Frankie Fredericks has been suspended from exercising all rights as a member of the International Olympic Committee (IOC) at an Executive Board meeting here today.
This followed a recommendation from the body's Ethics Commission in light of the "impact on the reputation of the IOC".
It comes after the Namibian was placed under formal investigation by French authorities last week after appearing before a Paris judge.
The investigation into Fredericks, a four-time Olympic silver medallist in the 100 and 200 metres, relates to payments received by his company, Yemi Limited, from a company owned and controlled by Papa Massata Diack.
This was prior to Rio de Janeiro being awarded the 2016 Olympics and Paralympics in October 2009, which Fredericks voted on.
Fredericks has denied any wrongdoing.
"Considering the gravity and urgency of the situation and its impact on the reputation of the IOC, the IOC EB decides to suspend Mr Frank Fredericks from all the rights, prerogatives and functions deriving from his quality as an IOC member," said a statement today.
It was made clear, however, that the Ethics Commission are still "not in a position to make a recommendation on the value of the facts".
The panel, chaired by South Korea's former United Nations Secretary General Ban Ki-moon, also reiterated the "importance of respecting the principle of the presumption of innocence for any person concerned by a criminal investigation".
Fredericks temporarily stepped down from his role as an International Association of Athletics Federations (IAAF) Council member in March.
It came before the IAAF confirmed his provisional suspension in July.
The former sprinter failed in his effort to have the suspension lifted the following month.
Documents provided by American tax authorities showed how Papa Diack transferred $300,000 (£245,000/€284,000) to a Seychelles-based offshore company called Yemli Limited in 2009 through Pamodzi Consulting.
Yemli Limited is linked to Fredericks, who referred himself to the IOC Ethics Commission when the accusations surfaced on March 3.
Fredericks claimed the payment was legitimate and related to his role in the promotion of several athletics events when he confirmed his intention for appeal the provisional suspension.
The accusations against him prompted him to step down as the chair of the IOC Evaluation Commission for the 2024 Olympic and Paralympic Games.
He was replaced by Switzerland's Patrick Baumann.