Eight individuals have been detained by authorities as the Malaysian Anti-Corruption Commission (MACC) intensifies its investigation linked to frozen bank accounts involving giant fashion retailer Padini Holdings Bhd and its subsidiaries.
Accounts frozen under AMLA provisions
According to MACC chief commissioner Tan Sri Azam Baki, the case is being investigated under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), with statements already recorded from 10 people while another 15 people would be brought in to assist in the probe.
Earlier disclosures showed that multiple bank accounts belonging to Padini and several of its subsidiaries were frozen under Section 44(1) of AMLA as part of the ongoing probe.
Padini cites accounts linked to external counterparties, operations unaffected
Padini had confirmed that the affected accounts were linked to external counterparties rather than its core management or operations, and stressed that it was fully cooperating with investigators.
A total of 21 bank accounts across Padini and five subsidiaries were frozen under AMLA include Padini Corporation, Vincci, Seed, and others.
However, Padini previously stated that the frozen accounts are not actively used for day-to-day business operations, and the group still has access to other banking facilities to maintain continuity.
Furthermore, it has been noted that Padini Holdings has mentioned that there will be no effect on the company’s performance due to the above-mentioned issue.
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