Two people arrested in waste packaging fraud and money laundering probe

Two people have been arrested as part of a waste packaging fraud and money laundering investigation, the Environment Agency (EA) has said.  A man and a women, both 47, were arrested at properties in Penzance, Cornwall, in an early morning operation by the EA and Devon and Cornwall Police on Monday.

The arrests relate to alleged fraud within the Packaging Producer Responsibility system, where EA-accredited reprocessors can sell credits for packaging waste they recycle. Producers must then purchase these credits to pay towards the cost of recycling their packaging.

Investigators believe those involved in this case sold more than £6m in credits but suspect that a large proportion of this reprocessing never took place. It is alleged that the reprocessing figures have been inflated.

Those arrested are also suspected of laundering the money made from this offending. They were released pending further investigation.

Emma Viner, enforcement and investigations manager at the EA's national environmental crime unit, said the arrests were "another important step in our war against waste criminals". "Whether it's defrauding the waste sector or dumping rubbish in our towns and cities, the Environment Agency is working tirelessly to catch those responsible.

We will follow the money and act against those profiting from waste crime." Read more on Sky News:Agency has 'serious questions to answer'Arrests for illegal waste dumpingLiving next to a 25,000-tonne illegal dump The circular economy minister Mary Creagh said the arrests "send a clear message that no stone will be left unturned in our war on waste crime". The EA says criminal gangs are exploiting the credits system of the Packaging Producer Responsibility Regulations to "infiltrate the sector and line their pockets".

Sky News has been investigating the scourge of waste crime across the country, including at Britain's latest large-scale site outside Epping in Essex..