China denies WSJ’s report that they laundered money

The Finance Minister leaked the story to WSJ but the allegation is denied by CPP

It was reported yesterday that funds from an Export-Import Bank of China (EXIM Bank China) loan meant for the RM9.4 billion Suria Strategic Energy Resources Sdn Bhd (SSER) project were allegedly laundered to pay off 1MDB’s debts.

WSJ cited current Malaysian officials who believed that a portion of the US$2 billion loan had been channelled into a series of shell companies before ending up in Silk Road Southeast Asia Real Estate Ltd, a China company based in the Cayman Islands.

China Petroleum Pipeline Engineering Co Ltd (CPP) has denied this and said that all funds from EXIM Bank China were only paid directly to CPP’s bank accounts.

In a statement today, the company said this was in accordance with the strict anti-money laundering banking rules, regulations, and signed legal agreements.

“There were absolutely no funds paid to any third-party Cayman Island-based company and/or companies whatsoever,” it said.