The premier of the British Virgin Islands (BVI) was arrested on 28 April in a sting operation in Miami on charges of conspiring to import cocaine into the US and money laundering.
The BVI governor, John Rankin, confirmed in a statement that Andrew Fahie had been arrested on Thursday morning, saying: "I realise this will be shocking news for people in the territory. And I would call for calm at this time."
Oleanvine Maynard, the manager director of the Caribbean territory's port authority, and her son Kadeem were also detained in the operation.
In response to the news UK foreign secretary, Liz Truss said: "I am appalled by these serious allegations. This arrest demonstrates the importance of the recently concluded Commission of Inquiry.
"I have spoken to the Governor of the BVI and he will be holding an emergency meeting of the Territory's Cabinet later today. He will set out next steps tomorrow, including urgent publication of the Inquiry's report."
The independent inquiry was established in January 2021 by the Governor of the British Virgin Islands to establish whether there is evidence of corruption, abuse of office or other serious dishonesty that has taken place in public office in recent years, and if so what conditions allowed this to happen.
Rankin said in a statement on 28 April: "It is my duty as Governor to inform you that this morning the Honourable Premier Fahie was detained in Miami on charges related to conspiracy to import a controlled substance and money laundering.
"As this concerns the arrest of a British citizen, the US Government has informed the UK Government of this arrest, as part of the usual process followed when a British citizen is arrested abroad. The UK Government has subsequently informed me as Governor.
"As this is a live US investigation, I have no further information on the arrest nor can I comment any further on it.
"However, what I can confirm is that the arrest was a US operation led by the DEA and is not linked to the Commission of Inquiry report."
He added: "The remit of the Commission of Inquiry focused on governance and corruption, and was not a criminal investigation into the illegal drug trade.
"To avoid unnecessary speculation, I intend to move ahead urgently on publication of the Inquiry Report so the people of the BVI can see its contents and its recommendations in the areas it addresses.
"I will have a call with Minister Milling and the Acting Premier Honourable Natalio Wheatley tomorrow to discuss further engagement between the UK and BVI on this urgent issue.
He continued: "I realise this will be shocking news for people in the Territory. And I would call for calm at this time.
"The Honourable Deputy Premier Natalio Wheatley will remain Acting Premier of the Territory. I will discuss with him and Cabinet the way forward in continuing to support the good governance of the Territory.
"I will provide a further update in due course."