A Cardiff man was among 14 people arrested in raids by police investigating a £40 million money laundering scam.

The man, from Rumney, was arrested in the raids carried out by HM Revenue and Customs (HMRC), on suspicion of laundering the proceeds of a multi-million pound alcohol fraud.

Cash totalling £650,000 and five lorry loads of beer and wine were seized in the raids.

HMRC suspects that the group was diverting non-duty paid alcohol and selling it on the UK market.

The fraud is estimated to be worth around £40m in evaded duty and tax and those arrested are believed to have been instrumental in laundering the cash generated from the alcohol fraud.

Alan Tully, from HMRC, said: “This is a major investigation into what we suspect is a well organised and professional attempt to launder the proceeds from a significant alcohol fraud and steal £40m from the UK economy.

“We are committed to stamping out alcohol fraud, which drains around £1 billion from public finances each year, affecting public services and legitimate retailers who have to compete with the illicit market.”

Computers and personal and business records were removed during property searches and the investigations continue.