Malaysia’s High Court Pauses Najib’s Money Laundering Charges — But 1MDB Ghost Still Haunts Him

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Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

Malaysia’s High Court has made a major decision involving Najib Razak, the country’s former prime minister. The court agreed to drop three money laundering charges tied to the 1MDB scandal. These charges were related to 27 million ringgit (about $6.4 million) that Najib allegedly misused from SRC International, a company linked to the troubled 1MDB fund.

The court did not fully clear Najib’s name. Instead, it issued a Discharge Not Amounting to an Acquittal (DNAA). This means he is no longer facing these charges for now, but the prosecution can bring them back at any time. It’s not a full acquittal and doesn’t mean he’s innocent — just that the charges are not moving forward for the moment.

Najib’s lawyer, Muhammad Shafee Abdullah, told reporters the court’s move was fair. He said the case had been delayed many times since 2019, and it was unjust to let Najib keep waiting. “So (Najib) isn’t left waiting or, as they say, no longer has the sword of Damocles hanging over his head,” he said.

The Attorney-General’s Chambers did not immediately give a comment.

The Long 1MDB Scandal

The 1Malaysia Development Berhad (1MDB) scandal is one of the world’s largest financial fraud cases. Authorities from Malaysia and the United States have said that about $4.5 billion was stolen from this state-owned fund through an international web of fraud, bribery, and embezzlement.

Najib Razak was first sentenced to prison in August 2022 after being found guilty of abuse of power, criminal breach of trust, and money laundering in a separate case involving SRC International, a former unit of 1MDB. Even though he has denied all wrongdoing, courts have found evidence that he received millions in misappropriated funds.

The charges dropped this week were separate from that conviction but were based on money allegedly taken from the same company, SRC. These particular charges had been sitting in the court system for years, often stalled due to procedural delays.

Ongoing Legal Battles

This is not the first time Najib has seen 1MDB-related charges dropped. In 2023, a different court also granted him a DNAA in a separate corruption case, again due to delays. That same year, Najib was also acquitted of allegations that he tried to tamper with a government audit on the 1MDB fund.

Although some cases have been cleared or paused, Najib’s biggest trial over 1MDB is still ongoing. The court is expected to hear closing arguments in October.

Meanwhile, Najib is also trying to serve the rest of his sentence under house arrest. He claims that a royal order may exist allowing this and has asked the government to officially confirm whether such a document is real.

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