The Financial Services Authority (FSA) has stopped a Northern Ireland brokerage from trading because of concerns over money laundering.

The FSA said it was working with the Police Service of Northern Ireland (PSNI) on an investigation into Belfast-based Northern Ireland Insurance Brokers Ltd.

The PSNI investigation "has already identified funds of approximately £8 million sterling [€12.5 million\] which appear to have been laundered through the firm," said the FSA. The police expect that their investigation will eventually lead to criminal charges being made, said the FSA.

The directors of the firmwere interviewed by police earlier this year, but released without being charged pending further inquiries.Their company also has an office in South Armagh.

A spokesman for the brokerage said it denied any wrong doing."The firm will be robustly challenging the allegations made by the FSA," he said.

A statement from the company said the allegations were entirely without foundation. "All allegations put by the police were roundly and comprehensively rebutted and no charges have been made," the company said.

The FSA and other authorities have geared up their fight against financial crimes in the wake of the September 11th attacks, amid allegations they were funded in part by illicit financial transactions.