Peter Mandelson's ties to Jeffrey Epstein were investigated by a crime agency months before he was appointed as the US ambassador.
The relationship between the ex-Cabinet minister and the convicted paedophile was assessed by the National Crime Agency back in 2024.
Lord Mandelson was officially confirmed to take on the top diplomatic role in December of that year.
A human rights activist reportedly met with the police bosses, holding several meetings to review the allegations laid against one of Labour's biggest names.
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Eventually, the allegations were swept under the rug after the authorities deemed the accusations were only based on hearsay.
They said such information was not sufficient to not open a full investigation, the Financial Times reported.
The allegations were then said to have been put to Downing Street after the claims were provided to the NCA.
Lord Mandelson has repeatedly denied any wrongdoing and has said that he regrets his relationship with the child sex offender.
A human rights activist reportedly met with the police bosses
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Last week, it was revealed the ex-spin doctor failed security vetting, but ascended to the lofty role anyway.
The Prime Minister was subsequently hit with a barrage of criticism from MPs across the House of Commons – including many of his own.
Sir Keir, who has dismissed calls to resign, was accused of throwing Foreign Office officials under the bus after the PM shirked responsibility to officials over Lord Mandelson's vetting.
Earlier this year, he was warned the New Labour titan's relationship with Epstein posed a "reputational risk" before his appointment.
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Lord Mandelson was the subject of an NCA probe in 2024
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He had been told the appointment posed a "general reputational risk".
A vetting file on the disgraced peer indicated that contact with Epstein started in 2002 and persisted after he was convicted of paedophilia in 2008.
Lord Mandelson also stayed at Epstein's house while the sex offender was behind bars a year later.
The grandee's ties with Russia and China were also flagged.
Lord Mandelson was booted from the high-flying role after Downing Street declared that they had been made aware new information about his relationship with Epstein.
In February, the peer was arrested from his home on suspicion of misconduct in public office.
The police have said their investigation would "take some time".
GB News has approached the NCA and No10 for comment.
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