KUALA LUMPUR, Oct 19 — Malaysia’s central bank today clarified that it is empowered under existing laws to take enforcement actions on any party that has failed to abide by the rules and regulations set out under the laws, amid accusations that it had undermined the Attorney-General’s Chambers (AGC) by revoking permissions given to 1Malaysia Development Berhad (1MDB).

In a brief statement sent late this evening, Bank Negara Malaysia (BNM) said there are provisions under the Financial Services Act 2013 and Islamic Financial Services Act 2013 that allow it to pursue such actions – called administrative actions – against any party, regardless if there are ongoing criminal proceedings.

“These actions may be taken concurrently with, and are separate and distinct from, criminal proceedings that are under the sole purview of the Attorney-General.

“This would include the imposition of monetary penalties, issuance of an order to comply, making restitution to any person aggrieved by a breach, public and private reprimands and an order to take steps to mitigate or remedy a breach.

“This is to ensure the integrity of, and confidence in, the financial system,” the statement read.

Last Friday, Malay group Jaringan Melayu Malaysia (JMM) filed a police report against BNM Governor Tan Sri Zeti Akhtar Aziz, claiming that she was “undermining” the reputation of the AGC and Attorney-General Tan Sri Mohamed Apandi Ali by revoking permissions granted to 1MDB.

BNM had revoked its three permissions given to 1MDB for investments abroad totalling US$1.83 billion (RM7.6 billion) previously, and instructed the state-owned company to repatriate the amount.

Prior to the revocation order, the AGC had earlier this month dismissed the central bank’s second request for criminal proceedings against 1MDB for allegedly breaching the Exchange Control Act.