Financial Investigations and Criminal Money
| Pages | 33-38 |
| DOI | https://doi.org/10.1108/eb027168 |
| Published date | 01 March 1998 |
| Date | 01 March 1998 |
| Author | Marcel Pheijffer |
| Subject Matter | Accounting & finance |
Journal of Money Laundering Control —
Vol.
2 No. 1
Financial Investigations and Criminal Money
Marcel Pheijffer
This article starts with a short introduction to the
department of the Dutch Fiscal Investigation and
Information Service (FIOD). There will be an
introduction on financial investigations in general,
a definition and goals. Attention will also be given
to the recommendations of the Financial Action
Task Force. There are two examples of financial
investigations, one in the area of so-called 'organ-
ised crime' and one in the area of organisational
crime'. These examples make clear that financial
investigations can be a successful investigation
method. Through the use of this method both
tactical information and evidence are given. The
examples will also show that financial investiga-
tions may have to be connected to other forms of
investigation: the use of informers, surveillance,
wire tapping and crown witnesses. They will also
make clear that, from the point of view of
a
finan-
cial investigator, there is no big or relevant distinc-
tion in the way of tackling these sorts of crime.
THE FISCAL INFORMATION AND
INVESTIGATION SERVICE
Among the special law enforcement agencies, the
FIOD — as a result of its task to investigate tax
fraud — has a keen interest in combating money
laundering. Its position within the Inland Revenue
also means that special knowledge regarding the
fight against money laundering has been compiled.
Knowledge about money laundering techniques
and forfeiture procedures are integrated in the
basic training of
all
investigating officers.
The FIOD cooperates with other (police)
organisations in organised crime investigations and
also conducts this kind of investigation indepen-
dently. Applying the standard techniques of fiscal
and financial investigations against a major drugs
syndicate has recently proved to be very successful.
The main focus of the FIOD is aimed at non
compliance and criminal behaviour, mainly related
to tax fraud. The tendency to make use of illegal
financial sources for legal activities is more promi-
nent here than it is in pure criminal organisations.
The intellectual and expertise level of the (poten-
tial) offenders is higher too.
Recently, initiatives have been developed to have
the national registration centre for unusual trans-
actions, the so-called MOT, improve its perform-
ance in the field of the fight against money
laundering. The financial skills of the MOT are
optimised through cooperation with officers of the
FIOD and by allocating to it an expert from the
Inland Revenue. The FIOD will also conduct
investigations to make reports of the MOT usable
for investigations in order to fight money launder-
ing.
Another new activity is aimed at the stock
exchange and the investment market. By analysing
its financial flows, signals concerning fraud, money
laundering and other forms of crime are listed in
order to combat money laundering and tax
evasion.
Furthermore the FIOD is working on a project
which we call 'object detection', which is innovat-
ing with respect to the approach of the money
laundering problem. Usually, the suspected crimi-
nal,
his organisation and its transgressions arc the
starting points of an investigation. The philosophy
of 'object detection' is to focus on suspect capital
or capital goods (the object) although there is at
that time no immediate connection to known
crimes or suspects. It could be said that the finan-
cial investigator follows the trail in reverse order.
This makes clear why investigation officers of
the FIOD are participating in almost every major
investigation against organised or other serious
crime. It is very important to recognise that there
is a role for the tax authorities, including divisions
such as the FIOD, in combating money launder-
ing, because at the moment this is not common in
every country or jurisdiction. However, in the
Netherlands the FIOD plays an important role in
combating money laundering and other sorts of
criminality. This role seems to be quite natural as
criminals generally do not pay taxes on their ill-
gotten gains. Tax evasion is big crime business and
the laundering of money is a condition sine qua
non since any unaccountable income or specific
expenses will — sooner or later — attract the
attention of the tax authorities.
Page 33
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