Former Mauritius Prime Minister Pravind Jugnauth has been arrested and is facing money laundering charges, the state-run Financial Crimes Commission said early on Sunday.

Jugnauth "is under arrest", FCC spokesperson Ibrahim Rossaye told reporters, adding that he will be detained in Moka detention centre in Moka district in central Mauritius.

The arrest followed searches by FCC detectives of different locations, including Jugnauth's residence, during which they found and seized 114 million Mauritius Rupees ($2.4 million), the FCC said.

Jugnauth's lawyer, Raouf Gulbul, told reporters early on Sunday that his client has been provisionally charged in an alleged case of money laundering. Gulbul said his client denied the charges.

In November, Mauritius' new Prime Minister Navin Ramgoolam announced an audit of the public finances days after questioning the accuracy of some government data compiled by the previous administration.

The country's former central bank governor was detained last month and released on bail after he was charged with conspiracy to commit fraud.

An Indian Ocean archipelago, Mauritius is an offshore financial centre that markets itself as a link between Africa and Asia.