Watson, a member of FIFA's Audit and Compliance Committee, a body set up to "ensure the completeness and reliability" of its finances, was arrested in the Cayman Islands on suspicion of corruption and money laundering.
The Caribbean Football Union (CFU) vice-president, who sits on FIFA's Audit and Compliance Committee, denies all allegations, which are said to be related to an investigation into a hospital swipe-card billing system in the Cayman Islands.
In a statement released to Cayman media, Watson said: "I make this brief statement following my arrest in relation to suspected offenses contrary to the anti-corruption law.
"The allegations are denied. In due course, at the proper time and in the appropriate forum, I look forward to setting out my position in greater detail.
"For present purposes since the police investigation is ongoing, I have been advised by my attorneys that it would be inappropriate for me to make further comment."
And Domenico Scala, president of the Audit and Compliance Committee, stated that no measures would be taken by FIFA until further information is received from Watson.
In a statement released to Perform, Scala said: "In agreement with the Ethics Committee we have asked Canover Watson whether he can share with the Audit and Compliance Committee any additional information. Once we have more information we will consider appropriate measures."
