The former CEO of an Austrian bank was arrested Tuesday in the United Kingdom on criminal charges for his alleged role in a massive money laundering scheme involving Brazil-based global construction conglomerate Odebrecht.

Peter Weinzierl, of Austria, was arrested at the request of the United States, the Department of Justice stated. Alexander Waldstein, a former officer at the Austrian bank, remains at large. Both also served as board members of an Antiguan bank.

Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...