Louis Vuitton’s Dutch arm pays 500,000 euros to settle a money laundering case
The Hague, Netherlands — The Dutch branch of the France-based luxury goods manufacturer Louis Vuitton The Netherlands has agreed to pay half a million euros ($595,000) in an out-of-court settlement related to a money laundering investigation, the Dutch National Prosecutor’s Office announced Thursday.
Prosecutors said the fashion house did not comply with a law aimed at preventing money laundering and terrorist financing when a 36-year-old woman allegedly repeatedly used different names while spending money “on luxury goods at retailers such as Louis Vuitton.” The woman is suspected of spending more than two million euros in criminal proceeds from August 2021 to February 2023.
“Louis Vuitton violated the Money Laundering and Terrorist Financing (Prevention) Act… and did not do enough to prevent money laundering by its customers. For a long period, the company failed to properly identify customers who repeatedly came in to spend large amounts of cash,” the statement of claim said.
A spokesperson for Louis Vuitton’s head office in Paris did not immediately respond to requests for comment.
Prosecutors alleged that after purchasing the luxury handbags, the woman sent them to China for resale to make the proceeds appear as if they came from a legitimate trade.
A money laundering case is still ongoing against the woman and two other suspects, including a former sales assistant at Louis Vuitton in the Netherlands. The assistant allegedly notified the woman when new, expensive bags came into stock and warned her if her spending exceeded limits that would require Louis Vuitton to alert authorities about suspicious payments.
Prosecutors said the settlement with the Dutch arm of Louis Vuitton was reached out of court “to allow limited courtroom space at the Rotterdam District Court.”
