In the context of the 1MDB case, the bank failed to adequately monitor relationships with a client group with around 100 accounts at the bank. Transactions were executed within the client group and with third parties without the bank adequately clarifying their commercial justification.
There is a plan to redeem SRC International's money stuck in BSI Bank Limited (BSI Bank), the Finance Ministry announced today.
Finance Minister II Datuk Johari Abdul Ghani, however, refused to divulge details on the plan and said it was a work in progress.
“SRC is also one of the companies we are facing a problem, so I don't want to elaborate details about that.
“Let the process of SRC trying to recover their money (happen) first. We are working out through various means to establish the money that has been deposited under BSI,” he told reporters on the sideline of an event today.
Malay Mail Online obtained a transcript of the press conference.
Johari explained that the money was stuck in BSI Bank as the bank is currently under probe in Singapore over links to funds from local state investment firm, 1Malaysia Development Berhad (1MDB).
“I was told by the management of SRC that the money in BSI bank got frozen and therefore they cannot take back the money.
Clearly not just frozen but lost, for good.