US returns RM720 mln to Malaysia in recovered 1MDB funds - Embassy

KUALA LUMPUR: The United States (US) has returned about US$156 million (RM721.4 million) to Malaysia, representing the fourth installment of funds recovered from asset seizures related to 1Malaysia Development Bhd (1MDB).

US ambassador to Malaysia Edgard D. Kagan met Prime Minister Datuk Seri Anwar Ibrahim on June 11 and confirmed that the funds were being returned following the US Justice Department approval of the remission petition submitted by the Malaysian government.

In a statement yesterday, the embassy said with this transfer, the US has recovered and assisted in recovering and returning about US$1.4 billion (RM6.6 billion) in funds misappropriated from Malaysia to date.

"We are very happy that this fourth tranche of assets from the Justice Department investigation is being transferred back to Malaysia.

"This extraordinary sum of money is going back to the people of Malaysia where it belongs and where it can finally be used for its original intended purpose - to better the lives of everyday Malaysians," said Kagan.

According to the statement, the embassy said as alleged in the complaints, the members of the conspiracy, which included officials at 1MDB, their relatives and other associates, diverted more than US$4.5 billion in 1MDB funds.

It said the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the US and abroad using fraudulent documents and representations.

"These transactions allegedly served to conceal the origin, source, and ownership of the funds, and ultimately passed through US financial institutions to then be used to acquire and invest in assets located in the US and overseas," it said.

The embassy added that the US government remains committed to recovering and returning additional funds stolen from 1MDB to benefit Malaysians.

-- BERNAMA

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