London, 26 May 2025 — The United Kingdom’s Serious Fraud Office (SFO) is believed to have launched an investigation into a publicly listed company owned by a Malaysian tycoon over allegations of corruption and money laundering involving investments and assets in the UK. The company had previously been investigated in Malaysia in connection with a high-profile corruption case involving former Prime Minister Datuk Seri Ismail Sabri Yaakob.
According to sources, the SFO is focusing on several large-scale investments in the UK made by the Malaysian firm, which are suspected to have been financed using misappropriated public funds. These investments are now believed to have been used as a vehicle to launder illicit money.
The firm in question reportedly acquired a 50% stake in a UK-based construction company valued at approximately £50 million. This acquisition took place despite the UK company having recorded cumulative losses exceeding £80 million during 2022 and 2023, attributed to cost pressures and underperformance.
The Malaysian firm is also said to be involved in mixed-use property developments, including condominiums, rail-linked infrastructure projects worth more than £3 billion, and the acquisition of historically significant real estate in central London.
Parallel Investigation in Malaysia
In Malaysia, the Malaysian Anti-Corruption Commission (MACC) is investigating claims that approximately £119 million (US$150 million) in public funds were embezzled during Ismail Sabri’s administration between August 2021 and November 2022.
Authorities have so far seized assets worth nearly £30 million (US$38 million), which include large amounts of foreign currency, gold bars, and luxury goods from properties linked to the former Prime Minister and his close associates.
It is further alleged that the Malaysian tycoon’s firm had funded political campaigns in exchange for being awarded rail infrastructure contracts in Malaysia.
The SFO is understood to have received official intelligence from Malaysian enforcement agencies and financial regulators to aid in tracing the funds that were transferred and invested in the UK. This reflects a growing level of cross-border cooperation in tackling transnational financial crimes and corruption.
While the official identity of the Malaysian company under investigation has not yet been disclosed, investigators are said to be examining UK subsidiaries, real estate holdings, and associated financial accounts.
This high-profile investigation underscores the commitment of international enforcement bodies to track down illicit assets worldwide and hold those who abuse public office accountable under the law.
Not the First Malaysia-Linked SFO Investigation
The SFO’s collaboration with Malaysian authorities is not new. The agency has previously played a supporting role in major transnational corruption cases, most notably the 1Malaysia Development Berhad (1MDB) scandal — a global money laundering case that exposed billions in embezzled funds routed through international financial centres, including London.
Several UK-based entities were directly or indirectly involved in managing or concealing 1MDB-linked funds:
• Goldman Sachs International (GSI) – arranged 1MDB bonds totalling approximately £5.1 billion (US$6.5 billion)
• Clyde & Co (law firm) – held roughly £257 million (US$325 million) in disputed assets
• PetroSaudi International (UK) – implicated in the early-stage embezzlement
• Coutts & Co (a NatWest subsidiary) and Good Star Ltd – linked to fund movements through offshore structures
• Deutsche Bank (UK) – facilitated bond arrangements worth around £944 million (US$1.2 billion)
These prior cases demonstrate the vital role of UK regulatory and legal frameworks in tracing and addressing the misuse of the global financial system for corrupt purposes.
