Bahrain detained a government official, identified in the kingdom's media as a state minister, for questioning on charges of domestic and international money laundering, police said on Monday.

"An official has been detained on charges of committing money laundering transactions domestically and abroad," according to a statement which said the official was arrested late last week and his file transferred to prosecutors.

"The ministry (of interior) noticed the events in early 2009, and therefore monitored the official's activities, meetings and communications closely and secretly," it added, without saying how much money was involved.

The police statement did not name the official but local media identified him as Mansour bin Rajab, a state minister without portfolio who was released for health reasons after questioning.   

Bin Rajab has denied in media statements any involvement in money laundering but confirmed he had been summoned for questioning. "The Public Prosecution merely asked about issues relating to my ministry and employees," Gulf Daily News quoted him as saying.

Bahrain, which hosts the headquarters of anti-money laundering watchdog Mena Fatf, issued an anti-money laundering law in 2001 but until now there had been no such high-profile investigations or arrests among senior officials. - Reuters