LONDON (AFP) - Britain's Serious Fraud Office announced Wednesday that it has launched a probe into "suspected fraud" at the British operations of Icelandic bank Kaupthing, before it collapsed late last year.

"The Serious Fraud Office is to investigate suspected Fraud Act offences committed within the UK jurisdiction in relation to Icelandic bank Kaupthing, prior to the bank's collapse in October 2008," the SFO said in a statement.

"The SFO is particularly interested in efforts made to attract UK investors to the purportedly 'high yield' deposit account, Kaupthing Edge," it added.

The investigation will focus on whether "misrepresentations or false representation" were used by the bank to attract British customers.

The SFO will also examine the bank's decision-making processes that "appear to have allowed substantial value to be extracted" before the bank had collapsed.

Around 30,000 individuals, companies and organisations in Britain invested their money in Kaupthing Edge accounts, according to SFO estimates.

"This is a complex investigation which crosses numerous jurisdictions," an SFO spokesman added in the statement.

"We have been working closely with the Icelandic Special Prosecutor's Office to ensure that comprehensive and robust investigations are conducted both in Iceland and the United Kingdom and to ensure that there is no duplication of effort. We will continue to do so."

Kaupthing, one of three Icelandic banks nationalised last year amid the devastating global financial crisis, was re-privatised and re-named Arion Bank earlier this month.

At the height of the crisis, Kaupthing's British savings business -- and those of Landsbanki -- were transferred to Dutch bank ING.