Rampant mortgage fraud used by gangs to buy up homes around NL
Between 6,000 and 11,000 homes in the Netherlands have been bought with forged documents in recent years, according to an...
Criminal gangs in the Netherlands are allegedly using forged mortgage documents to purchase homes, which they subsequently exploit for various illegal purposes like money laundering, illegal rentals, labour exploitation, and drug trafficking, according to an unpublished report by the Financial Expertise Centre (FEC). The FEC, a collaborative effort between regulators and law enforcement agencies, has been working on the report for over six months.
The report, which is expected to be completed in March, suggests that criminals forge documents such as pay slips, employer statements, annual accounts, and tax returns to secure mortgages.
Various stakeholders, including MPs, the Dutch banking association NVB, and the notaries' professional body KNB, have long voiced concerns about this issue. The previous government had commissioned the FEC to investigate mortgage fraud. NVB chair Medy van der Laan stated during a parliamentary hearing on organised crime that the homes bought through fraudulent means are often used for money laundering, illegal renting, labour exploitation, and drug crime.
She highlighted that this trend is escalating and is adversely affecting the quality of life in neighborhoods.
Banks and notaries are advocating for the ability to verify applicants' income data with the tax office to combat this fraud. Van der Laan emphasized their commitment to privacy while stressing the need to confirm the accuracy of the information provided. Left-wing Pro MP Hanneke Mutluer has urged the report and its recommendations to be presented to parliament as soon as possible. MPs are scheduled to discuss the matter in the upcoming week.
In 2024, the Financieele Dagblad reported a criminal network that had used forged mortgage papers to acquire hundreds of homes in the Amsterdam area from 2018 to 2023. These properties were allegedly used to store cash and drugs, as well as to house foreign workers. In October of the same year, Amsterdam police arrested a Zaandam real estate agent and seven others suspected of falsifying mortgage papers for criminal clients.
They had previously called for banks to be permitted to cross-check applicants' income against tax office data.
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