Authorities have raided several companies over the case since late last year, and six bank accounts belonging to an unidentified suspect and his family members have also been seized.
Details of the case have not been disclosed, but it is understood to focus on payments purportedly made into the bank account of a senior army officer.
The Malaysian Anti-Corruption Commission (MACC) announced a series of detentions in a statement late Wednesday but did not name the suspects.
But local media quoted MACC Chief Commissioner Azam Baki as confirming that former army chief Muhammad Hafizuddeain Jantan was arrested along with his two wives.
Hafizuddeain had been placed on leave in late December pending an investigation into his conduct.
A married couple were also among those detained, according to MACC.
"MACC is committed to carrying out investigations with full transparency and professionalism," the statement said.
Azam did not immediately respond to AFP queries about the identities of those detained.
The anti-graft agency also foiled an attempt to move 2.4 million ringgit ($591,000) in cash linked to the probe, according to national news agency Bernama.
On Wednesday, Bernama quoted Azam as saying that the money was seized when an individual linked to the case was caught attempting to move it to another location.
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