UK Currency Trader Arrested

Detectives from the City of London Police`s economic crime unit arrested the 60-year-old director of GFX Capital Markets Ltd. in Essex.

Police in London's financial district said they have arrested the head of a currency trading fund on suspicion of money laundering.

Detectives from the City of London Police's economic crime unit arrested the 60-year-old director of GFX Capital Markets Ltd. in Essex on Monday.

The trader, who police did not name, was questioned under financial regulation laws as part of an ongoing inquiry into trading at GFX.

The fund is thought to have held investments worth about 40 million pounds, a police source said.

Detective Constable Simon Cordell, of the City of London Police, asked GFX clients to contact him with details of their investments and any losses.

He posted a questionnaire on the force's website, www.cityoflondon.police.uk, asking people to give him information about GFX bank accounts where they sent money.

A spokeswoman for the Financial Services Authority, which regulates the industry, said it was aware of the case and was working with police.

Media reports said GFX Capital is believed to have ceased trading recently. No one at their London offices could be reached for comment.