Former Labour Party candidate Joe Sammut is being held for questioning by the police's Economic Crimes Unit over the registration of Libyan companies in Malta.
The Malta Independent is informed that in the past month more than 850 Libyan companies were registered in Malta, with some belonging to people who were close to former leader Muammar Gaddafi.
In the coming hours a number of Libyans are expected to be arraigned.
Mr Sammut was mentioned last Tuesday in court when Arab Ali Khalefa, a Libyan man, admitted in court that he had given Mr Sammut false details to help him set up a company in Malta.
In 2011, during the Libya Revolution, the Mosta based accountant was mentioned for his close connections with the Gaddafi family and their money.
Earlier this week this newsroom sent questions to the Home Affairs Ministry and asked them about Libyans who are creating false companies to obtain a residence permit.