Large-scale and drug-related mortgage fraud in Amsterdam

The government has a policy aimed at preventing money laundering and terrorist financing. This includes all forms of fraud (such as bankruptcy fraud and tax fraud) and bribes (corruption). Therefore, almost all service providers, including us as civil-law notaries, are legally obligated to conduct client due diligence when providing certain services, monitor clients, investigate the origin of the funds used, and report unusual transactions to a national reporting center. These obligations are stipulated in the Money Laundering and Terrorist Financing (Prevention) Act (Wwft). This law is based on a European directive, meaning that roughly the same rules apply throughout the European Union.

The FD recently reported on large-scale, drug-related mortgage fraud perpetrated by a criminal network in Amsterdam. Hundreds of Amsterdam homes are involved, some of which are used for criminal purposes after purchase. Twenty-two people working in real estate, administrative offices, and mortgage advisors are suspected of fraud, forgery, and money laundering.

Although the notary profession does not appear to be directly involved (a single notary reportedly reported unusual transactions to the FIU), it is affected. All these transactions were, after all, conducted through a notary. Therefore, following the FD report, the Royal Dutch Notarial Association (KNB) contacted the Financial and Economic Crimes department of the Amsterdam police unit to discuss this fraud case soon and what preventative measures the notary profession can take from it.