A man in his 50s has been arrested in connection with an investigation into alleged multi-million euro VAT fraud.

Gardaí say that, since 2016, €29 million has been identified moving through banks accounts linked to several companies here and in the North by an organised crime gang.

Large sums of money were then transferred to accounts in a number of foreign jurisdictions.

The type of fraud in question is known as 'VAT carousel'.

It involves more than one jurisdiction and numerous layers to allow for the alleged movement of goods.

That in turn leads to the state being defrauded of VAT.

Officials say the fraud involves supplier companies, VAT registered entities, customer companies and transport companies.

A man in his 50s arrested on Tuesday is the second person to be held in connection with the investigation.

He is being questioned at Castlrea Garda Station in Co Roscommon under the provisions of Section 50 of the Criminal Justice Act 2007.

Gardaí say the investigation has been ongoing since 2016, with the PSNI and British agencies also involved in the operation.

They say numerous production orders have been served on financial institutions and a "large volume of documentary evidence has been uplifted".

They add that the investigation is ongoing.