Fraud officers have launched an investigation at Bermuda Commercial Bank into allegations that a former employee stole more than $1 million, The Royal Gazette can reveal.

Commercial Crime Unit detectives arrested a 41-year-old Devonshire woman last month after management at the bank became alerted to a serious of suspicious transactions.

The Royal Gazette understands management at the bank discovered the irregular transactions during an internal audit and called in the Commercial Crime Unit.

Detectives arrested the woman, who has since resigned from her position as a global custody administrator at the Commercial Bank, although she has not yet been charged with any offence.

Several informed sources have told The Royal Gazette the sum alleged to have been stolen is more than $1 million.

A Police spokesman confirmed last night: "A 41-year-old Devonshire woman has been arrested in connection with a report of a theft at Bermuda Commercial Bank. The investigation is still ongoing.''

Commercial Bank president and chief operating officer Timothy Ulrich said last night: "This matter is in the hands of our attorneys and the governmental authorities and those authorities and our attorneys need to be able to proceed with their investigation or legal action and the outcome will ultimately be determined by the courts.''

Mr. Ulrich added: "It is our view that all client accounts and funds are secure.''

A well placed source said yesterday: "I know the fraud squad officers were called in and it seems a substantial amount of money has gone missing from an account that she administered. I was very surprised because she was very popular at the bank."