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Kuwait Court Concludes Major ‘Malaysian Fund’ Money Laundering Case

Kuwait’s Court of Cassation, in its final ruling, sentenced the defendants to prison terms ranging from 7 to 10 years, ordered them to return $1 billion, and fined them $500 million (Asharq Al-Awsat)
Kuwait’s Court of Cassation, in its final ruling, sentenced the defendants to prison terms ranging from 7 to 10 years, ordered them to return $1 billion, and fined them $500 million (Asharq Al-Awsat)
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Kuwait Court Concludes Major ‘Malaysian Fund’ Money Laundering Case

Kuwait’s Court of Cassation, in its final ruling, sentenced the defendants to prison terms ranging from 7 to 10 years, ordered them to return $1 billion, and fined them $500 million (Asharq Al-Awsat)
Kuwait’s Court of Cassation, in its final ruling, sentenced the defendants to prison terms ranging from 7 to 10 years, ordered them to return $1 billion, and fined them $500 million (Asharq Al-Awsat)

Kuwait’s Court of Cassation on Thursday concluded the country's largest money laundering case, known as the “Malaysian Fund” scandal.

The court, led by Judge Saleh Al-Muraishid, sentenced Sheikh Sabah Jaber Al-Mubarak, son of the former Prime Minister, and his associates Hamad Al-Wazzan, Bashar Kiwan, and two expatriates to 10 years in prison.

A lawyer involved in the case received a seven-year sentence.

The court also ordered the defendants to return $1 billion and collectively fined them 145 million Kuwaiti dinars (about $500 million).

The “Malaysian Fund” case involves fake transactions and forged contracts between companies in Kuwait and China. Investigators from Malaysia and the US estimate that around $4.5 billion was embezzled from the fund since 2009, implicating the former Malaysian prime minister.

Kuwait’s Public Prosecution reopened the case after a two-year pause due to lack of information.

On March 28, 2023, the Criminal Court sentenced a member of the ruling family, his associates, and two expatriates to 10 years in prison, with a lawyer receiving seven years.

They were ordered to return $1 billion and fined 145 million Kuwaiti dinars.

The original case in Malaysia dates back to 2016 when US prosecutors filed a lawsuit to recover over $1 billion allegedly tied to a conspiracy to launder money from the Malaysian sovereign wealth fund 1MDB, overseen by former Malaysian premier Najib Razak.

The funds were used to finance a Hollywood film, buy real estate, and acquire famous artworks.

In May 2020, the scandal surfaced in Kuwait after US defense officials provided information to the late Kuwaiti Defense Minister, Sheikh Nasser Sabah Al-Ahmad, revealing the involvement of several former officials in suspicious financial transactions for Chinese and Malaysian companies.

Investigations in Kuwait showed nearly $1 billion had been transferred into the account of an influential Kuwaiti figure before being rerouted abroad.

The inquiry linked a Malaysian financial expert accused in the case to the son of a former Kuwaiti Prime Minister, and they collaborated to channel the funds through intermediary companies.

On July 10, 2020, Kuwait’s Public Prosecution ordered the arrest of Sheikh Sabah Jaber Al-Mubarak and his associate in connection with the “Malaysian Fund” case.

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Saudi and Indonesian Leaders Hold Talks on Regional, Global Issues

The Saudi Crown Prince and the Indonesian President during their talks at Al-Salam Palace in Jeddah on Wednesday (SPA) 
The Saudi Crown Prince and the Indonesian President during their talks at Al-Salam Palace in Jeddah on Wednesday (SPA) 
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Saudi and Indonesian Leaders Hold Talks on Regional, Global Issues

The Saudi Crown Prince and the Indonesian President during their talks at Al-Salam Palace in Jeddah on Wednesday (SPA) 
The Saudi Crown Prince and the Indonesian President during their talks at Al-Salam Palace in Jeddah on Wednesday (SPA) 

Saudi Crown Prince and Prime Minister Mohammed bin Salman held official talks on Wednesday with Indonesian President Prabowo Subianto, focusing on the latest regional and international developments, as well as efforts to address them. The leaders also discussed a range of issues of common interest and ways to strengthen bilateral cooperation.

The meeting took place at Al-Salam Palace in Jeddah, where Subianto was welcomed with an official reception ceremony. During their discussions, the two sides reviewed the state of relations between Saudi Arabia and Indonesia and explored opportunities to expand collaboration across various sectors.

The visit also marked the convening of the first session of the Saudi-Indonesian Supreme Coordination Council. Senior officials from both countries attended the meeting, where a number of topics on the council’s agenda were addressed. At the conclusion, the two leaders signed the official record of the proceedings.

President Subianto arrived in Jeddah on Tuesday for a state visit to the Kingdom. He was received at King Abdulaziz International Airport by Prince Saud bin Mishaal, Deputy Governor of the Makkah Region; Minister of Commerce Dr. Majid Al-Qasabi, who served as the accompanying minister; and other senior officials.

The Indonesian president’s visit comes amid significant regional developments, highlighting the importance of close coordination between Riyadh and Jakarta to reinforce regional and global security and stability.

Saudi Arabia and Indonesia share a common vision on resolving conflicts through peaceful, diplomatic means and dialogue. Both countries emphasize the need to create conditions that promote stability and security in the Middle East and beyond.

Ties between Saudi Arabia and Indonesia have steadily grown over nearly eight decades, encompassing political, economic, and cultural cooperation. The two countries are influential members of the Organization of Islamic Cooperation and play important roles within the G20. They are also bound by longstanding and close ties between their peoples.

Formal relations date back to the era of King Abdulaziz bin Abdulrahman, when Saudi Arabia was among the first nations to recognize Indonesia’s independence. This early recognition paved the way for the exchange of diplomatic missions, which later developed into full embassies. Indonesia opened its first embassy in Jeddah in 1948, while Saudi Arabia established its embassy in Jakarta in 1955.

Today, Saudi Arabia is Indonesia’s largest trading partner in the region. Both governments are committed to strengthening and diversifying trade, overcoming obstacles that hinder economic exchange, and fostering deeper engagement between their private sectors. Bilateral trade reached $6.5 billion by the end of 2024.

According to the Saudi Aid Platform, the Kingdom has implemented 113 projects in Indonesia, with a combined value of approximately $670 million. These projects span sectors such as education, transport and logistics, industry, mining, agriculture, forestry, fisheries, healthcare and early recovery, housing, non-food assistance, and a variety of developmental, humanitarian, and charitable initiatives.