Najib Razak has been charged with corruption, a dramatic fall from grace for the former Malaysian prime minister two months after he lost office.
Mr Najib suffered a shock election loss in May, as Malaysia's ruling coalition was ousted after governing the country since independence in 1957.
"The 1Malaysia Development Board (1MDB) taskforce has confirmed that the arrest against Najib at 2.35pm today is related to the SRC International Sdn Bhd investigations", said the MACC in a statement.
His arrest was in relation to a probe into SRC International, a former unit of the troubled 1MDB.
A spokesman for Najib said on Tuesday that the SRC charges and the 1MDB investigations against the former leader were "politically motivated", and that Najib will contest the charges and clear his name in court.
Earlier, Najib had his charges read to him at the Sessions Court before the case was transferred to the High Court, under request from the prosecution team.
Shafee said, "We have a good defence and you will see when trial starts".
"It shows the resolve of the new government to address previous abuses of power".
- Three months after taking over as prime minister, Najib launches the 1MDB sovereign fund to invest in energy, real estate and other industries.
The US Department of Justice (DOJ) began investigating 1MDB, saying $4.5bn had been diverted.
The arrest, made in connection with the investigation of a massive corruption scandal, was carried out last week by anti-corruption task force officials.
- Police say almost US$275 million of assets found at properties linked to Najib, including 12,000 pieces of jewellery, more than 500 handbags, more than 400 watches and almost US$30 million in cash.
However, Red Granite in March this year agreed to pay US$60 million (RM234 million) to the U.S. government to resolve allegations that it profited from corrupt money involving 1MDB, according to a report.
He took the money, the charges allege, when he "participated in or involved yourself in decisions on behalf of the Malaysian government to give government guarantees for loans amounting to four billion ringgit ($1.34 billion)".
The civil suit against Red Granite was part of an effort to recover some of the $4.5 billion that United States prosecutors say was stolen from 1MDB.