What Dutch Businesses Need to Know

What Is Money Laundering?

At its core, money laundering is the process of making illegally obtained money appear legitimate. Criminals use it to obscure the origin of funds so they can inject them into the formal economy.

While there’s a classic three‑stage model, the real legal definitions are broader:

1. Placement – Introducing illicit cash into the financial system (for example: large cash deposits).
2. Layering – Moving money through a web of transactions, transfers, shell entities, cross-border flows to break the audit trail.
3. Integration – Bringing the funds into “clean” use: investments, businesses, luxury assets.

However, under EU law, you don’t need to go through all three steps. Even a single act tied to criminal proceeds may qualify as money laundering—as long as there’s intent and recognition that the funds come from unlawful activity.

How the EU Defines Money Laundering Offenses

The EU’s 6th Anti‑Money Laundering Directive (6AMLD) harmonizes the definition of money laundering across Member States. According to that directive, the following actions, when done intentionally and with knowledge that the property derives from criminal activity, are punishable:

• Conversion or transfer of property (e.g. converting cash into cryptocurrency, or moving funds via accounts to mask origin)
• Concealment or disguise of the nature, source, location, ownership or control of illicit funds
• Acquisition, possession, or use of property known to stem from crime
• Attempting, aiding, abetting, or inciting any of the above

A crucial feature: a prior conviction for the underlying crime (the so-called “predicate offense”) is not required. Prosecutors only need to show that the assets originate from criminal activity.

Predicate Offenses: The Underlying Crimes Behind Laundered Money

Money laundering doesn’t stand alone. It must relate to proceeds generated by another crime, the “predicate offense.” Under EU rules, the list is broad and includes:

• Drug trafficking
• Human trafficking and migrant smuggling
• Corruption and bribery
• Fraud (including VAT or tax fraud)
• Counterfeiting and piracy
• Environmental offenses (e.g. illegal waste trades, wildlife crime)
• Cybercrime
• Terrorism and related crimes

Because the range is so wide, companies must be vigilant, even if they don’t operate in the financial sector.

Corporate Liability for Money Laundering

One of the most important aspects for businesses: companies themselves can be held liable. That means:

• If senior management or decision-makers engage in these offenses
• If employees or agents do so, and the company failed in oversight or prevention

For groups with multiple entities, consistent AML policy and oversight across the group is essential.

How Money Laundering Offenses Tie Into AML Compliance

Understanding the law is one thing; applying it operationally is another. That is where AML (anti‑money laundering) compliance plays a crucial role.

• Customer Due Diligence (CDD) ensures you understand who owns and controls incoming funds
• Ongoing transaction monitoring helps identify anomalies before funds fully integrate
• Suspicious Activity Reporting (SAR) to the relevant Financial Intelligence Unit (FIU) can help disrupt laundering chains and absolve your business of ignorance claims

By embedding strong AML controls, companies reduce the risk that they’ll be dragged into laundering charges, whether directly or indirectly.

Practical Steps to Safeguard Your Company

Here are concrete actions businesses should take:

1. Train staff on red flags and suspicious behavior
2. Establish clear escalation paths internally for suspect cases
3. Maintain documentation of due diligence, decisions, and reports
4. Identify high‑risk verticals (e.g. real estate, crypto, luxury goods, cross-border clients) and evaluate exposures
5. Align group-level AML policies if operating across jurisdictions

Your AML Questions Answered

What counts as a money laundering offense under EU law?	Acts like converting, transferring, concealing, acquiring, possessing, or using property from crime, or aiding/abetting these.
Do you need a conviction for the original crime?	No. Laundering charges can stand if property is shown to come from crime.
Which crimes produce laundered funds?	Predicate offenses include fraud, corruption, cybercrime, tax crime, environmental crime, terrorism, etc.
Can a company be held liable?	Yes. For actions of management or employees, or for failure to prevent wrongdoing.
What penalties can result?	Individuals may face jail and fines; companies may face heavy fines, exclusion, bans, and reputational harm.

If you’re expanding into the Netherlands or the broader EU, we can guide you in building a robust compliance framework. Contact us to learn how we can protect your company and help ensure your growth is built on solid compliance foundations.