Because mortgage lenders currently cannot independently verify income data, there remains - especially in the current market - an incentive to report a higher income. This leads to a widespread societal problem. Not only does this result in unfair competition that drives up housing prices, but criminal money can easily be laundered by purchasing or renovating a property and selling it at an increased value.

Various studies show that billions are laundered annually in the Netherlands. Due to the price-inflating effect of this fraud, it affects society as a whole in an already tight housing market. Criminal money is laundered, and there is less tax revenue, which harms the treasury.

Preventing Fraud at the Front End

By focusing on an integrated collaboration where parties can share information, joint risks can be identified early. For instance, mortgage lenders want to verify customers income with the Tax Authorities to prevent criminals from applying for a mortgage with falsified income data - such as employer statements or so-called income from self-employment.

Furthermore, it would help if the police could share information with mortgage lenders in cases of fraud, so that measures can be taken to stop fraud and money laundering. In this way, you close the possibility of committing fraud at the front end.

Strengthening the Gatekeeper Role of Notaries

Strengthening the gatekeeper role of notaries is also an important component. The notarial approach focuses on three significant improvements.

First, a rapid implementation of the Central Shareholders Register (CAHR) is essential to clarify who is behind a company involved in criminal activity.

Additionally, notaries should be able to warn each other in case of suspected fraud. This requires breaking their confidentiality obligation.

Finally, it is desirable for notaries to draft the purchase agreement in real estate transactions so that abuse and fraud can be detected and prevented at an earlier stage.

Round Table Discussion

This joint approach has been presented to the House of Representatives in preparation for the round table discussion on financial-economic crime on May 28. The four parties invite members of parliament and stakeholders for a constructive dialogue.

Read here the joint policy wishes letter from the police, KNB, NBV, and SFH.