KUALA LUMPUR (Jan 27): Malaysian authorities are investigating an international law firm suspected of involvement in the misappropriation of funds linked to 1Malaysia Development Bhd (1MDB).
The investigation is being carried out under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said in a written parliamentary reply.
The Malaysian Anti-Corruption Commission (MACC) is investigating the UK branch of the law firm, Azalina said. However, she declined to reveal further details due to statutory restrictions.
Azalina was responding to Kepong Member of Parliament Lim Lip Eng, who had sought disclosure of the names of international law firms linked to the misappropriation of 1MDB funds, the sums involved, whether any local law or accounting firms were implicated, and whether action would be taken against political parties that received 1MDB-related funds through other channels.
On Dec 18, national news agency Bernama cited an unidentified MACC source as saying that the commission had intensified its investigation into an international law firm suspected of facilitating financial transactions involving illicit proceeds from 1MDB.
Bernama reported that the firm is believed to have played a role in the misappropriation of around US$1 billion from 1MDB, including the transfer of about US$700 million to an offshore entity outside the fund’s control.
The MACC is also gathering information on a former 1MDB business development executive director believed to have links to funds suspected to have been misappropriated in connection with the case, the news agency reported the source as saying.
The investigation, according to the Bernama report, was initiated based on intelligence and information obtained through engagements with several countries, involving cross-border financial flows and the role of professional intermediaries in transactions related to 1MDB.
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