1. Organized crime (Organized crime monitor)

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Introduction

• 1. Organized crime (Organized crime monitor)
• 2. Investment of crime proceeds (money
  laundering, misuse of corporate vehicles, real
  estate)

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Organized crime monitor

• 1996-2007
• 120 police files
• checklist
• How does it work?

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Key findings

• Transit crime rather than controlling sectors of
  economy or regions (like Mafia), misuse of legal
  infrastructure and economic infrastructure
• Transnational activities investments in familiar
  territories.
• Pyramidal structures exception Social ties
  basic for criminal cooperation

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Key findings

• Social embeddedness
• Legitimate occupations breeding ground for
  criminal associations
• Local embedded

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Damage

• Estimate CBS 3.3 billion Euros (1 GDP)
• Drugs 2 billion Euros
• Prostitution (woman trade) 660 million
• Illegal gambling 140 million

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Crime proceeds

• Meloen 52 cases most of the investments in real
  estate
• In sectors familiar to the offenders bars,
  hotels, brothels, houses/appartmenrts in familiar
  territories (Amsterdam not Kerkrade)

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Money laundering

• The process that begins with proceeds of crime
  and ends with investments in the formal economy
• Three sequential elements
• placement (cash deposits)
• layering (concealing criminal origin)
• integration (converting into apparently
  legitimate earnings or loans

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Corporate vehicles

• Limited, Societe Anonyme, Delaware Corporation,
  besloten vennootschap
• Separation between Individual A and his
  activities/funds lodged in Corporate Vehicles
  (Legal persons)
• Absence of personal liability (you can take
  risks)
• You can hide your fortune split between judicial
  owner and beneficial owner

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Conclusions

• A hugh amount of crime proceeds (probably)
• Attitude investment in real estate familiar
  territories
• Legal forms (corporate vehicles) are easily
  misused for concealing origin, investing the
  proceeds of crime
• Diffuse distinctions between illegal and
  legal worlds
• Conflicts (extortion disagreement) between
  offenders and legitimate actors

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Corporate vehicles

• Opportunities for misuse its rather easy to
  misuse corporate vehicles (concealing the origin
  of the money hiding your involvement creating
  apparently legitimate reasons for converting
  crime proceeds into clean money

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Casus Housing
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