Malawi's ex-president is arrested
He was escorted on Thursday morning from his home in Blantyre to the ACB's offices for questioning about financial transactions during his time in office.
A spokesman for Mr Muluzi's United Democratic Front (UDF) party said the arrest did not come as a surprise, and called it "political persecution".
Mr Muluzi fell out with his successor Bingu wa Mutharika after polls in 2004.
ACB Director Gustave Kaliwo confirmed in an earlier interview that "we have some issues Mr Muluzi needs to explain regarding some of his financial dealings while in power".
In October, anti-corruption agents raided Mr Muluzi's home and removed papers.
Mr Muluzi has denied any wrongdoing.
Crowds gather
The BBC's Raphael Tenthani in Blantyre says Mr Muluzi was not handcuffed when he left his house, and was allowed to travel in his personal car to the ACB's offices.
Our correspondent says that as news of the arrest has spread, a crowd of curious onlookers and supporters has gathered outside the ACB's offices.
Mr Muluzi's lawyer, Shabir Latif, confirmed to the BBC that the ACB had served an arrest warrant on the former president. But he did not give details of the charges.
The UDF's publicity secretary Sam Mpasu said the development was "a continuation of political persecution".
Mr Muluzi stepped down as president after serving two terms in office in 2004.
He hand-picked Mr Mutharika to run for president on the UDF ticket.
But eight months after his victory, the new president resigned from the UDF over what he says was hostility to his anti-corruption campaign.
In April, Vice-President Cassim Chilumpha, who is close to Mr Muluzi, was arrested and charged with treason.
He is on bail under strict conditions and may not leave his house without permission from the president.
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