This article first appeared in The Edge Financial Daily, on May 27, 2016.

KUALA LUMPUR: Opposition legislator Tony Pua asked yesterday if Bank Negara Malaysia had commenced investigations into the more than US$1 billion allegedly deposited into Prime Minister Datuk Seri Najib Razak’s personal account, for possible money laundering.

Citing recent action by Switzerland’s Office of the Attorney General and the Monetary Authority of Singapore on the BSI Bank, Pua questioned: “What has Bank Negara done to protect the integrity of our financial system?”

“Despite the fact that Malaysia is being ridiculed globally and cited as an example of a rogue state run by kleptocrats, Bank Negara has barely bared its purportedly powerful fangs to indict those who have been responsible,” he said at a news conference at the Parliament lobby.

Pua said the central bank had earlier investigated how 1MDB illegally transferred US$1.83 billion overseas and demanded it return the funds immediately.

“But it all ended when Bank Negara agreed to close the chapter by slapping 1MDB on the wrist with a compound. 1MDB issued a statement that it had paid the fine yesterday.

“The quantum of the fine was undisclosed, so it could be a pitiful RM4,000 for all we know,” he added.

Pua noted that Department of Special Affairs director-general and Umno leader Datuk Mohd Puad Zarkashi, when explaining Najib’s “donation” scandal, told students in Australia that the prime minister had discussed the matter with then Bank Negara governor Tan Sri Dr Zeti Akthar Aziz and even received the central bank’s approval to bring in the money.

Najib has been accused of receiving more than US$1 billion in his personal account with AmBank Bhd, which he has not denied.

“The question for Bank Negara is, did Datuk Seri Najib Razak indeed obtain approval from Bank Negara and has the information on the source of funds been diligently verified since it has brought disrepute to the country?” Pua asked.

Pua said fellow DAP parliamentarian Lim Lip Eng submitted a letter on Aug 5, 2015 asking the central bank to clarify if the transaction complied with the Anti-Money Laundering and Anti-Terrorism Financing Act 2013 (Amla).

He noted that Najib and other Umno leaders had insisted that the “incredibly large sums” the prime minister received were “donations” from an unnamed Middle-Eastern individual.

“However, that does not absolve the prime minster from the purview of Amla. Even a ‘donation’ could have originated from illegal and illicit sources via complex money-laundering mechanisms.

“Bank Negara must confirm if the prime minister has been investigated under the law and if he has been cleared. Silence from Bank Negara is not an option.

“The failure to investigate or confirm the above will only mean that the central bank has abdicated its powers and severely neglected its responsibility to protect the integrity of our financial system, especially when compared to the actions of foreign central banks to date,” said Pua.