Kuala Lumpur: The stepson of former Malaysian prime minister Najib Razak, has been charged with money laundering, alleging he misappropriated $US248 million ($353 million) from a Malaysian government state fund.

Riza Aziz, a Hollywood producer whose firm Red Granite Pictures was behind the Oscar-nominated film The Wolf of Wall Street, was charged with five counts of money laundering.

Riza Aziz, right, Hollywood producer and stepson of Malaysian former PM Najib Razak, walks into the Kuala Lumpur High Court on Friday. Credit:AP

Prosecutors alleged Riza received the money as a result of misappropriation of funds from 1Malaysia Development Berhad (1MDB).

Riza pleaded not guilty to all the charges.