Authorities struggle to curb criminal use of legitimate businesses
Authorities struggle to curb criminal use of legitimate businesses as organized crime increasingly exploits legal companies and storefronts as cover for illegal activity, RTL reported.
From 2020 to 2024, a criminal network used a small Rotterdam grocery store as an underground bank that funneled well over 51 million euros. In a separate case in Utrecht, criminals were seen operating in a normal shopping street to infiltrate legitimate storefronts, RTL reported.
The Financial Intelligence Unit, which analyzes reports of unusual financial activity, recorded nearly 600,000 suspicious transactions over the past five years, totaling well over 100 billion euros. That figure is more than double the amount recorded in the previous five-year period.
Authorities and researchers say the problem is expanding quickly. Over the past five years, the national business register recorded about 17,000 suspicious business registrations. Last year alone, staff flagged 3,728 newly formed companies with suspected criminal intent, roughly 500 more than the year before.
The business register says it has been in what it describes as “constructive” discussions with the Ministry of Economic Affairs to prevent such companies from being established. However, officials admit that they have made little concrete progress so far.
Criminologists describe business registration as a “golden ticket” for criminals, providing immediate access to bank accounts and a legitimate cover identity. Jimmy Maan, a criminologist at Avans University of Applied Sciences’ organized crime research program, said businesses offer far more advantages than banking access alone. “It also helps to defraud other companies, for example. Under the guise of a business, large shipments can be stolen,” Maan told the RTL.
He added that businesses can also be used to obtain sensitive goods that would normally raise suspicion if ordered by private individuals, such as laboratory materials or chemicals, which can later be used in drug production.
The Rotterdam case illustrates how legitimate storefronts can function as financial hubs for criminal organizations. Police observed individuals entering the store carrying full bags and leaving without purchasing food or groceries. During a raid, investigators found a money-counting machine, confirming its role as an underground bank.
Authorities said the business was used to launder money suspected of originating from cocaine trafficking. In January, courts sentenced the owners to four to ten years in prison, along with substantial fines, for money laundering and participation in a criminal organization.
Maan said infiltration is not limited to criminals starting companies themselves. In some cases, they take over or manipulate existing legitimate businesses. “Criminals use normal companies because it is too difficult, cumbersome, or risky to formally operate their own business,” he said. “That helps them avoid detection.” He added that such infiltration can occur without the knowledge of business owners or be enforced through coercion.