Gardai have stepped up patrols against armed robberies in the lead-up to the Christmas period.
Attention is being placed on Post offices, in particular, as they may become targets of criminal gangs due to the increased amount of cash being held on the premises at this time of the year.
As part of these operations, officers stopped a car which had been seen driving suspiciously in the Harold's Cross area of the city on Wednesday afternoon.
While there was no indication that this car was involved in a post office robbery, officers did discover around €1,000 of various goods including cosmetics, perfumes, children's laptops and razors.
Gardai have still not established whether these goods were stolen but it has emerged that the 20-year-old driver of the car is well known to gardai and is a suspect in a number of robberies.
He is also serving a 20-year-ban for driving offences, which include driving with false driving licences.
The incident unfolded at around 3pm on Wednesday when gardai observed the Volkswagen car in the Harold's Cross area before stopping it at Kimmage Road West in Terenure and arresting the two occupants of the vehicle.
The arrests happened after gardai discovered a balaclava, gloves and other suspicious items . A further search revealed the haul of goods in the car.
The two suspects and a 41-year-old passenger in the car were brought to Terenure Garda Station where they were questioned for a number of hours before being released without charge.
Both men are from the Crumlin area of the capital and while the older man is not very well known to gardai, his younger associate is considered a "serious crime suspect" and has previous convictions for drugs, fraud and driving offences.
Sources say that he is involved with major criminals from the Crumlin area and is actively monitored by gardai
The incident remains the subject of a garda investigation this weekend.
Gardai will continue to increase patrols in the coming weeks with special attention given to cash-in-transit deliveries as well as post offices.
"There is a lot of cash floating around at this time of year," said a source.