Ontario Superior Court Justice Sean Dunphy reportedly said BMF was “asking for greater powers than the police have”.
“This is taking us into uncharted territory,” he added.
BMF was hoping to use financial documents from the Royal Bank of Canada, Toronto-Dominion Bank, Manulife Financial and Deloitte to pursue private prosecution against Sakto Corporation (Sakto).
The Ottawa-based Sakto was incorporated in 1983 by Jamilah Taib Murray, the daughter of Taib Mahmud, with a gift from her father as initial capital.
BMF and Malaysian conservation activists in Toronto claim that Sakto, which is currently valued at US$250 million, may have accumulated its wealth partly by laundering money from corruption in the Sarawak logging industry.
The allegations however are unproven in court, with both Sakto and Jamilah denying the claims.
In a statement, BMF executive director Lukas Straumann expressed his disappointment with the court judgment.
“We regret this decision and will have to look for new ways to complement our evidence on the Taib family’s unlawful business activities,” he said.
Canadian court rules open hearing for Taib Mahmud-linked case