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Dutch Louis Vuitton stores are under investigation for possible ties to a money laundering scheme.
Photo Credit: Willian Justen de Vasconcellos via Unsplash
The well-known luxury goods store, Louis Vuitton, is being investigated for possible connections to an international money laundering scheme. To be specific, the Dutch Public Prosecution Services (OM) have named Louis Vuitton stores in the Netherlands as suspects in a money laundering investigation that involves around €3 million in cash purchases, all made by the same woman.
The main suspect of the scheme, a Chinese woman from Lelystad known publicly only as Bei W., reportedly spent a period of 18 months (September 2021 to February 2023) making various cash purchases under different names and e-mail addresses at different Louis Vuitton stores in the Netherlands. According to the OM, this money – around €3 million in total transactions – were illicit proceeds obtained through criminal activity.
Dirty money, designer bags, and an accomplice
None of the individual purchases crossed the €10,000 legal threshold which would necessitate the store to run a background check on the transaction (checking identification and reporting the cash purchase to authorities), but the OM presses that the fashion house should have rung alarm bells due to the suspicious activity. Additionally, boutiques and stores do have a legal responsibility to alert the authorities to some types of transactions, under Dutch law.
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In addition to Bei W., a staff member at Louis Vuitton is suspected of assisting in the scheme, alerting Bei W. to new items that would remain under the €10,000 threshold and other items that could facilitate the laundering. The person Bei W. received the illicit funds from, an underground banker, has also already been convicted for their involvement in this scheme.
Daigou, the assistant to an international scheme
Specifically, Bei W. is accused of using a shopping system called Daigou, through which buyers purchase luxury goods for people in China to avoid extra import taxes and issues with authenticity of the items. The exact value of the Daigou trading system is unknown, but consultancy firm Re-Hub estimated its value at around €74 billion at the end of 2023. According to the prosecution department of the case, the Daigou trading system is often used by criminal networks to launder money. The OM alleges Bei W. sent the luxury goods to China and Hong Kong as a method of circumventing the high import taxes.
Authorities state that by not acting more firmly in lieu of these suspicious purchases, the brand was complicit in the money laundering scheme, but whether Louis Vuitton will face charges is yet unknown. Proceedings on the case are not expected to resume until next year. The brand has also not responded as of yet to the allegations.
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