Former Malaysian Army Chief and Wife Charged Over RM2.2 Million Money Laundering Case

Malaysia’s former army chief and his wife were charged on Thursday (Jan 22) with money laundering offences involving close to RM2.2 million (US$543,000), marking another major development in a widening anti-corruption crackdown within the country’s defence establishment.

In separate proceedings at the Kuala Lumpur Special Corruption Court, 58-year-old Muhammad Hafizuddeain Jantan and his wife, Salwani Anuar, 26, were each slapped with four charges under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act. Both pleaded not guilty and opted to contest the charges after they were read out in court.

The charges form part of a broader anti-graft campaign focused on alleged irregularities in military procurement, following a wave of high-profile arrests and asset seizures that began in late 2025. According to court documents, Hafizuddeain is accused of receiving proceeds from unlawful activities amounting to approximately RM2.1 million. Salwani, identified as Hafizuddeain’s third wife, is alleged to have received proceeds of unlawful activities totalling about RM77,000.

If found guilty, both face sentences of up to 15 years’ imprisonment, as well as fines of no less than five times the value of the illicit proceeds or RM5 million, whichever is higher. Hafizuddeain, who was appointed army chief in September 2023, had been expected to assume the role of chief of the armed forces — the highest-ranking professional position in the military — before his promotion was suspended in late December amid the ongoing corruption investigation.

The court granted Hafizuddeain bail of RM250,000, while Salwani was released on bail of RM30,000. Both were ordered to surrender their passports and are required to report to the Malaysian Anti-Corruption Commission (MACC) once every month. Deputy Public Prosecutor Wan Shaharuddin Wan Ladin led the prosecution in both cases. Hafizuddeain was represented by lawyer Aizul Rohan Anuar, while Salwani was represented by Fahmi Abd Moin.

In a statement released by the MACC on Wednesday, the commission said Hafizuddeain is expected to face two additional charges under the same law at the Shah Alam Special Corruption Court in Selangor on Friday (Jan 23). Salwani, meanwhile, will be charged with one offence at the Jertih Sessions Court in Terengganu on Jan 26. The MACC also announced that former armed forces chief Nizam Jaffar will be charged on Friday with criminal breach of trust and corruption-related offences.

Nizam assumed the role of armed forces chief in January 2025, becoming the first individual appointed from outside the ranks of the serving chiefs of the Army, Navy and Air Force. Prior to that, he served as assistant Chief of Staff for Personnel Services at the Malaysian Armed Forces Headquarters. His career included stints as aide-de-camp to Malaysia’s 14th king, Tuanku Abdul Halim Mu'adzam Shah, who reigned from 2011 to 2016, as well as commandant of the National Resilience College, according to the New Straits Times. Media reports said Nizam, who was due to retire mandatorily upon turning 60 in August this year, began his leave on Jan 1.

The MACC added that investigations involving two other senior armed forces officers are now in their final stages, with investigation papers expected to be submitted to prosecutors soon for further action. To date, the commission has seized and frozen more than RM52 million (US$12.82 million) in cash, gold, luxury items and funds held across over 80 bank accounts in two separate cases linked to alleged corruption in army procurement contracts. So far, 23 individuals — including military personnel and civilians — have been arrested.

The government has reiterated its determination to clamp down on corruption and misconduct in the defence sector following a series of scandals. On Wednesday, Prime Minister Anwar Ibrahim launched the National Defence Industry Policy (NDIP), which aims to restore trust, strengthen governance and institutions, and expand domestic industrial capacity within the sector. “As we all know, when it comes to defence, it’s been a place for ‘songlap’ (embezzlement) and ‘sakau’ (stealing), where corruption in the defence sector was not merely a financial issue, but a direct threat to national security,” he said, as reported by news outlet Malay Mail.

Anwar described the policy as long overdue in light of recent scandals, while stressing that the integrity of the vast majority of defence personnel remains intact. Earlier, he had announced that all procurement decisions by the Malaysian armed forces and the police connected to the MACC probe would be temporarily frozen until they fully comply with existing rules. He also said the government would review all other procurement decisions that have either been approved or are still pending.

At the opening of the current parliamentary session on Monday, Malaysia’s King Sultan Ibrahim Sultan Iskandar called for an “all-out” fight against corruption, emphasising that enforcement efforts must target not only those receiving bribes, but also those offering them or acting in collusion. Defence Minister Khaled Nordin likewise condemned the recent scandals involving the armed forces, pledging to review tender and procurement processes and overhaul anti-corruption measures within the ministry. “Corruption is a cancer that prevents us from competing as a mid-level power,” Khaled had said, noting that immoral activities in military camps and the ongoing procurement graft probe have severely damaged the reputation of both his ministry and the Malaysian Armed Forces.

Analysts have since called for harsher penalties for misconduct and stronger parliamentary oversight of major arms purchases in the wake of the unfolding scandals within the armed forces.

By fLEXI tEAM