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After a Chinese national spent roughly $3.5m in cash at its Dutch stores in Netherlands Louis Vuitton has become the centre of a money laundering probe. Dutch prosecutors have officially named Louis Vuitton Netherlands a suspect in the investigation into alleged failures to report about suspicious transactions.
The purchaser, identified is Bei W. of Lelystad, reportedly made all transactions in cash for handbags and luxury goods. The purchases were made over 18 months between September 2021 and February 2023, as per a report by the New York Post. He also ensured that no individual transactions crossed €10,000. This amount is the legal limit for mandatory reporting under Dutch anti-money laundering laws. Prosecutors alleged that the funds had come from a convicted underground banker, and Bei W. had used several fake names and email accounts to avoid being caught.
Chinese national allegedly behind the money laundering
Meanwhile, the authorities also doubt that a Louis Vuitton employee has helped Bei Wi by informing her about the new stocks within the specified price range and was helping in making the structure of the payments so that it stays below the reporting limits. Investigators stated that the company was not able to confirm the identity or raised questions about the continuous high-value cash purchases. A basic, thorough assessment step could have raised red flags.
Authorities blame Louis Vuitton for negligence
The luxury items were then reportedly sent to China and Hong Kong through a gray market that is known as “daigou”. It is a resale model that allows consumers in Asia to buy luxury goods at lower prices and constantly avoid import taxes. Experts have evaluated that the daigou market was at €74‑87 billion at the end of 2023. Authorities believe that such channels may cover the laundering of illegal profits under the appearance of lawful trade.
The Public Prosecution Service continues its probe and is considering criminal action, but no charges have yet been made against Louis Vuitton. The developments from the investigation are not likely to lead to significant actions by next year.
Louis Vuitton and the parent company LVMH, which registered around $100 billion in revenue in 2024, have not issued official comments on the probe.
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