Dressed in a dark blue suit, Najib appeared calm as the charges were read out at the Kuala Lumpur high court.
On the three charges, Najib was alleged to have received RM27 million, RM5 million and RM10 million, respectively, which were proceeds from unlawful activities, via Real Time Electronic Transfer of Funds and Securities (Rentas) into two AmIslamic Bank Berhad accounts of his bearing the numbers 2112022011880 and 2112022011906.
Najib is facing a long time behind bars if found guilty - the money-laundering charges carry maximum jail terms of 15 years each, while the other four charges carry sentences of 20 years each.
1MDB was set up by Najib in 2009 to spur Malaysia's economic development.
High Court Judge Mohamad Nazlan Mohd Ghazali said a decision on when the trial begins, and on a gag order issued last month to stop public discussion of the case, would be made on Friday.
The yacht which was seized by Indonesian authorities a year ago, was purchased by Malaysian financier Jho Low in 2014, a close family friend of Najib.
Lokman rallied a group of about 50 supporters outside of MACC headquarters last month to protest as Najib was brought in to be arrested.
"The charges are related to the SRC International case", it said in a statement.
Mr Najib, who has consistently denied any wrongdoing, and his allies are accused of plundering billions of dollars from 1MDB to buy everything from United States real estate to artworks.
Money allegedly siphoned off from SRC represents only a small fraction of the billions of dollars misappropriated from 1MDB, according to lawsuits filed in the USA courts by the Department of Justice which investigated the scandal.
Police also seized jewellery and valuables valued at more than 1.1 billion ringgit (£208m) from properties linked to Mr Najib.
On Tuesday, a luxury yacht allegedly paid for with money stolen from 1MDB arrived outside Kuala Lumpur after being handed over by Indonesian authorities.