The article reports that drug criminals are setting up large-scale mortgage fraud networks throughout the Netherlands. The discovery was made after the Amsterdam police found that drug criminals had purchased hundreds of homes in the capital through mortgage fraud in recent years. The report claims that at least 8,000 homes are in criminal hands. The Amsterdam police chief, Pim Jansonius, stated that the ease with which criminals can obtain mortgages using fake documents is alarming and has a significant attraction effect. He also mentioned that criminals are growing from drug trafficking to mortgage fraud as it offers an easier revenue model and the opportunity to launder drug money.
The article further mentions a criminal network discovered in July, which involved a real estate agent with a history in drug trafficking, administrative offices, and mortgage advisors. The network arranged mortgages with fraudulent payslips and employer statements against cash payments of around 10,000 euros per home. Following the media’s coverage of this story, several police units contacted their Amsterdam colleagues, and it was discovered that six units in the country are conducting or will conduct investigations into similar criminal clusters of a similar size to those in Amsterdam.
The police chief called the extent of these networks alarming as thousands of homes are being removed from the regular housing market nationwide. He stated that it disrupts society and undermines the integrity of the financial sector. Criminals involved earn tens of millions from it, and banks provide billions in mortgages. Jansonius advocated for allowing banks to check with the Tax Authority whether the income stated on a payslip checks out, as privacy legislation currently prohibits this. He also recommended that banks should better check Chamber of Commerce registration, ensuring that the company has filed any annual statements.
The Dutch Banking Association (NVB) confirmed that mortgage fraud is a growing problem and banks are unable to defend against it themselves. NVB director Eelco Dubbeling expressed concern and stated that it is time to structurally close the gate to criminals. He also called for discussions with the new Minister of Justice regarding this matter.
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