Police in New York say the head of the International Monetary Fund, Dominique Strauss-Kahn, has been charged with a criminal sexual act, attempted rape and unlawful imprisonment.
The charges relate to an alleged assault on a maid in a room at his hotel in Manhatten reports the BBC.
His lawyer says he will plead not guilty to the charges.
Dominique Strauss-Kahn, 62, is one of the world's top international diplomats responsible for handling financial crises.
Deputy Commissioner Paul Browne, of the New York Police Department, says he was detained as he was about to leave the United States.
Mr Strauss-Kahn was taken into custody at John F Kennedy International airport after boarding an Air France plane bound for Paris.
Mr Strauss-Kahn, a Frenchman who has been in charge of the IMF since November 2007, is widely considered in France to be a potential Socialist Party challenger to President Nicolas Sarkozy in next year's presidential election there.
Mr Strauss-Kahn has faced controversy before. In October 2008, he apologized for "an error of judgement" for an affair with a female IMF economist who was his subordinate.
An inquiry cleared him of harassment and abuse of power, although he was warned by the fund's board of member countries against further improper conduct.