He told FMT the bank’s branch in Sabah has refused to furnish any reason to justify the closure.

Police also told FMT that they did not know why the account was closed. They said neither the company nor its managing director was under investigation. There was also no police order to freeze or close the account, Bukit Aman’s anti-money laundering unit said.

Bank Negara Malaysia, which regulates banking activities, told FMT the decision to close the account “lies with the financial institution involved, which is also subject to their internal risk management appetite”.

When contacted, the bank declined comment for this story.

According to the company’s managing director, the funds were intended to finance the construction of oil and gas storage tanks in Sipitang, Sabah, as part of the Sipitang Oil & Gas Industrial Park.

He said the closure of his company’s account in 2021 had delayed the execution of the project, resulting in significant losses to the company.

He said the bank had refused to comply with two demands issued by the company’s lawyers seeking the reactivation of the account. However, the company was not in a position to file a civil suit against the bank due to financial difficulties, he added.

“The closure of our account without reasonable and valid justification has, to some extent, given a negative perception of Malaysia in terms of foreign investment,” he said.

In a letter to the managing director, the bank said it reserves the right to close any of its banking accounts by giving 14 days’ notice.

The bank also said its terms and conditions entitle it to exercise its “reasonable discretion” regarding whether to provide account holders with notice of closure of their account.

The bank also said it was not under any obligation to disclose the reason for the closure of an account unless required by law.

When contacted, Bukit Aman’s anti-money laundering division said the managing director was not under investigation.

“We can confirm that the company and its directors have not been under investigation. We also don’t know why his bank account was closed,” said the division.

“From our perspective, an investigation paper needs to be opened if we want a bank account to be closed or frozen – and that did not happen.”

The company’s managing director said both the police and BNM have referred him back to the bank for a resolution of the matter.

In an email to FMT, BNM confirmed this, saying it had conducted a comprehensive review of the businessman’s complaint.

He also gave FMT sight of a letter issued by the Attorney-General’s Chambers (AGC) confirming that the company’s account was neither subject to seizure by any of the enforcement agencies nor frozen on the AGC’s instructions.

It recommended that the businessman discuss the matter with the bank.