The joint operation is being conducted by the UK's HM Revenue & Customs (HMRC), the Guernsey Border Agency, and the Manx and Cheshire Constabularies.

An Isle of Man police spokesman said the investigation was looking into a suspected £21m money laundering fraud.

He added that a number of other arrests have been made in the UK and Guernsey.

Police refused to provide any further details about the person who has been arrested, including their gender or age.

Inspector Derek Flint said: "There will be considerable police activity in and around Hill Street in Douglas and Manor Park in Onchan.

"The public should not be alarmed to see officers from HM Revenue & Customs and the National Crime Agency who are supporting the searches on the Isle of Man.

"A considerable number of staff have been deployed to the various addresses with a view to minimising the time it takes to search each address and reduce the impact on businesses and staff in and around those premises".