Friday 29 Mar 2024
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(Feb 27): A group of 112 Malaysian non-governmental organizations (NGOs) has called on the Swiss government to return 95 million Swiss francs (RM400 million) seized during 1MDB investigations to the rightful owners — the people of Malaysia.

Financial website finews.com reported: "Following an investigation into corruption involving Malaysia’s state fund 1MDB, Swiss authorities have seized a large amount of money — and put it in its own coffers."

This money was said to have been seized from BSI Bank, Coutts & Co and Falcon Bank.

According to a report in Zürich-based Tages Anzeige, the Swiss government is allowed to recover illegally generated profits.

The news organisation also quoted Swiss Finance Minister Ueli Maurer as stating that the funds had already flowed into the Federal Treasury because there were no claimants, Malaysiakini reported.

Maurer had informed the Basel-based NGO Bruno Manser Fonds about this development. The NGO had also sought the return of the funds to Malaysia.

Malaysiakini also reported that on Jan 22, the Swiss Financial Market Supervisory Authority (Finma) had informed the Malaysian NGOs that the confiscated profits are with the Swiss treasury.

Finma said only the persons "directly damaged" by the action of the Swiss financial intermediaries are able to seek restitution of the funds through the courts.

"When Finma took its decision to confiscate the profits of several Swiss banks, which they made through providing services to 1MDB or related companies and persons, no such judicial decisions or recognised claims existed.

"Accordingly, without prejudice to the criminal confiscation, those profits were allocated to the Swiss Confederation. Appeal proceedings against Finma's decision are still pending before the Federal Administrative Court," said Finma CEO Mark Branson.

Finews.com reported that some Swiss lawmakers have voiced their opposition to the Swiss government’s action. Socialist MP Carlo Sommaruga filed a motion demanding the return of at least part of the money seized in international corruption cases to the people of the countries where the money originally came from. His motion was supported by 26 fellow MPs.

The Lower House of Parliament will look into the motion in March.

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