KUALA LUMPUR (April 28): Troubled 1Malaysia Development Bhd (1MDB) said it will pay the compound imposed by the central bank for failing to comply with bank rules.

"1MDB refers to the statement from Bank Negara Malaysia (BNM), confirming the closure of investigations on 1MDB and the imposition of an administrative compound for non-compliance with certain directions of BNM.

"1MDB fully respects the authority and decision of BNM on this matter. Payment of the compound will be made on or before the due date," it said in a statement this evening.

The central bank had earlier announced that it has fined the Ministry of Finance Inc's unit an unspecified amount for failing to fully comply with directions which the bank had issued under Financial Services Act 2013.

"This includes requirement for 1MDB to repatriate monies remitted abroad, following the revocations of the three permissions granted by BNM to 1MDB in 2009, 2010 and 2011," it had said in a statement.

It had also said the fund had also failed to provide evidence to justify its inability to fully comply with the repatriation order, and has given 1MDB until May 30, 2016, to pay the compound.

"The payment of the compound marks the conclusion of the investigation by BNM on the contraventions to the rules and regulations of the central bank," it had added.

To recap, the central bank was pursuing appropriate administrative enforcement actions against 1MDB for failing to substantiate the reasons it gave on its non-repatriation of a sum of US$1.83 billion (RM7.13 billion) which it had invested overseas.

The amount was initially allocated for equity and loan investments in a joint venture with PetroSaudi International Ltd between 2009 and 2011, but the fund had previously said the money had already been spent or earmarked for debt settlement arrangements.