Money laundering: a term that often appears in the news, but not everyone knows exactly what it means. Even so, a suspicion of money laundering can have major consequences for companies, directors and private individuals alike. A suspicion of money laundering arises quickly: as soon as a predicate offence comes to the attention of, for example, a regulator, a bank or the tax authorities, a suspicion of money laundering is almost automatically attached to it. Banks also readily ask questions about the origin of funds and the purpose of cash deposits. That alone can have all kinds of unpleasant consequences, such as registration in the banks’ internal or external referral registers (IVR/EVR).
Moreover, transactions involving cash quickly give rise to a suspicion of ‘fraud’, which includes, for example, deception and forgery. A suspicion of fraud is usually followed by a criminal complaint. A recent case, in which pallet and packaging companies were suspected of laundering millions of euros through fictitious purchases and cash withdrawals, showed how quickly the FIOD and the Public Prosecution Service can take action. In this blog, we explain what money laundering is and why it is crucial to seek legal assistance immediately if you are suspected.
What is money laundering?
Money laundering is concealing the illegal origin of money or goods. This can be done in many ways:
- Through cash deposits of money derived from criminal activities.
- Through false invoices, for example for goods or services that were never supplied.
- Through investments in real estate or businesses with money of unclear origin.
Criminal law distinguishes between intentional money laundering and culpable (negligent) money laundering. Culpable means that you may not have known about the illegal origin of the money, but you should have asked about its origin and did not do so – so you ought to have known that it had an illegal origin. Even if you were unaware of the criminal origin of the money, you can therefore still be prosecuted. That makes money laundering cases particularly risky.
What are the consequences?
A suspicion of money laundering can have far-reaching consequences:
- Searches of homes and business premises.
- Seizure of records, cash, vehicles and real estate.
- Pre-trial detention of directors.
- Damage to reputation and business operations.
In addition, companies risk fines, additional tax assessments from the Dutch Tax and Customs Administration and even the loss of their licence or business relationships.
Why you should contact a lawyer immediately
Money laundering cases are complex and often revolve around financial data, transaction flows and interpretations of laws and regulations. A specialist lawyer:
- analyses the criminal case file and examines whether the suspicion will hold up legally;
- advises on communication with the FIOD and the Public Prosecution Service;
- protects the rights of both the company and its directors;
- develops a defence strategy tailored to the specific circumstances of your case.
Important decisions are taken precisely in the early stages of an investigation. So do not wait, but contact a lawyer with expertise in financial and economic criminal law straight away – for example via our page: money laundering lawyer.
First phone call? Free of charge and confidential
Have you or your company been approached by the FIOD? Has property been seized, or have you received a summons? Then contact us immediately.
An initial phone call is completely free of charge and confidential. Together we will discuss your situation and determine the best next steps. Call us today. Your defence starts with the first conversation!