A former senior employee of the Commonwealth Bank has been arrested and charged with bribery after the bank reported the finding of an internal investigation to NSW police.

The 61-year-old IT executive, who was not named by police, was arrested in his Surry Hills home in Sydney yesterday.

NSW Police said the United States’ Federal Bureau of Investigation (FBI) is involved in the investigation.

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The case began in early 2015, when CBA contacted police after internal investigators uncovered some “suspicious payments” that had been deposited into the bank accounts of two of the bank’s senior IT staff, both Sydney-based US nationals.

The unnamed 61-year-old man was refused bail this morning.

In court, detectives will allege that two of the bank’s former employees were involved in a “corrupt relationship with a now publicly-listed overseas technology provider.”

Police will contend that the managers granted the US-headquartered IT company a lucrative contract without putting it to public tender. In exchange, the managers allegedly received payment.

NSW Police said more than US$1.5 million in suspected corrupt payments have been frozen by officers from the Fraud & Cybercrime Squad.

The investigation by Strike Force Drawl continues, with police particularly keen to speak to another one of the bank’s former senior IT managers, who is currently overseas. Strike Force Drawl detectives have engaged officers from the Federal Bureau of Investigation (FBI) to assist with their inquiries.

CBA this morning confirmed that the 61-year-old was a former employee of the bank.

“Commonwealth Bank confirms that a former executive is appearing before the NSW Court this morning. CBA reported this matter to the NSW Police and we will continue to fully cooperate while the investigation continues.

“We have no tolerance for any illegal activity by any employee and we take every situation seriously. We confirm that no customer has been affected by this matter.

“It is not appropriate to further comment while this matter is before the court.”

The Commander of the Fraud & Cybercrime Squad, Detective Superintendent Arthur Katsogiannis said of CBA’s role in the investigation: “I’d … like to publicly commend the staff and investigators at the bank, who have provided invaluable insight and support to detectives working this case.”