KUALA LUMPUR, July 30 — The Malaysian Anti-Corruption Commission (MACC) has dropped its money laundering charges against former Apco Malaysia boss Paul Geoffrey Stadlen, who also previously aided Datuk Seri Najib Razak in his publicity campaigns after he, the Attorney General's Chambers (AGC) and lawyer Datuk Mohd Hafarizam Harun came to an agreement.

In a statement today, MACC said Paul had voluntarily agreed to forgo a sum of RM7,192,873.84 and that money would be deposited into the trust accounts of 1Malaysia Development Berhad (1MDB).

“The MACC would like to state that an agreement has been made between the AGC, Paul Geoffrey Stadlen and Datuk Mohd Hafarizam Harun who was charged under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 for misappropriating a sum of RM15 million.

“Stadlen has voluntarily agreed to release a sum of RM7,192,873.84 to a 1MDB trust account. As such, the case against him has been dropped,” the anti-graft agency said.

“In addition MACC and the AGC have decided that the case against Hafarizam will also be dropped once he pays a compound of RM590,587.26 as he too is being charged under Section 92 (1) Act 613.”

Umno legal adviser Hafarizam was charged in February 2019 with money laundering for allegedly depositing RM15 million in illegal funds via three cheques from Najib into his law firm's client account.

Under the first charge, Hafarizam was accused of engaging directly in two transactions that involved proceeds from illegal activity, by causing RM11.5 million through two AmIslamic Bank Berhad cheques belonging to Najib to his law firm Hafarizam Wan & Aisha Mubarak’s client account in CIMB Bank Berhad.

He was alleged to have done so between April 16 and November 4, 2014.

As for Stadlen, an arrest warrant was issued for him in February 2019.

Stadlen’s case involves two counts of money-laundering charges for ordering payments amounting to a total of over RM14.25 million from Hafarizam’s law firm’s client account to several individuals and companies.

The first charge alleges that Stadlen had ordered RM8,111,322.43 from illegal activities to be paid via 27 transactions from Hafarizam’s law firm’s client account to individuals and companies during June and December 2014 period.

The second charge alleges Stadlen of having ordered the transfer of RM6,139,078.34 in proceeds from illegal activities via 16 transactions from the same client account to individuals and companies between January and August 2015.

Stadlen was reported to have left Malaysia after Najib lost power on May 9, 2018.