More than $1 million seized, three arrested, in money laundering investigation

More than one million dollars has been seized by authorities and three people have been arrested after heavily-armed police swooped on homes in Sydney's southwest.

The police operation was part of an investigation into allegations of money laundering and proceeds of crime.

AFP and NSW police with assistance from the Australian Border Force executed eight search warrants in the Bankstown area relating to allegations of money laundering and dealing in the proceeds of crime.

Cash in excess of $1 million was seized by authorities and a further $105,000 in cash was seized at premises associated with the search warrants.

A weatherboard home in Bass Hill on Chester Hill Road was also raided by the joint squad with a heavy police presence filmed in front of the property.

"This activity does not relate to any current or implied threats to the safety of the Australian community and as any investigations are ongoing further details will be provided at a further time," she told AAP.

A 25-year-old Bankstown woman, a 27-year-old Bass Hill man and a 27-year-old Bankstown man were arrested in connection with the seizures. 

The maximum penalty for the offence is 20 years' jail and/or a fine of $252,000. 

The Bankstown woman and Bass Hill man have been granted bail to re-appear in court.

The Bankstown man is still being processed.