Money Laundering

Article 420bis (1) of the Criminal Code describes money laundering as follows:

Being guilty of money laundering shall be punishable by imprisonment not exceeding six years or a fifth category fine:

a. he who hides or conceals from an object the true nature, origin, location, disposition or movement, or hides or conceals who is the rightful owner of an object or possesses it, while knowing that the object - directly or indirectly - comes from any crime;

b. he who acquires, possesses, transfers or converts an object or uses an object while he knows that the object - directly or indirectly - originates from any crime.

So punishable are a number of acts with an object, "knowing" that the object is from crime.

Article 420quater describes debt laundering as follows:

Being guilty of debt laundering shall be punishable by imprisonment for not more than two years or a fine of the fifth category:

a. he who conceals or disguises from an object the true nature, origin, place of finding, disposal or movement, or conceals or disguises who is the rightful owner of an object or has it in his possession, while he should reasonably suspect that the object - directly or indirectly - comes from any crime;

b. he who acquires, possesses, transfers or converts an object or makes use of an object when he should reasonably suspect that the object - directly or indirectly - originates from any crime.

The difference tusse between the doleful variant of money laundering (art. 420bis Sr) and culpable money laundering (art. 420quater Sr) thus lies in the intention of the suspect. If he or she acted with the knowledge that an object originated from crime, then Article 420bis may apply. If there is no such knowledge, but the suspect should reasonably have suspected that an object was the product of a crime, culpable money laundering may apply.

Maximum prison terms

The maximum prison sentence depends on the form of money laundering that is deemed proven:

• six months in prison for laundering an object derived from one's own crime (art. 420bis.1 Sr)

• two years in prison for debt laundering (art. 420quater Sr.)

• six years' imprisonment for money laundering as referred to in Article 420bis of the Criminal Code

• eight years in prison for habitual money laundering.

LOVS orientation points

The preceding enumeration refers to maximum prison sentences. In practice, judges rarely impose the maximum sentence.

Courts have mutually established benchmarks for the sentence to be imposed when someone is convicted of fraud. Judges are not bound by this, but the landmarks do provide guidance to judges. The fraud guideline points make the sentence to be imposed dependent on the extent of the fraud:

• Up to € 10,000.-- 1 week - 2 months GS ov / TS ov

• € 10,000.-- to € 70,000.-- 2-5 months GS ov / TS ov

• € 70,000 to € 125,000 5-9 months GS ov /TS ov + GS vw

• € 125,000.-- to € 250,000.-- 9-12 months GS ov

• €250,000.-- to €500,000.-- 12-18 months GS ov

• €500,000.-- to €1,000,000.-- 18-24 months GS ov

• € 1,000,000 and above 24 months - maximum GS ov

Additional penalties and measures

If someone is prosecuted for money laundering, the stakes can be high. In addition to (prison) sentences, the prosecution can also try to deprive unlawfully obtained gains. This is popularly known as the plukze law. The financial stakes then quickly mount up. A conviction for money laundering can also have consequences for obtaining a certificate of good conduct, especially if the convicted person wants to (continue to) work in financial services.