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

2. Organized crime monitor 1996-2007 120 police files checklist How does it work?

3. 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

4. Key findings Social embeddedness Legitimate occupations: breeding ground for criminal associations Local embedded

5. Damage Estimate CBS: 3.3 billion Euros (1% GDP) Drugs: 2 billion Euros Prostitution (woman trade) 660 million Illegal gambling 140 million

6. 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)

7. Money laundering The process that begins with proceeds of crime and ends with investments in the formal economy Three sequential elements: 1.placement (cash deposits); 2.layering (concealing criminal origin); 3.integration (converting into apparently legitimate earnings or loans

8. 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

9. 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

10. Corporate vehicles Opportunities for misuse; it’s 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

11. Casus Housing Exchange office London/UK Account LTD A.Ltd/BVI Bank BVI B. SA Luxemburg Housing BV/NL Criminal org/NL Cash “Loan” Giro transfer