Glasgow East MP Natalie McGarry was elected as an SNP member in 2015 but resigned the party whip following the fraud allegations, which she denies, and now sits as in independent.
She was charged by the police last year over alleged fraud relating to potential missing funds from the group Women For Independence, which was set up in the run-up to the 2014 Scottish referendum, and the SNP’s Glasgow Regional Association.
Ms McGarry - who revealed last week that she is pregnant - confirmed her decision not to stand at next month’s General Election on her Facebook page.
She wrote: “It has been a huge honour and a privilege to have served and represented the people of Glasgow East in the House of Commons for the last two years.
“I have, however, decided not to seek re-election and I would like to take this opportunity to thank the many, many local people who have helped and supported me throughout that time.”
Her decision follows the SNP’s national executive committee ruling on Saturday she was ineligible for reselection, a move she said was of “no surprise” to her.
The committee also ruled former SNP MP Michelle Thomson ineligible for reselection.
She was elected for the party in Edinburgh West in 2015 but withdrew from the party whip later that year amid an ongoing police investigation into property deals.
She had already confirmed she will not contest the election as an independent and expressed disappointment with the party’s decision.
She said following the committee decision: “After careful consideration, I have decided not to stand again at this time and I would encourage all the political parties to avoid personal smears and instead focus on what people really want to hear about.”
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