Three people have been arrested on suspicion of tax fraud and money laundering after police seized £150,000 in cash in dawn raids.

A 37-year-old man and a 30-year-old woman from Potters Bar and a 39-year-old man from Peterborough were arrested on Friday by more than 70 HM Revenue and Customs (HMRC) officers.

All three are suspected of being involved in an alcohol diversion fraud, worth up to £80million a year in lost duty.

The two men were arrested on suspicion of tax fraud and money laundering offences, while the woman was arrested for money laundering offences.

A total of £150,000 in cash, computers, a taser gun and personal and business records were seized during property searches in north London, Hertfordshire and Cambridgeshire.

David Margree, assistant director of criminal investigation at HMRC, said: “HMRC will take all necessary steps to ensure that the tainted profits amassed by these professional crime gangs will be pursued and recovered. We suspect those arrested today have concealed the money for their personal benefit at the expense of the UK’s economy and honest taxpayers.”

All three defendants have been bailed until April 2015.