Negri Sembilan MB freed of blame in illegal funds transfer case

An employee works inside a money exchange centre in Kuala Lumpur October 22, 2013. — Reuters pic
An employee works inside a money exchange centre in Kuala Lumpur October 22, 2013. — Reuters pic

KUALA LUMPUR, Nov 18 — Putrajaya confirmed today that no charges would be brought against Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan for allegedly violating banking laws when he transferred RM10 million to London through a moneychanger in 2008.

In a Parliamentary written reply here, Minister in the Prime Minister’s Department Nancy Shukri explained that the Attorney-General’s Chambers (AGC) cleared Mohamad of any wrongdoing when it found the funds were clean and decided instead to punish the moneychanger that had helped remit the money to a London account.

“The AG’s Office has scrutinised the details of the investigation. The RM10 million was not the product of corruption.

The AG’s Office was of the opinion that it was more appropriate to take action on the moneychanger,” Nancy said in a written reply to Seremban DAP lawmaker Anthony Loke.

The statement, however, did not explain why the Negri Sembilan MB had wanted to transfer the money overseas through a currency-exchange company although it was clearly illegal.

The case had come under a Bank Negara probe after the central bank launched a wide-scale investigation into illegal overseas remittances in 2009.

The investigation later led to the shutdown of the country’s three biggest moneychangers, which were found guilty of breaching the Money-Changing Act 1998.

The investigation also forced a Malaysian tycoon with a Tan Sri title to pay nearly RM200 million in fines for illegal remittances.

Mohamad had denied any wrongdoing in the matter.

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