KUALA LUMPUR (Feb 10): Mayu Global Group Bhd (KL:MAYU) said its unit has been compounded by the Royal Malaysia Police for RM24 million for an undisclosed offence.

The compound was made under Section 92(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, after the police concluded their investigation into the group’s 80%-owned unit Sunrise Manner Sdn Bhd, according to a bourse filing on Wednesday (Feb 11).

The nature of the offence was not disclosed in the filing. Previously, Mayu Global said the probe was framed under Section 4(1) of AMLA — the offence of money laundering.

“... The compound was settled as an administrative regulatory resolution in lieu of prosecution or court proceedings and does not constitute any admission of guilt, liability or wrongdoing,” Mayu Global said.

“No court proceedings were commenced and no finding of guilt or wrongdoing has been made against the group or its directors,” it added.

The police’s probe into the unit dates back to April last year.

Over the course of the investigation, Mayu Global saw its then executive director Tan Kim Hee detained, though he was later released without charge.  Tan, who is a major shareholder of the group with an 11.095% stake, was later designated as a non-executive director.

The compound is to be paid in two settlements, RM10 million on Jan 26 and RM14 million by March 31, the group noted.

It said the settlement is not expected to have any material impact on the group.

Other investigative actions at the time included bank account freezes and motor vehicle seizures. Both the accounts and the vehicles have since been released.

Shares in Mayu Global were untraded on Wednesday. The counter was last traded on Feb 5, when it closed at 12 sen, valuing the group at RM57.9 million.