German prosecutors said police had arrested a Swiss man at Vienna Airport on suspicion of money laundering and tax evasion involving carbon-emissions trading certificates.
The arrest formed part of an investigation into transactions in 2009 and 2010. Buyers imported emissions permits into an EU country without paying value-added tax, then traded them among themselves, adding VAT to the price and claiming tax refunds without remitting the tax.
Frankfurt prosecutors said the 55-year-old Swiss man was arrested by Austrian police on Wednesday while traveling from Zurich to Vienna. He was suspected of belonging to a group involved in emissions trading and tax evasion totaling up to €125 million ($135.8 million).