VANCOUVER - Vancouver police have busted what they say is a bawdy house, despite a court ruling last week that struck down Canada's prostitution laws.

Police announced Wednesday that Jasmine Mangat, 32, and Vanessa Alejandrina Hernandez, 30, have each been charged with keeping a bawdy house, living on the avails of prostitution and procuring a person into the sex trade.

The women were arrested after an investigation into a health centre where police allege sexual services were exchanged for money.

Their arrest comes one week after the Ontario Superior Court ruled provisions that effectively criminalize prostitution are unconstitutional and put sex-trade workers in danger.

The federal and Ontario governments have said they will appeal that decision.

Vancouver police spokesman Const. Lindsey Houghton said at a news briefing the force won't stop prosecuting such offences.

"We're aware that there are some court challenges to some prostitution offences in other provinces but that has absolutely no effect on how we're doing business right now," he said.

"Until the Parliament of Canada strikes those offences from the Criminal Code, we will continue to enforce them."

Police say Mangat was the owner of the health centre called ISHQ. Hernandez allegedly was the manager.

Officers were tipped off about the business a few months ago and raided it on Sept. 30.

They seized several pieces of evidence, including cash and computers.

Mangat and Hernandez have been released and warned not to have contact with each other or any employees.

The women are due to appear in court next Wednesday.

Houghton said more charges are still possible.

A website address redirects to another page that says it is a VIP escort agency that opened in 1999.

"We combine 5 star entertainment, emotional intimacy and total satisfaction," the website says.

A Twitter posting the day before the police raid indicated the company was looking for escorts.

"We are currently looking to hire two East Indian hotties to be a part of our team! Apply today!"

The court challenge of Canada's prostitution laws was brought forward by an Ontario dominatrix.

In her Sept. 28 decision, Justice Susan Himel wrote Canada's prostitution laws force sex-trade workers to choose between their liberty interest and their right to security of the person as protected under the Charter of Rights and Freedoms.

In announcing the federal government's appeal of the decision, Justice Minister Rob Nicholson said prostitution harms individuals and communities.

The judgment is subject to a 30-day stay during which the law remains in place. The federal government can seek an extension of the stay period.

The federal and Ontario governments say they will request that the appeal court stay the judge's decision and allow the current prostitution laws to remain in effect until an appeal can be heard.