National Threat Assessment 2008. Organised Crime - Politie

Criminals invest in property together if they wish to expand their criminal
possibilities. The possible uses of the property to launder money and as a
business asset are the main motivations. Collection of capital and expansion
of business activities are the dominant objectives. This is why property is usually
viewed as a particular form of money that can be exchanged for cash where
necessary for consumer purposes. Generating a return is less urgent than
limiting the chances of being caught. The concealment techniques used for
this purpose, such as straw men and ownership constructions, make it difficult
to establish exactly which member of a criminal group is the beneficial owner
of a particular investment in property.
It seems that not many of these people are ‘saving for a rainy day’, as portfolio
investments to provide some form of pension scheme are much less frequent.
Only a small group of criminals has enough laundered funds and a vision of
the future to view property as a portfolio investment.
The level of criminal turnover at which criminals start investing in property
is unknown. It depends on the nature of the criminal business and the profits
generated, but also on the lifestyle of the criminal involved. In criminal sectors
where large profits are generated the chances that the criminals will invest in
property are probably the highest. These sectors include the trafficking and
illegal production of drugs, human trafficking and fraud. Investments are
often made in the country of origin of the members of the group.
3.6.5 Consequences for Dutch society
Damage to physical or mental health
The main sources of damage to Dutch society are extortion, violence and threats
against property investors and professional service providers. Violence relating to
criminal investments in property is sometimes also aimed at competing criminals.
Violence or the threat of violence appears to play a role in the background;
criminals use it as a means to invest or launder criminal proceeds. According
to several respondents, criminals sometimes force service providers to cooperate
with criminal investments in property. In a few cases service providers were
even killed.
Financial loss due to loss of money or property/goods
In the event of suspect ABC transactions the parties involved may harm the
interests of the tax authorities (read: Dutch society), e.g. if they evade capital
gains tax that would otherwise be paid to the tax authorities.
134 National Threat Assessment 2008 – Organised crime