The financial wrongdoing allegations in Malaysia - which have already led to bank probes as far apart as in Singapore and Switzerland - have seen the chairman of CIMB Group take a leave of absence.

Concerns about corruption and bribery in some of Malaysia’s leading financial organisations have taken another turn.

The chairman of Malaysia-headquartered CIMB Group, Nazir Razak, has taken a “leave of absence” pending a review of the bank’s processes and policies, after he distributed S$9.5 million ($7 million) in political funds in the run up to the 2013 election at the request of his older brother, prime minister Najib Razak.

The scandal has been a further blow to confidence in the probity of Malaysia’s financial system, raising concerns about transfer of illicit funds, bribery and corruption. The prime minister has been accused, along with others, of siphoning funds from the state-run fund 1MDB. That matter has led authorities in Switzerland, Singapore and other locations to initiate investigations. Swiss authorities have frozen accounts in several cases.

According to a report in the Straits Times (of Singapore), Nazir told a press conference: “My brother asked for some help and I agreed after assessing that it does not involve anything illegal or misusing of my position at CIMB or any inappropriate use of CIMB resources.”

Kuala Lumpur-headquartered CIMB said that Nazir "will take a voluntary leave of absence from his positions as chairman of CIMB Group and director of CIMB Bank, with effect from close of business today [18 April] till the completion of an ongoing board review on the banking activities relating to his personal account, first reported by the Wall Street Journal on 31 March 2016.”

In a statement on CIMB's website, Nazir said: “The reputation and well-being of this banking group has always been my utmost priority. Unless I am completely absent from the company during this period, this institution would not be practising the highest standards of corporate governance that we want to stand for, and I would be undermining what I have described as my utmost career priority."

Zainal Abidin Putih, senior independent director and chairman of CIMB Bank, said: "This decision was taken voluntarily by Nazir. The board respects and accepts his decision as having served alongside Nazir on the board, the members have always been convinced that he upholds the highest standards of corporate governance."

The board's review started on 5 April 2016. It has appointed an independent and external audit firm, Ernst & Young, to assist with the review. The review is expected to complete in a few weeks' time, CIMB said.