First Solution Money Transfer was unable to deliver at least 1.7 million pounds to about 2,000 families in Bangladesh, The Times reported, and members of Parliament had expressed concerns to parliament of the actions of the company's directors.

"We can confirm that an investigation is underway by officers from the Financial Investigation team at Limehouse into a money-transfer company," a spokeswoman for London's Metropolitan Police told AFP.

"The investigation follows allegations of financial impropriety."

No arrests have yet been made, she said, declining to confirm the figure cited by The Times.

According to the paper, the directors of the money-transfer company have denied any wrongdoing, and have blamed the collapse on the rapid expansion of the company as well as fluctuations in the foreign exchange market.

First Solution stopped taking orders on June 27 and went into liquidation.