The Dutch Approach to Prosecuting Money Laundering

The fight against money laundering is a matter of high priority for the government because it is an important part of combating serious crime. By obscuring the origin of their illegal gains, the perpetrators of crimes are able to stay out of reach of the investigative authorities and undisturbedly enjoy their accumulated wealth.

The Netherlands takes a robust and comprehensive approach to prosecuting money laundering, guided by specific laws and regulations designed to detect, prevent, and punish financial crimes. The primary legal framework governing money laundering in the Netherlands is rooted in the Dutch Penal Code, specifically Articles 420bis, 420ter, and 420quater, which define various forms of money laundering as criminal offenses. These laws provide the basis for prosecuting individuals and entities involved in concealing or disguising the origin, acquisition, or use of illicit funds.

The Dutch approach is characterized by proactive investigations and cooperation between public and private sectors. The Dutch prosecution strategy is both preventive and punitive. Authorities not only aim to trace and seize illicit assets but also actively pursue legal action against offenders, holding them accountable through criminal penalties, fines, and asset forfeiture.

The Netherlands also emphasizes the importance of public-private partnerships, recognizing that collaboration with financial institutions, compliance officers, and other stakeholders is crucial for identifying suspicious transactions and enhancing the overall effectiveness of anti-money laundering efforts.

Overall, the Dutch legal framework and prosecution strategy reflect a commitment to maintaining a transparent and secure financial system, upholding international standards, and actively combating money laundering and its associated risks to society.

Money laundering is regarded as a process which consists of 3 phases:
1. The first phase is bringing the cash into the financial systems, by depositing it in a bank account for example.
2. The second phase is concealment. This involves such things as transferring sums of money to various bank accounts in the Netherlands and abroad.
3. In the third phase the proceeds of crime are spent. Luxury goods are purchased for example, or investments made.

The legal definition of money laundering in the Netherlands is much broader than the three phases described above. According to Dutch law it is not necessary for all three phases to take place for a money laundering conviction. Although money laundering is usually about money, the Dutch term money laundering is broader. For example, objects and rights can also be laundered. Money laundering is a criminal offense in the Criminal Code. A prison sentence may be imposed for this crime.

Indirect method of proof

Dutch money laundering cases of the last decade have shown that it is possible to fairly convict suspects of money laundering without proving a predicate offence. It is sufficient that proof is provided which points out the object does not originate from a legal source. In the following report you can read how, in a Dutch criminal investigation and prosecution, sufficient evidence can be produced in a stand-alone money laundering case. Secondly, and most importantly, it aims to claim that other countries can do the same in their fight against money laundering.

For a conviction for money laundering without an evident predicate offence the Court of Appeal in Amsterdam summed up the assessment framework for money laundering without a known predicate offence. The step-by-step plan is European Court of Human Rights (ECHR) proof. Read more about the ECHR ruling Zschüschen v. Belgium.

Money laundering indicators

Money laundering indicators in the Netherlands are categorized into three groups: typologies, generally known facts, and other indicators. Typologies are established by institutions like FATF and FIU-Netherlands and highlight patterns based on investigations. Generally known facts are legal concepts that don't require evidence. Other indicators suggest potential money laundering but don't meet the criteria of the first two groups. These indicators help identify and prove suspicious activities. The FATF reports also provide insights into typologies and indicators across specific areas.