Former Malaysian prime minister Najib Razak has been arrested by anti-corruption investigators and will be charged over his alleged role in the multi-billion-dollar looting of a state investment fund.
A government task force probing alleged theft and money laundering at the 1MDB state investment fund said Mr Najib's arrest was linked to a suspicious transfer of 42 million ringgit (€8.9 million) into his bank account from SRC International, a former 1MDB unit, using multiple intermediary companies.
It said in a brief statement that Mr Najib will be brought to court on Wednesday to be charged, but did not give details of the charges against him.
Mr Najib's arrest comes nearly two months after his coalition's stunning rejection by voters in a May 9 general election.
The new government has reopened investigations into 1MDB that were stifled under Mr Najib's rule.
Mr Najib and his wife, who have been questioned over the SRC issue by the anti-corruption agency, have been barred from leaving the country.
Police have also seized jewellery and valuables valued at more than 1.1 billion ringgit (€233 million) from properties linked to Mr Najib, who has denied any wrongdoing.
The anti-corruption agency earlier Tuesday questioned Riza Aziz, Mr Najib's stepson and a Hollywood film producer, as it stepped up its probe on 1MDB.
Mr Riza was solemn as he arrived at the anti-corruption office and did not speak to reporters.
US investigators say Mr Riza's company, Red Granite Pictures Inc, used money stolen from 1MDB to finance Hollywood films including the Martin Scorsese-directed The Wolf Of Wall Street.
Red Granite in March agreed to pay the US government £45.4 million to settle claims that it benefited from the 1MDB scandal.
The civil suit against Red Granite was part of an effort to recover some of the £3.4 billion that US prosecutors say was stolen from 1MDB.
They say hundreds of millions from 1MDB landed in Mr Najib's bank accounts.
The 1MDB government task force this week said 408 bank accounts involving funds of nearly 1.1 billion ringgit (€233 million) had been frozen.
It said the accounts, belonging to 81 people and 55 companies, are thought to have received funds from 1MDB between 2011 and 2015.