Financial Crime World

Dutch Legal System Cracks Down on Money Laundering: All-Crimes Approach Unveiled

Money Laundering in the Netherlands: Overview

Money laundering, the process of concealing the illicit origins of funds, has taken center stage in the Netherlands’ criminal justice system since it became a standalone offense in December 2001. This article provides an overview of the Dutch approach to combating money laundering and related crimes.

  • Article 420bis of the Dutch Criminal Code: This article defines money laundering in the Netherlands.
  • Financial Intelligence Unit-Netherlands (FIU): This organization provides legal definitions and supports investigations related to money laundering and terrorist financing.

Definition of Money Laundering

According to the FIU, money laundering:

“consists of conducting (or arranging for others to conduct) acts that provide apparently lawful origins for an increase in assets that have been kept from the legal authorities. The purpose behind such actions is to hide the source of the funds.”

All-Crimes Approach

Adopting an “all-crimes approach,” the Netherlands broadened the scope of offenses that can serve as the basis for money laundering investigations. This strategy allows for all crimes that generate criminal proceeds to be considered predicate offenses for money laundering.

Predicate Offenses

A variety of offenses fall under this definition:

  • Child Sexual Abuse Images
  • Subsidy Fraud
  • European Union Mandated Crimes: The EU has implemented a directive mandating 22 criminal activities as predicate offenses for money laundering in all EU states. These include:
    • Cybercrime
    • Corruption
    • Fraud
    • Sexual Exploitation

Penalties for Money Laundering

The Dutch penalties for money laundering can be severe, including fines and imprisonment for up to eight years.

Enforcing the Law

The authorities continue their efforts to combat money laundering and safeguard the integrity of the financial system.

Conclusion

In conclusion, the Dutch legal system has taken a strong stance on money laundering, adopting an all-crimes approach that broadens the scope of offenses that may be linked to money laundering investigations. This approach allows for the targeting of crimes that generate criminal proceeds, as well as providing a more comprehensive response to the threat of money laundering in the Netherlands and across the European Union.