ANZ Bank may sell Malay stake amid PM scandal
(31 March 2016 – ASIA) Following recent scandals involving Malaysian Prime Minister, Najib Abdul Razak, ANZ Bank may divest itself Malaysian based AmBank Holdings, The Australian newspaper has reported.
"ANZ is understood to have been trying to divest its stake in the scandal-plagued Malaysian bank since at least September — one month after tens of thousands of Malaysians staged street protests over the scandal," reported The Australian.
According to publication, the volume of money entering into Razak’s accounts triggered money-laundering alerts within AmBank, which led to the bank having to pay a fine after Bank Negara found it breached anti-money laundering and counter-terrorism monetary transaction regulations linked to “politically exposed persons”.
ANZ Bank has said it cannot act over the alleged transfer of more than US$1 billion (A$1.3 billion) into Najib’s personal accounts at AmBank, despite being a major shareholder of the Malaysian institution with ANZ executives working in senior management and sitting on the board.
Having bought nearly a quarter of the business in 2006, ANZ bank is a major shareholder in AmBank.
According to the partnership agreement drawn up after the acquisition and lodged with the Australian Stock Exchange, it obliges the Malaysian firm to follow its Australian partner’s rules of probity and core policy “to the extent appropriate in Malaysia”.
AmBank must also consult the Australian lender prior to approving any business plan, major mergers, disposals, acquisitions or changes in capital structure or direction," noted the newspaper article.
In a statement provided to The Australian, ANZ Bank admitted that it is "very concerned by the recent issues involving AmBank", however pointed out that ANZ-nominated directors and nominated employees of AmBank are subject to significant restrictions under company, banking, privacy and other laws relating to operational matters and to specific accounts.
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