Money laundering involves the concealment or disguise of the illegal origin of money or property. Even the mere possession of criminally obtained assets can already be regarded as money laundering.
Definition of Money Laundering
According to Articles 420bis to 420quater of the Criminal Code, money laundering includes:
- The masking of the origin of objects derived from a crime
- The acquisition, possession or transfer of these objects
- The use of money obtained from criminal activities
Types of Money Laundering
- Intentional Money Laundering (420bis) - You are aware of the criminal origin of the money. Maximum penalty: 6 years.
- Culpable Money Laundering (420quater) - You should reasonably have suspected that the money was criminal. Maximum penalty: 2 years.
- Structural Money Laundering (420ter) - The repeated commission of money laundering. Maximum penalty: 8 years.
Practical Examples
- Depositing drug money in cash into a bank account
- Purchasing real estate with illegal money
- Issuing false invoices to legitimise black money
- Moving money through international structures
- Using a business as a front for money laundering
Money Laundering of One's Own Criminal Proceeds
It is punishable to launder money derived from a crime that you yourself have committed. For example, if someone earns money from drug trafficking and spends it, that person commits both drug trafficking and money laundering.
Obligation to Report
Institutions such as banks, notaries and real estate agents are obliged to report suspicious transactions to FIU-Nederland. This helps in detecting money laundering practices.
Forfeiture of Criminal Assets
Upon a conviction for money laundering, the Public Prosecution Service (OM) may file a claim to forfeit the laundered amount. This means that you must surrender your criminal profits.
Frequently Asked Questions about Money Laundering
When am I liable for money laundering?
You are liable if you consciously conceal or use money or goods knowing they come from a crime (intentional money laundering). Also if you should have suspected this (culpable money laundering), you can be prosecuted. Even possession of criminal money can be punishable. The penalty depends on the circumstances and whether it is repeated (structural money laundering).
Can I unknowingly commit money laundering?
Yes, in the case of culpable money laundering (Article 420quater Criminal Code), you do not need to be certain that the money is criminal, but you should have suspected it. For example, accepting an unusually large cash payment without inquiry. The penalty can amount to 2 years' imprisonment.
What happens in case of suspicion of money laundering?
In case of suspicion, the Public Prosecution Service initiates an investigation. You may be arrested and questioned. A conviction can lead to a prison sentence (up to 8 years for structural money laundering) and forfeiture of criminal assets. A criminal record can also have consequences for work or travel. Contact a lawyer immediately if suspected.
Is money laundering of one's own crime proceeds punishable?
Yes, laundering money from one's own crime is punishable. For example, if you deposit money from drug trafficking into a bank account, you commit money laundering in addition to drug trafficking. This can result in a heavier penalty and forfeiture of the full amount.
What is the role of banks in money laundering?
Banks and financial institutions must report suspicious transactions, such as large cash deposits, to FIU-Nederland. If they fail to do so, they risk sanctions. For customers, this can lead to blocked accounts and a criminal investigation.
How do I avoid unintentional involvement in money laundering?
Be cautious with transactions that seem unusual, such as large cash payments. Always inquire about the origin of the money and be alert to deviant patterns to avoid unintentional involvement in money laundering practices.
Legal Assistance in Leiden
For legal assistance in Leiden, you can go to the Juridisch Loket Leiden, located at Stationsweg 46. In addition, the District Court of The Hague, Leiden location, handles cases related to money laundering and other criminal law matters.