Noshad Mohammed was arrested by the police on Wednesday at the Abeid Amani Karume International Airport on his way to Dubai.
Acting police commissioner for Zanzibar, Juma Yussuf told journalists that the trader was found with gold together with $235,000 and € 57000.
The Zanzibar acting police boss said police detectives were suspicious of his looks and started searching his luggage where he was found in possession of such a big wealth.
“We are still holding him because we want to question why he has decided to travel with such a huge amount of money which is against the law,” said the acting commissioner.
He added that moving with such amount of money makes the government lose revenue.
According him, moving with such an amount of money was also dangerous to his life.
On the gold, the commissioner said it is likely that the suspect has violated mining laws of the country, saying the laws of the country require that anyone who is apprehended with such offence must be taken to court within 24 hours.
He added that the police has a long way to conduct investigations saying when they are over the suspect will be taken to court and if he is innocent he will be set free.