This article first appeared in The Edge Financial Daily on March 15, 2018

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) insists it has not lost any money, saying the 104 million Swiss francs (RM430 million) currently held by the Swiss Federal Treasury is actually a fine by the Swiss Financial Markets Authority (Finma) against certain banks and cannot be claimed.

In a statement yesterday, the fund said the sum represents the amount ordered as disgorgement of profit by Finma against certain banks for alleged breach of Swiss laws.

“According to the Swiss Finance Minister Ueli Maurer, the relevant banks have disputed the actions of Finma and are appealing the actions in the Federal Administration Court.

“Thus, the 104 million francs is being claimed by relevant banks. It cannot be claimed by 1MDB or the government of Malaysia as the money does not belong to 1MDB,” said 1MDB.

The fund noted that Finma itself had stated only those “directly damaged” by the alleged actions of financial intermediaries in Switzerland are able to claim a share of any fines, after going through a legal process.

“1MDB had previously stated and reiterates that it has not lost any money, and that all its monies are fully accounted for,” it added.

The statement was issued in response to a letter written by opposition leader Datuk Seri Dr Wan Azizah Wan Ismail and veteran parliamentarian Lim Kit Siang to Swiss lawmakers to consider the repatriation of the funds.

The lawmakers are set to debate a motion — entitled “Repatriation of Corruption Funds to the Robbed Populations” — that has been submitted to the National Council (lower house) of the Swiss Federal Assembly.

1MDB said the motion, submitted on June 16 last year by Swiss lawmaker Carlo Sommaruga, was expressed in general terms, and not as a specific motion on 1MDB or Malaysia.

“It is of course the rights of the Swiss National Council to debate any motion put before it and to make any decision that its members deem appropriate,” it said, noting however that the Swiss Federal Council (equivalent to a Cabinet), on Aug 30 last year, issued an analysis of the motion and proposed to reject the motion.

Separately, Malaysia’s finance ministry (MoF) has refuted the allegation in a letter to Swiss lawmakers that 1MDB’s assets have been misappropriated.

“1MDB has informed the MoF in a series of queries made by the MoF that any allegations of its assets being embezzled or misappropriated domestically or overseas are simply not true and politically motivated,” MoF said in a statement.

To its knowledge, MoF said Finma was investigating several private banks in Switzerland amid complaints that these banks were flouting money laundering laws and profiting illegally from several transactions without adequate background checks.

“We were advised that the 104 million francs actually represents the total amount in fines or penalties imposed by Finma on various private banks for violations of the Swiss finance and banking laws,” it said.

Therefore, it said the amount is not “monies belonging to the Malaysian government or any of its agencies or related companies”.

MoF said the checks and audit carried out by the Public Accounts Committee, Malaysian Anti-Corruption Commission, the police, auditor-general and other related agencies did not detect any missing funds from 1MDB.

As such, it said it is difficult for the ministry to take any position to make a claim with the Swiss government as the money does not belong to the Malaysian public as alleged by Wan Azizah and Kit Siang.