Police arrested three men in Yuen Long this morning, neutralising a counterfeit banknote-manufacturing syndicate.

Officers from the Commercial Crime Bureau and Kowloon West's Regional Crime Unit have been investigating the syndicate since early January.

They  raided a village house in Nam Pin Wai at about 3am and arrested three men inside.

They also seized about 3,000 $500 counterfeit banknotes, and some equipment including two three-in-one scanner and printers.

The counterfeit banknotes were of low quality, without any watermarks or security threads.

The men, aged 32 to 40, are being detained.