Legal

Malaysia Charges Former Premier's Lawyer With Money Laundering - Reports

Tom Burroughes Group Editor September 18, 2018

Malaysia Charges Former Premier's Lawyer With Money Laundering - Reports

Another prominent individual is caught up in the 1MDB money laundering scandal.

A lawyer acting for former Malaysian prime minister Najib Razak has been charged with money laundering as the long-running corruption scandal around the 1Malaysia Development Berhad fund rumbles on.

The charges were brought last week against Muhammad Shafee Abdullah, various reports, including those of Reuters, said.

The former PM is himself contesting charges of criminal breach of trust, money laundering and abuse of power at the state-run 1MDB. Efforts to convict high-ranking officials have cranked up since Najib Razak lost power in shock national election results in May this year. He was defeated by veteran Malaysia politician Mahathir Mohamad.

Failings around money laundering controls in the international financial system have already seen banks such as BSI and Falcon Private Bank, for example, being kicked out of Singapore. Authorities in the US, Singapore and Switzerland, among others, have become involved.

Reports said Shafee pleaded not guilty to two counts of money laundering at a court in Kuala Lumpur after allegedly receiving 9.5 million ringgit ($2.29 million) from Najib. He also faces two charges of false income tax declaration. Prosecutor Gopal Sri Ram said the case was part of the 1MDB investigation but did not say if the money allegedly received by Shafee was from the fund, reports said.

The charge sheet claims Shafee received the money through cheques from Najib in 2013 and 2014.

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