After the arrests, four locations connected to the suspects were searched. During this process, documents, cash, and valuable items, such as watches and jewelry, were seized. In one of the premises, officers found a pepper spray. All suspects and several witnesses have since been released. The investigation is still ongoing, and the police do not rule out further arrests or summonses. Once the investigation is fully completed, the public prosecutor will make a decision on prosecution.
Falsifying Income Data
The criminal investigation started in June of this year and stemmed from a previous investigation into mortgage fraud in the Amsterdam region. During the investigation, suspicions arose that the main suspect was acting as a facilitator involved in large-scale mortgage fraud using falsified income data, namely (often) inflated annual figures and/or fictitious employment. The main suspect played a leading role in this. Many of his clients turn out to be labor migrants. The investigation ultimately led to the arrested suspects, but also to about twenty other individuals who have since been interviewed as witnesses in the case. This operation involved the Financial Economic Crime department (FINEC) of the Amsterdam unit collaborating with colleagues from the North Holland unit and the Fiscal Intelligence and Investigation Service (FIOD).
Strengthening the Gatekeeper Role of Mortgage Lenders
The societal damage caused by real estate and mortgage fraud is significant. Therefore, it is crucial to implement measures to effectively combat this form of financial-economic crime. Since mortgage lenders cannot currently independently verify income data, there remains an incentive to report a higher income, especially in the current market. This not only leads to unfair competition that drives up housing prices but also allows criminal money to be easily laundered by purchasing or renovating a property and paying off the mortgage or construction fund with criminal or black money, and selling it at a profit. 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. By focusing on integrated collaboration where parties can share information, joint risks can be identified early. Mortgage lenders want to verify the declared income of clients at the time of the mortgage application 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. 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 key improvements. First, the rapid implementation of the Central Shareholders Register (CAHR) is essential so that it is clear who is behind a company involved in criminal activities. Additionally, notaries should be able to warn each other in cases of suspected fraud. This requires breaking their confidentiality obligations. This way, fraud and potential abuse of the financial system can be detected and prevented at an earlier stage.
