Seven people were arrested in a coordinated police raid in Lanzarote, Alicante, Murcia and Málaga, which was directed against a corruption network.
Among the arrested are former IRA terrorists Leonard Hardy (54) og Dora Maguire (57).
The gang is now charged with money laundering. The gang was involved in smuggling of alcohol and cigarettes and laundering the profits through investment in real estate in Spain.
Leonard Hardy who has participated in a number of terrorist acts in the past, is in custody with bail of 100,000 euros. Dora Maguire must report to the consulate in Ireland, where she takes care of four children.
Police believe that the gang has laundered 10.5 million euros. A spanish lawyer was also arrested.