He is the brother-in-law of Zulkifli Abdul Khir, who tops the list of the Federal Bureau of Investigation's most wanted terrorists.
And even after the release of Taufik Abdul Halim from an Indonesian prison, the Malaysian police will continue to monitor him closely, The Star reported.
Taufik returned to Malaysia on Wednesday night after spending 12 years in jail there. He was among 350 former Jemaah Islamiah members released from Indonesian prisons after being granted a pardon from President Joko Widodo.
Although there are no other Malaysians among those released, the police is on alert to prevent any of them from entering the country, the report said.
After he landed at the Kuala Lumpur International Airport, Taufik was whisked away by police and later interrogated by the Special Branch Counter Terrorism Division. He was then taken to Johor.
"He appeared calm and was grateful to have come back to Malaysia. He was asked if he had repented from his previous acts," The Star quoted a source as saying.
The source also revealed that Taufik was able to return home following a special arrangement with Indonesian authorities.
The source said there was "special interest" in him because he has connections with Zulkifli, better known as Marwan.
On Thursday, Home Minister Dr Ahmad Zahid Hamidi said action would be taken against Taufik if he had committed crimes in Malaysia.
He was jailed for attempting to blow up a shopping mall in Jakarta in 2001.
Taufik, a Universiti Teknologi Mara graduate, gained notoriety following his involvement in Kumpulan Mujahideen Malaysia's heist at Southern Bank in Petaling Jaya in 2001.
The stolen loot was used to fund terrorist groups in Jakarta and Ambon. He was also previously held under the Internal Security Act for two years.
Meanwhile, five suspected Islamic State of Iraq and Syria (ISIS) militants from Malaysia returned to the country last week, the New Straits Times reported.
Three of them were arrested and the other two are still at large.
The authorities told the newspaper that the two men are under surveillance, amid concern that they could become recruiters for ISIS.
The three Malaysians claimed during interrogation that they returned as they were unhappy about fighting alongside different militant groups in Syria, with the slightest disagreements at times leading to gunfights.
This article was first published on November 16, 2014.
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