One of the eight members of FIFA's financial watchdog has been arrested by police on suspicion of corruption and money-laundering.

Canover Watson, a businessman from the Cayman Islands and vice-president of the Caribbean Football Union, has denied the allegations.

Watson sits on FIFA's audit and compliance committee, a body set up in 2012 to "ensure the completeness and reliability" of the world governing body's finances. He is a close friend of FIFA vice-president Jeffrey Webb, a fellow Cayman Islands resident and the president of the CONCACAF confederation of countries from central and North America and the Caribbean.

The 43-year-old was arrested by officers from the Royal Cayman Islands Police Anti-Corruption Unit and has been released on bail to report back to police on 29 September.

The arrest follows following a police investigation into a hospital swipe-card billing system in the Cayman Islands.

According to a police statement, Watson's arrest was for "suspicion of breach of trust contrary to section 13 of the Cayman Islands Anti-Corruption Law, as well as abuse of public office... and conflict of interest", as well as "suspicion of money laundering contrary to section 133 of the Proceeds of Crime Law".

A statement from Watson to media in the Cayman Islands said he denied any wrongdoing.

The statement said: "I make this brief statement following my arrest in relation to suspected offenses contrary to the Anti-Corruption Law.

"The allegations are denied. In due course, at the proper time and in the appropriate forum, I look forward to setting out my position in greater detail. For present purposes since the police investigation is ongoing, I have been advised by my attorneys that it would be inappropriate for me to make further comment."

FIFA was unavailable for comment.