More than $260,000 was seized and two people arrested at an apartment in Neutral Bay yesterday as part of a major money laundering investigation.

At around 2pm yesterday detectives from the Organised Crime Squad’s Money Laundering Unit stopped a man and a woman as they left an apartment on Yeo St.

The pair - a 49-year-old woman from Neutral Bay and a 45-year-old man from St Ives - were found to be in possession of $261,450.

They were both arrested and taken to North Sydney Police Station before officers executed a search warrant at the Yeo St apartment.

Isabelle Walker, who works across the road from where the arrests happened outside 57 Yeo St, said that there was a lot of yelling before the arrests.

“There was a lot of money being taken out of the bags,” she said.

“The female appeared to have a panic attack and was treated by an ambulance that arrived, but then seemed to be okay.”

Officers allegedly seized a small amount of methylamphetamine, a money counter, mobile phones, computers, scales and drug packaging from the apartment.

Police also seized $2995, as well as more than 10,000 in Chinese Yuan, mobile phones and computers at a property on Lynbara Ave in St Ives.

A 30-year-old man from Homebush was arrested outside after detectives allegedly located $30,000 and a small amount of heroin in his car.

The man and woman arrested in Neutral Bay were each charged with money laundering, knowingly dealing in the proceeds of crime and intent to conceal. They were refused bail and appeared in Central Local Court on Thursday where the woman was again refused bail to reappear on Monday.

The man was granted conditional bail to next appear in the Downing Centre on December 16.

The 30-year-old man arrested in St Ives was charged with drug possession and dealing in the proceeds of crime.

He was granted conditional bail to appear at Hornsby Local Court on November 12.

The Commander of the Organised Crime Squad, Detective Superintendent Scott Cook, said money laundering was a serious crime that carried serious penalties.

“Money laundering offences carry penalties of up to 20 years in prison,” he said.

“It’s a serious crime that warrants serious attention and that’s precisely what we’re giving it.”

“The Organised Crime Squad’s dedicated Money Laundering Unit is working closely with our law enforcement partners and other government agencies to hit organised crime groups where it hurts — we’re going after their cash and we plan to seize a lot more of it in the months ahead.”