Money laundering involves concealing or disguising the illegal origin of money or property. Even possessing money derived from crime can already be regarded as money laundering.
Definition of money laundering
According to Articles 420bis to 420quater of the Dutch Criminal Code, money laundering includes:
- Concealing the criminal origin of property or money
- Acquiring, possessing, or transferring such property
- Using money obtained from crimes
Types of money laundering
- Intentional money laundering (Article 420bis) - You are aware of the criminal origin of the money. Maximum penalty: 6 years.
- Culpable money laundering (Article 420quater) - You should reasonably have suspected that the money was illegal. Maximum penalty: 2 years.
- Habitual money laundering (Article 420ter) - Repeatedly laundering money. Maximum penalty: 8 years.
Practical examples
- Depositing drug money in cash into an account
- Investing illegally obtained money in real estate
- Creating false invoices to legitimize black money
- Moving money through international structures
- Using a business as a front for money laundering practices
Money laundering of one's own criminal proceeds
It is also punishable to launder money from a crime you yourself have committed. For example, if you earn money from drug trafficking and spend it, you are guilty of both drug trafficking and money laundering.
Mandatory reporting
Financial institutions such as banks, real estate agents, and notaries must report suspicious transactions to FIU-Nederland. This is a legal obligation to combat money laundering.
Forfeiture of criminal assets
Upon conviction for money laundering, the Public Prosecutor's Office (OM) may file a forfeiture claim to seize the illegally obtained assets.
Frequently asked questions about money laundering
When am I liable for money laundering?
You are liable if you knowingly conceal or use money or property that you know comes from a crime (intentional money laundering). Even if you should have suspected it was criminal proceeds (culpable money laundering), you can be prosecuted. Even mere possession of illegal money can be punishable. The penalty varies depending on the situation and frequency.
Can I unknowingly commit money laundering?
Yes, in the case of culpable money laundering (Article 420quater of the Criminal Code), you do not need to be certain that the money is criminal, but you should have suspected it. Think of accepting an unusually high cash payment without inquiry. The penalty can amount to up to 2 years' imprisonment. Banks report suspicious transactions, which can lead to an investigation.
What happens in case of suspicion of money laundering?
In case of suspicion, the Public Prosecutor's Office (OM) initiates an investigation. You may be arrested and questioned. A conviction can lead to a prison sentence (up to 8 years for habitual money laundering) and forfeiture of criminal assets. A criminal record can also impact employment or travel. It is advisable to seek legal assistance immediately, for example through the Juridisch Loket Westland.
Is money laundering of one's own crime punishable?
Yes, laundering money from a crime you yourself have committed is punishable. For example, if you deposit money from drug trafficking into an account, you commit both drug trafficking and money laundering. This can result in a heavier penalty and forfeiture of the money.
What is the role of banks in money laundering?
Banks and other institutions must report unusual transactions, such as large cash deposits, to FIU-Nederland. If they fail to do so, they risk sanctions. For customers, this can mean accounts are blocked and an investigation is started.
How do I prevent unintentional involvement in money laundering?
Be cautious with transactions that deviate from the norm, such as unexpected large cash payments. Always inquire about the origin of the money and be alert to suspicious situations. If in doubt, seek advice from the Juridisch Loket Westland or a lawyer.