The suspects are a 41-year-old man and a 38-year-old woman from The Hague and a 40-year-old woman from Vlaardingen. The Financial Economic Crime team of the National Investigation and Intervention Unit tracked the suspects in a money laundering investigation. It is suspected that criminal money was used to purchase luxury goods and sell them in China. During the search of the residence, a large quantity of branded bags, shoes, clothing, and watches was seized. Officers found cash, credit cards, and data carriers. Additionally, the residence and a Porsche were seized.

Luxury goods as a cover: Daigou

This form of trade in luxury goods between Western countries and China is called Daigou. Literally translated, it means buying for another. It is a phenomenon where valuable goods are purchased in Western countries with criminal cash. Think of cosmetics, leather goods, watches, and jewelry from luxury brands. There is a high demand for these products in China, and the price can be up to 40% higher. Subsequently, these valuable goods are smuggled from the West to China and sold there, circumventing import taxes. Since the Covid pandemic, Daigou trade has grown significantly, and the import value of Daigou sales to China is now estimated at 81 billion dollars. A lucrative trade for Daigou traders and a reason for the police and the Public Prosecution Service to investigate and take action against it.

Underground banking

Daigou traders receive money in China from the sale of valuable goods. Due to Chinese restrictions on payment transactions abroad, this money cannot always be transferred to the country where the trader is located. Therefore, an underground banking system is used for this purpose. Underground banking is a form of organized crime. It is also used to move cash flows from international drug trafficking. Large amounts of cash are moved or converted into cryptocurrencies within a network of underground bankers and currency brokers. Through the network of underground bankers, payments can be made anywhere in the world without the money physically crossing the border. Tackling and combating criminal underground banking is a priority for the National Public Prosecutors Office and the National Investigation and Intervention Unit. A systemic approach has been developed within the Taskforce Underground Banking.

This investigation also suspects that the defendants used a form of underground banking to collect the income from Daigou trade. The suspects will be presented in court on Wednesday, May 21.