authorities in Malaysia, Switzerland and the United States following accusations of financial mismanagement and graft. 1MDB has denied the allegations.
Bank Negara Malaysia (BNM) governor Zeti Akhtar Aziz said the central bank had requested documents from 1MDB after it failed to comply with a directive, issued in August 2015, to repatriate a total of $1.8 billion from its accounts overseas.
But 1MDB informed the central bank in October that the finances had been earmarked for a restructuring program and to repay its foreign debts, and that they could not be repatriated, Zeti said.