National Threat Assessment 2008. Organised Crime - Politie

Harm to or threatening the natural environment
or the living environment
One possible consequence of criminal investments in property mentioned
several times by respondents and in the literature is (further) degeneration or
dilapidation of urban districts as a result of neglect and/or criminal exploitation.
The properties in which the criminals invest could, for example, be used for
illegal residence in the Netherlands, for which considerable amounts are
sometimes paid (‘rack renting’). It should be noted that this practice mainly
happens in districts that have a certain level of deprivation or dilapidation. In
these cases the criminal investments in property may also attract crime, as these
districts are good locations for (other) suspect (criminal) entrepreneurs to set up
their business. More unlawfully obtained properties also offer more possibilities
for money laundering. For example, if criminals buy buildings in the Amsterdam
red-light district, they will be able to launder their money and then to use it for
illegal business. Criminal ownership of property and mala fide practices involving
property can be intertwined with other illegal phenomena such as illegal
residence, illegal employment, human trafficking and human smuggling.
Disruption of socio-economic relations
Investment of (large amounts of) money in the property sector by criminals affects
other investors in the property sector. It disrupts market prices and it creates unfair
competition. Due to their comfortable financial position, criminals are often able
to buy buildings under better conditions (cash payment, no mortgage, some of
the payment ‘undeclared’), which also forces prices up. Criminal use of financial
service providers can result in unfair competition on the service provider market if
they are paid without the payment being declared or if – due to the suspect nature
of the situation – they can ask higher fees for their services.
Criminal entrepreneurs involved in money laundering in the property sector
mix with bona fide people in the property business. Positions of economic
power enable criminal entrepreneurs to manipulate prices, use property for
their own criminal purposes, give their criminal activities a legal front and
simplify the laundering of unlawfully obtained funds. Money laundering using
property always requires help from a third party, such as lawyers, civil-law
notaries, tax experts and sometimes corrupt public servants. They form the
link between criminal circles and legitimate society.
Harming of national interests and international relations
According to a few respondents, the idea has emerged internationally that
unlawfully obtained funds can be easily invested in the Netherlands. This
damages the Netherlands’ reputation, which in turn affects international
economic and political relations.
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