KUALA LUMPUR, Malaysia – Malaysia's central bank says state investment fund 1MDB violated foreign exchange rules and must repatriate a total of $1.83 billion that it used abroad.
The central bank said Friday that 1MDB obtained permission for overseas investments based on "inaccurate or without complete disclosure of material information." It said it has recommended criminal prosecution of the fund, although the attorney-general said Thursday that it found no wrongdoing by fund officials.
No details were given on when the investments were made.
The central bank's move is a new blow to the fund, which was set up by Prime Minister Najib Razak in 2009 to develop new industries, but faces accusations of graft and mismanagement after it accumulated at least 42 billion ringgit ($10 billion) in debt.
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