Gardai in Louth arrested a suspect during an investigation into alleged VAT carousel fraud money laundering worth €29 million.

Detectives from the Garda National Economic Crime Bureau (GNECB) arrested the suspect on Thursday October 17 as part of an ongoing cross-border investigation into money laundering.

They were arrested and detained and questioned at Dundalk garda station. He was later released without charge.

Gardai have arrested another suspect in relation to the €29 million VAT money laundering carousel fraud investigation. Pic: Artur Widak/NurPhoto via Getty Images)

Gardai are now preparing a file to send to the Director of Public Prosecutions (DPP).

It is believed that the organised crime group based at the border is transferring large amounts of money to overseas bank accounts.

This is the third arrest in the investigation which has been taking place since September 2016.

The suspect was detained in Dundalk garda station in relation to VAT carousel fraud. Pic: Artur Widak/NurPhoto via Getty Images)

In May 2019, a woman in her 40s was arrested as part of the investigation in Louth.

She was detained for questioning under provisions connected with organised crime legislation. The woman was subsequently released without charge.

A second person was arrested in August 2019.

Limerick Off-Licence
Gardai have been investigating VAT carousel fraud at the border since September 2016. Pic: Shutterstock

So-called VAT carousels happen when people say they have moved goods between jurisdictions and then apply for VAT refunds.

However, if no goods are transported or the goods don’t exist, this means that the VAT that was never paid is being refunded.

In September 2017, fifteen properties were searched across four provinces by The Garda National Economic Crime Bureau.

Kildare House Fire
Gardai are investigating €29 million euro VAT carousel fraud. Pic: Shutterstock

A large volume of both digital and documentary evidence was seized.

This investigation is being led by The Garda National Economic Crime Bureau (GNECB) and is supported on both sides of the border by CAB, the Garda National Drugs and Organised Crime Bureau, the Revenue Commissioners, the PSNI, the National Crime Agency and Her Majesty’s Revenue and Customs Agency.

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