Police have searched a bank in the Bosnian Serb part of the country that is suspected of laundering money for the Bosnian Serb president.

A police statement on Tuesday said that prosecutors had ordered the search of the Pavlovic International Bank in connection with money laundering but refused to reveal more details.

An opposition party filed a criminal complaint against Bosnian Serb President Milorad Dodik, claiming he bought a 750,000-euro ($805,000) villa in Belgrade, Serbia, and received a loan in the same amount from the bank a year later.

According to an earlier statement from the Serb Democratic Party, the bank's owner then paid off Dodik's loan in return for unspecified favors.

The bank didn't immediately comment on the search. Dodik has previously denied the allegations.