Former Bank Negara Malaysia (BNM) governor Muhammad Ibrahim has clarified his position as a director of Cambodia’s Prince Bank, which is facing a bank run after its parent company, Prince Group, was slapped with US and UK sanctions.
Muhammad said his position at the Cambodian lender was “strictly non-executive and independent”, with responsibilities focused on ensuring sound governance, risk management, and regulatory compliance in line with the country’s laws and the National Bank of Cambodia’s guidelines.
“It is important to highlight that the bank operates independently of its shareholders,” he said in response to queries from FMT.
“I remain committed to transparency, sound governance, and regulatory integrity as the bank works through this period responsibly and in compliance with applicable laws.”
A 2024 annual report published on Prince Bank’s website lists three Malaysians linked to its leadership: Muhammad as an independent director, its CEO and executive director, and a senior adviser to the board.
There is also a strong Malaysian presence among the ranks of the bank’s senior management team.
They hold key positions such as chief financial officer, chief information officer, chief risk officer, chief distribution officer, and chief people and communications officer, according to the same report.
FMT is withholding the names of these individuals.
Prince Bank, one of Cambodia’s largest commercial lenders, is reportedly experiencing mass withdrawals after the US department of justice (DoJ), the US department of the treasury, and the UK government imposed sanctions on Prince Group and its CEO, Chen Zhi, on Oct 14.
US authorities have charged Chen with fraud and money laundering and moved to seize 127,271 bitcoins, worth about RM74 billion, allegedly laundered by Chen and the group.
The seizure is the largest in the DoJ’s history. Chen faces up to 40 years in prison if convicted.
In a joint statement issued on Oct 17, Prince Bank’s board emphasised the bank’s financial stability and adherence to governance and regulatory standards.
It said the bank operated independently of its shareholders and remained fully solvent, with all services running normally.
The board also announced plans to appoint international legal counsel to pursue delisting from the US Office of Foreign Assets Control (OFAC) sanctions list.
