A submachine gun and two assault rifles have been seized by police officers investigating paramilitary crime in Derry.

The Police Service of Northern Ireland said officers also recovered a quantity of drugs, counterfeit clothing and DVDs, around £13,000 in cash, phones, tablets and documentation, more than 7,000 illicit cigarettes and a quantity of hand-rolling tobacco during their searches.

Two men aged 44 and 43 have been arrested and remain in police custody.

The PSNI said seven searches were carried out under the Terrorism Act and PSNI were supported by HMRC officers during the operation.

In a statement, the PSNI also said that gardaí carried out a search in Co Donegal, in which around 60,000 illicit cigarettes, a large quantity of tobacco, a large quantity of counterfeit clothing, DVDs and other items including money were seized.

The gardaí have yet to confirm details of the Co Donegal searches.

District Commander Superintendent Gordon McCalmont said: "The INLA in Derry and Strabane claim to be the protectors of their community but the reality is that they use violence and intimidation to control and exploit those communities.

"Weapons like the ones seized today pose a threat to everyone and anyone who brings guns on to our streets does not care about our community.

He added: "Many INLA members are also involved in a range of criminal money-making rackets including the supply of controlled drugs, blackmail, extortion and money laundering."