An investigation by the Financial Expertise Center (FEC) of the Netherlands has revealed that car dealers deposited more than a billion euros in cash at various financial institutions over the last four years. Since most car companies do not accept cash anymore, it is clear that only a small number of such companies have deposited the large sums of cash.
FEC’s investigation has encouraged financial institutions to monitor more closely for cash deposits by car dealers. Some institutions have reported suspicious transactions to the Financial Intelligence Unit (FIU) of the Netherlands. Notably, these reports have identified that the cash deposited has many denominations of €500. Moreover, these deposits do not align with the previous transaction history. Sometimes, car dealers have conducted cashless transactions with noticeably odd parties like fruit-sellers and criminals.
Interestingly, the FIU of the Netherlands has noted that the car dealers themselves are the primary source of reported transactions. This is not surprising because car dealers are obligated to report suspicious transactions. However, the FIU has noted that the received reports are either incomplete or incorrect. They tend to skip adequate customer due diligence, which helps conceal the identity of the actual buyer. This investigation by the FIU of the Netherlands has helped uncover how internationally operating criminal gangs may be working in conjunction with car dealers.