AMMB Holdings, the Malaysian bank widely known as AmBank, has agreed a RM2.83 billion ($699 million) settlement with the government of Malaysia.
It moves a step closer to putting the 1MDB scandal in the country’s rear-view mirror, but also blights the bank’s earnings, surprising its investors – and delivering a knock-on hit to shareholder ANZ.
AmBank was one of the Malaysian institutions most closely linked to the 1MDB scandal. It held prime minister Najib Razak’s bank accounts, including one through which Najib received a $681 million payment from the Saudi royal family that was at the heart of the drama.
The fine – the rationale of which the ministry of finance does not spell out – came as something of a surprise to the market, given that AMMB has already been fined once.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
