Immigration Department announced on its Facebook page, "The Malaysian Immigration Department would like to confirm that Najib Razak and Rosmah Mansor have just been blacklisted from leaving the country".
He said that he planned to "take a short break to spend time with my family", but did he not mention news reports that said he and his wife were planning to travel to Jakarta, Indonesia, citing the leaked flight plan.
Razak stepped down as leader of his party UMNO and the former ruling coalition Barisan Nasional in a news conference Saturday.
US investigators said Najib's associates stole and looted $4.5 billion from the fund, of which some $700 million landed in Najib's bank account and some $30 million used to buy jewelry for his wife. According to the police, members of Najib's family had been staying at the apartments, but they declined to name them.
The three are leaders of the four parties in Mahathir's alliance.
"Najib has made Malaysia among the 10 most corrupt countries in the world", Mahathir claimed in an interview with The Guardian newspaper, which is based in London.
The announcement comes after he was defeated in general elections on Wednesday by former strongman Mahatir Mohamad, once Najib's mentor.
"Whoever leads a political party and fails during general elections will need to fully accept the moral obligation".
"I urge all UMNO members to unite and support the new leadership".
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The US State Department alleges in civil lawsuits that $4.5 billion was pillaged from 1MDB in an audacious scheme of fraud and money-laundering, and funnelled to the United States where it was used to buy everything from artwork to high-end real estate.
In the latest dizzying development after last week's shock poll results, Mahathir announced Friday that the king had agreed to pardon jailed leading politician Anwar Ibrahim, his former nemesis turned ally.
But he came out of retirement and defected to the opposition in a bid to unseat Najib over allegations that huge sums were looted from sovereign wealth fund 1MDB, which Najib set up and oversaw.
A royal pardon would allow him to run for political office again and potentially become prime minister.
Mahathir sacked him in 1998, and he was subsequently jailed.
Mahathir had promised, if elected, to free Anwar and eventually hand power over to him.
In a ceremony at the National Palace steeped in centuries-old Muslim Malay tradition, Mahathir was officially sworn in as prime minister by Yang di-Pertuan Agong Sultan Muhammad V.
In addition to naming Lim, a former state chief minister, as finance minister, Mahathir also named former Deputy Prime Minister Muhyiddin Yassin as home affairs minister and Mohamad Sabu as defense minister. "What we want is to restore the rule of law. if the law says that Najib has done something wrong, then he will have to face the consequences".