Former British ambassador to the US Peter Mandelson has been arrested by London police on suspicion of misconduct in public office.
The Metropolitan Police said the 72-year-old was taken to a London police station for interview.
The former Labour minister has been accused of passing sensitive information onto paedophile financier Jeffrey Epstein during his time as business secretary.
Two of his properties were previously searched by police in connection with the allegations, which surfaced following the US Department of Justice's document dump related to Epstein last month.
As part of the so-called Epstein files, emails from 2009 appear to show Mr Mandelson pass on an assessment by Gordon Brown’s adviser of potential policy measures including an "asset sales plan".
He also appeared to discuss a tax on bankers’ bonuses and confirm an imminent bailout package for the euro the day before it was announced in 2010.
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In a statement confirming the arrest, police said: "Officers have arrested a 72-year-old man on suspicion of misconduct in public office.
"He was arrested at an address in Camden on Monday, 23 February and has been taken to a London police station for interview.
"This follows search warrants at two addresses in the Wiltshire and Camden areas."
The UK Cabinet Office previously referred material to police in connection with the probe into Mr Mandelson after an initial review of the Epstein files suggested "safeguards were compromised".
Footage shown by broadcasters showed a plain clothed police officer leading Mr Mandelson out of a house.
He then gets into the left rear seat of a waiting unmarked Ford Focus police car.
The male police officer then gets into the right rear passenger seat.
A female police officer gets into the front seat of the car before it is driven away.
