Bank Negara: Our 1MDB probe concluded, but we'll continue to cooperate with others

KUALA LUMPUR: Bank Negara Malaysia (BNM) has concluded its investigation into issues related to 1Malaysia Development Bhd (1MDB) but will continue to cooperate with any other authorities that are conducting their own probes.
"Regulatory authorities will make their investigations based on the rules and regulations of the various jurisdictions. As far as we are concerned, I read yesterday that 1MDB paid their compound and, with that, that is the conclusion of our investigation within BNM's rules and regulations and the law that we administer.
"There are other laws administered by other authorities. We will continue to give our cooperation on this matter," governor Datuk Muhammad Ibrahim told reporters on the sidelines of the 20th Malaysian Banking Summit yesterday.
He was responding to questions on whether the central bank would reopen investigations into 1MDB or begin investigations on BSI Bank Ltd, following the closure of BSI Bank's branch in Singapore as instructed by the Monetary Authority of Singapore on Tuesday.
On the repatriation of US$1.83 billion by 1MDB as per BNM's instructions, Muhammad said: "The press conference was two weeks ago and I said reasonable time should be given. Two weeks is definitely not a reasonable time."
Meanwhile, BNM expects the financial technology (fintech) regulatory framework to be ready by July this year.
"We want to issue it by July this year so that the banking institution will have time to look into it and give us comments so that it will be effective when it comes to implementation," said Muhammad.
In his keynote address, he said fintech developments such as blockchain, artificial intelligence and biometric applications are expanding the frontiers of banking and therefore necessitate a re-think of the regulatory framework in addressing consumer protection and market conduct issues as well as the technological impact on the orderly functioning of financial markets.
BNM expects the framework to provide regulatory clarity for fintech start-ups, and for banks and consumers that use their services. It will also lower barriers to entry and accelerate the time-to-market for productive innovations.
Firms that operate within the framework are required to observe reasonable standards of service, transparency to customers, appropriate funding and reporting requirements, in order to facilitate an orderly process while protecting consumer interests and maintaining market confidence.
"Our aim is therefore to support fintech firms that go on to upscale their activities, and aid fintech firms to better anticipate and adjust to appropriate regulatory expectations," said Muhammad.
Commenting on the interest rate, he said BNM decided to maintain it at the current level, which it deems appropriate and conducive to growth.
"It is very important that the liquidity situation of the banking industry is at the level that will continue to give financing to the economy," he added.