The European Union’s anti-fraud office has initiated a new investigation concerning Peter Mandelson, who was dismissed as the UK ambassador to the US due to his associations with the deceased sex offender Jeffrey Epstein.

The European Anti-Fraud Office (Olaf) has verified that they possess adequate information to commence an inquiry, following a request made by the European Commission two months ago.

Olaf has been tasked with examining allegations of misconduct during Mandelson’s tenure as the European trade commissioner from 2004 to 2008, which includes purported interactions with Epstein during that period.

Although a formal investigation has been launched, Olaf has indicated that it is premature to determine if the probe involves fraud allegations.

Olaf has confirmed that their mandate encompasses all four years, involving both staff and members of EU institutions.

In addition, emails have surfaced from the 2010 eurozone crisis era, suggesting that Mandelson may have alerted Epstein in advance of a €500 billion (£434 billion) bailout package agreed upon by EU governments to prevent the spread of Greece’s financial crisis to other eurozone countries.

While Mandelson has refrained from commenting on the accusations, reports from the BBC suggest that he has denied engaging in any criminal activities and asserts that his actions were not driven by financial gain.

Olaf has stated that all evidence, including digital “IT forensics” where feasible, will be thoroughly examined, although it remains uncertain if new allegations have arisen since February.

Furthermore, any potential criminal aspects will be forwarded to the European Prosecutor’s Office for further investigation.

Earlier this year, separate email communications between Mandelson and Epstein were revealed, prompting a police inquiry into allegations of sensitive market information being exchanged during Mandelson’s tenure as the business secretary in 2009.

Mandelson was relieved of his duties as the UK ambassador to the US in September 2025 following renewed scrutiny into his association with Epstein.