Lloyds TSB said it would defend itself “vigorously” this morning after US prosecutors filed a $130 million (£64 million) lawsuit accusing the UK bank of knowingly helping to launder the proceeds from a large securities fraud.

In a statement, Lloyds TSB said: "We do not believe there is any basis for this action so we are disappointed that the US Government has commenced proceedings.

"We intend to defend the action vigorously and are confident the bank’s stance will be vindicated."

Last night US prosecutors filed civil charges against the bank, seeking up to $130 million in damages over allegations it violated US money laundering charges, the US Attorney’s office in Manhattan said in a statement.

According to a statement from the US Attorney for the Southern DIstrict of New York, the lawsuit accuses Lloyds TSB of helping Lycourgos Kyprianou, the former chief executive of AremisSoft, to launder tens of millions of dollars following a securities fraud at the Nasdaq-listed software company.

Mr Kyprianou, who has been identified by US prosecutors as an international fugitive, was charged with securities fraud and money laundering offences in June 2002 over his alleged role in an insider-trading fraud that artificially boosted AremisSoft’s share price.

AremisSoft filed for bankruptcy in March 2002.

US prosecutors have also accused the Bank of Cyprus of helping Mr Kyprianou and are seeking $162 million in the same lawsuit.

Bank of Cyprus said it "acted according to the law at all times, and is determined to vigorously contest all allegations of wrongdoing."

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