Propaganda materials and huge amount of foreign currency have been seized from the LTTE members arrested under the Immigration Act, Inspector-General of Police Khalid Abu Bakar said in a statement.
The three members, who hold UNHCR refugee cards and were staying in Malaysia since 2004, were arrested from different locations in the central Selangor state by the Special Branch's Counter-Terrorism Division (CTD) on May 15.
The men are suspected of attempting to revive the LTTE activities, especially at international level, Khalid said.
"In the operation, police also found and seized LTTE propaganda materials, media equipment as well as foreign currencies from 24 nations equivalent to RM20,176.53," Khalid was quoted as saying by the New Straits Times.
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"The suspects had been using UN High Commissioner for Refugees cards here to avoid from authorities' action.
"Police will continue to work together with the UNHCR office here to ensure that their identity cards are not exploited by terrorists to hide or conduct any terrorism act, whether against this nation or others," he said.
Colombo accuses the Tamil diaspora of being behind the third UNHRC resolution which prescribed an international probe into the island's human rights record during the last phase of the war in 2009.
LTTE supremo Velupillai Prabhakaran was killed by the Sri Lankan military in 2009, when the nearly three-decade of armed conflict ended.
Last month, Sri Lanka had announced the death of three key LTTE operatives attempting to revive the outfit in the Tamil-dominated north of the country.
About 40,000 Tamil civilians were killed by the end of the separatist war, rights groups and experts have said.
The plot involved a plan to attack foreign consulates in Chennai and Bangalore.