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Malaysia's disgraced ex-leader Najib Razak will face new charges in court Wednesday under anti-money laundering laws in a case linked to a multi-billion-dollar graft scandal, authorities said.

The yacht - worth about $250 million - was handed over by Indonesian authorities who had seized it off the tourist island of Bali in February.

Finance Minister Lim Guan Eng said the yacht has set sail from the Indonesian island of Batam near Singapore and arrived in Malaysia's Port Klang on Tuesday.

The former prime minister turned up at the Malaysian Anti-Corruption Commission Academy in a four-car motorcade at about 5pm on Tuesday, where he was said to have received three notices on the new charges against him.

Malaysia is trying to recover up to $1.7 billion in assets, including the yacht, that the DoJ has alleged were bought with stolen 1MDB funds.

The center, which aims to draw Islamic scholars to combat extremist views and promote tolerance, was announced in March a year ago during King Salman's visit to Malaysia under former Malaysian leader Najib Razak.

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Saudi Arabia long has been sensitive to global pressure over the Raif Badawi sentence. The arrests last week brought criticism from the Canadian government.

"However, according to the reports and investigations done by the US Department of Justice (DoJ), they are of the opinion that this vessel was purchased with money stolen from 1MDB (1Malaysia Development Bhd), which has been laundered by purchasing this vessel, buildings and others, so that the money won't appear to be stolen funds", Dr Mahathir added. Najib, who set up and oversaw 1MDB, denies any wrongdoing. USA investigators said Low, known widely as Jho Low, bought the yacht with proceeds diverted from 1MDB.

Low, who has so far evaded investigators, issued a statement through his U.S. lawyer on Monday protesting the handover of the yacht as an "illegal act" for ignoring court proceedings in the United States. His Malaysian passport has been revoked and an arrest warrant issued.

In a filing to a California court, the justice department proposed "that all proceedings in this action be suspended in order to give the government and any interested claimant the opportunity to inquire of Malaysia through formal channels what its intentions are with respect to the defendant yacht".

Mahathir said any claimants to the yacht should provide proof that it belonged to them, and where they got the money to pay for it.

He said Indonesia, Malaysia and the USA recently activated the mutual legal assistance treaties among themselves.

Hishammuddin Hussein says Malaysia lost a good chance to join the global fight against terrorism by closing the Saudi-backed King Salman Centre for International Peace.