Malaysia

Guilty: Najib Razak convicted on all 21 money laundering charges in 1MDB scandal

Ex-PM convicted on all 21 money laundering charges linked to the RM2.3 billion misappropriated from the 1MDB fund, marking an unprecedented ruling against a nation’s ex-leader

Updated 8 months ago · Published on 26 Dec 2025 5:44PM

Guilty: Najib Razak convicted on all 21 money laundering charges in 1MDB scandal
Verdict depicts a watershed moment in Malaysia’s anti-corruption campaign - December 26, 2025

MALAYSIA’S former prime minister Datuk Seri Najib Razak has been found guilty on all 21 counts of money laundering connected to the 1Malaysia Development Berhad (1MDB) scandal, in a landmark High Court ruling in Putrajaya.

The verdict confirms that the prosecution proved its case beyond reasonable doubt, delivering a historic outcome against a former head of government.

Najib, 72, who served from 2009 to 2018, was convicted of receiving US$681 million (around RM2.08 billion) from a 1MDB subsidiary, issuing cheques, and transferring funds that were ultimately diverted for personal and political use.

The High Court accepted evidence presented by an official from Bank Negara Malaysia (BNM) confirming that the funds in question originated from 1MDB, supported by contemporaneous documentation.

The money was therefore deemed proceeds of unlawful activity under Section 3 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.

In its assessment, the court noted that an overdraft facility granted to Najib had also not been fully accounted for.

Given Najib’s position as prime minister and finance minister, he would have had no difficulty verifying the documents related to the purported Arab donation, yet he failed to do so.

The court highlighted that a MACC delegation sent to Riyadh was unable to authenticate the donation letters.

"However, he obtained the specific remittance to return the remaining US$620 million from his accounts. The money went back to the Tanore account.

“This is no trivial sum; the money trail clearly shows that the funds originated from 1MDB bond entities, passed through Tanore, and were deposited into Najib’s accounts in March 2013.

“The claim of an Arab donation cannot be sustained," the judge stated.

Presiding judge Datuk Collin Lawrence Sequerah dismissed Najib’s defence that the money was a Saudi donation and that he had been misled by rogue financiers.

The court underlined that Najib had full control over his accounts but failed to verify the origin of the funds, demonstrating “willful blindness.”

"Najib testified that he had transferred back the US$620 million and gave instructions to close one of the AmBank accounts. This showed that Najib was in control of his bank accounts.

“Despite this, he did not verify the sum received from Tanore. Najib also did not verify the origins of the money and also the Tanore," the judge observed.

Sequerah highlighted that Najib relied on banking institutions to distance himself from responsibility, a claim the court found without merit.

The conviction included transfers of RM2.034 billion back to Tanore Finance Corporation and RM161.41 million into a new personal account. Entities receiving the funds were ultimately deemed to benefit Najib directly or indirectly.

The judge confirmed the money in Najib’s accounts constituted proceeds of unlawful activity under Malaysia’s Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act, dismissing his claim of a legitimate Arab donation.

Najib is already serving a 12-year sentence from a prior 1MDB-linked conviction, making him Malaysia’s first former prime minister to be imprisoned.

His original sentence, halved by the Pardons Board in 2024, and a rare royal order for home arrest were recently overturned. He was initially due for release in 2028, but now faces an extended period behind bars.

The 1MDB scandal involved the siphoning of more than US$4.5 billion between 2009 and 2014, triggering global investigations in the United States, Singapore, Switzerland and elsewhere.

Funds were allegedly used to finance Hollywood films, luxury properties, yachts, artwork and jewellery.

Najib has consistently denied wrongdoing, claiming the money was a donation and that financier Low Taek Jho misled him.

Prosecutors argued that Najib was the scheme’s architect and ultimate beneficiary, with others acting under his direction.

His wife, Datuk Seri Rosmah Mansor, was sentenced to ten years’ imprisonment and a substantial fine in a separate graft case in 2022. She remains free on bail pending appeal.

The High Court ruling underscores a pivotal moment in Malaysia’s anti-corruption fight, demonstrating that even the nation’s most powerful leaders can be held accountable.

It also highlights the perseverance of domestic and international law enforcement in pursuing justice in one of the world’s most audacious financial scandals. - December 26, 2025

Read also:Najib convicted of all four abuse of power charges

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