Ten Most Important Items on money laundering based on Dutch Case Law

1. Objective Indicators for Money Laundering:

Dutch case law emphasizes the importance of identifying objective indicators of money laundering, such as unexplained wealth, unusual financial transactions, or the use of cash in situations where it is uncommon. Courts consider these factors to establish whether a transaction or asset may be linked to criminal activity.

2. Unexplained Wealth:

A recurring theme in Dutch money laundering cases is the presence of wealth or assets that lack a legitimate source. If there is a money laundering suspicion then it is up to the accused to provide a plausible explanation for the origin of their wealth. If no legitimate explanation is provided, courts may infer that the wealth is derived from criminal activities.

3. Use of Legal Entities:

Case law shows that the use of legal entities, such as shell companies, to disguise the true ownership of assets or funds is a key focus for prosecutors. The courts scrutinize the purpose and activities of these entities to determine if they are being used to launder money.

4. Cash Transactions:

Dutch courts consider large or frequent cash transactions as potential indicators of money laundering. Cases often highlight that the use of cash in contexts where electronic or traceable payments are expected can be a red flag for illicit activities.

5. Structuring of Transactions:

The intentional structuring of transactions to avoid detection, such as breaking down large sums into smaller, less suspicious amounts, is frequently addressed in case law. Courts regard this practice, often referred to as "smurfing," as a strong indication of an attempt to launder money.

6. Financial Investigation Techniques:

The Dutch legal framework permits extensive financial investigations to uncover money laundering. Courts support the use of various investigative techniques, such as financial analysis, asset tracing, and the examination of banking records, to build cases against suspected launderers.

7. Concealment of True Ownership:

Case law consistently addresses the importance of identifying the beneficial owners of assets. Prosecutors and courts focus on situations where individuals attempt to hide their involvement by using intermediaries, nominees, or complex ownership structures.

8. Professional Money Launderers:

Some cases highlight the prosecution of professional money launderers—individuals or organizations that specialize in cleaning illicit funds for others. Dutch courts take these cases seriously, often resulting in severe penalties due to the systemic threat posed by such actors.

9. International Cooperation:

Dutch case law reflects the importance of international cooperation in money laundering cases, especially given the cross-border nature of many financial crimes. The courts frequently deal with evidence obtained from foreign jurisdictions and support coordinated actions with international partners.

10. Effectiveness of Legal Presumptions:

Dutch courts employ legal presumptions, such as when someone is found with large sums of cash or assets that cannot be easily explained. If there is a suspicion of money laundering the suspect can be expected to make a statement about the origin of the object that is suspected to originate from money laundering. If the suspect doesn't give a statement which is 'concrete, more or less verifiable and not highly unlikely in advance', it can be argued that it 'originates from crime'. These presumptions help streamline the prosecution of money laundering cases by compelling defendants to provide credible evidence of legitimate sources for their funds or assets.