Report on mortgage fraud by criminals held back for months

Criminals have used forged documents to buy between 6,000 and 11,000 homes in the Netherlands in recent years, according to an unpublished government-commissioned report described by NOS. Sources told the broadcaster that the report has been at the Ministry of Justice and Security for more than six months, although it was due to be finished in March.

What happened

NOS Politiek reports that criminals have been getting mortgages by submitting false paperwork with their applications. They then use the homes they buy for illegal activities. The figure of 6,000 to 11,000 homes comes from a report by the Financial Expertise Centre (Financieel Expertise Centrum, FEC). The previous Dutch cabinet asked the centre to investigate the “nature and scale” of mortgage fraud in the Netherlands.

According to NOS, the fraud relies on forged documents such as payslips, employer statements, annual accounts and tax returns. Members of the Dutch House of Representatives (Tweede Kamer), the Dutch Banking Association (Nederlandse Vereniging van Banken, NVB) and the professional body for notaries have been seriously concerned about this type of fraud for several years.

The issue came up in parliament during a hearing on what the Dutch call “undermining” crime, meaning organised crime that seeps into legitimate society and the economy. NVB chair Medy van der Laan told MPs that the homes are used for “money laundering, illegal letting, labour exploitation, drug crime and other forms of undermining”. She said that “mortgage fraud is happening increasingly” and added: “There is exploitation, fraud and other truly terrible things. And it disrupts the liveability of a neighbourhood.”

The problem is not new. NOS notes that in 2024 the Financieele Dagblad reported on a criminal network that used fraudulent applications to buy hundreds of homes in the Amsterdam region between 2018 and 2023. The properties were used to store money and drugs, among other things, and to house labour migrants. According to that reporting, the fraudsters were mostly Bulgarian labour migrants, hired by accounting firms to forge payslips. The VVD and NSC were among the parties that asked the cabinet of the time about the case. NOS adds that the party Pro has also been pressing for measures for some time.

The Royal Dutch Association of Civil-law Notaries (Koninklijke Notariële Beroepsorganisatie, KNB) has also spoken out. It blames “inadequate legislation” and “limited possibilities for information exchange”.

Why it matters if you live in Netherlands

The source points to several ways this affects residents, including the many internationals who rent, buy or work in the Netherlands.

• Mortgage applicants may face new checks. NOS reports that banks and notaries want to be able to verify an applicant’s income with the Dutch Tax and Customs Administration (Belastingdienst). Van der Laan said this should not be a problem: “We respect all the sensitivities around privacy. We only want to check, when there is an application, whether the information we have received is correct.” If this becomes possible, the income documents you submit with a mortgage application could be checked directly against tax records.
• Tenants and workers are among those at risk. According to the NVB, the homes are used for illegal letting and labour exploitation. In the Amsterdam case reported by the Financieele Dagblad, labour migrants were housed in the properties. Anyone who rents privately or takes housing arranged through work may be affected by the practices the report describes.
• Neighbourhoods feel the effects. Van der Laan said the fraud disrupts the liveability of neighbourhoods, as the homes are used for activities that include drug crime and storing money and drugs.
• It is a live political issue. Several parties have raised the subject in parliament. If you follow Dutch politics or vote in the Netherlands, this is one of the themes in the wider debate on organised crime.

What to watch next

The most immediate question is when the report will be published. Pro MP Mutluer has called for the report and its recommendations to be sent to the House of Representatives as soon as possible. NOS reports that the ministry has had the report for more than six months, and that parties have been waiting for months for its findings.

NOS also reports that a parliamentary debate on the subject is scheduled for next week. Watch for whether the government publishes the FEC’s findings before or during that debate, and whether it responds to the banks’ and notaries’ requests for access to income data held by the Tax and Customs Administration.

The KNB’s complaints about weak legislation and limited information sharing suggest that any response could involve changes to the law. Whether any such changes are proposed, and how they would deal with the privacy concerns Van der Laan acknowledged, will matter to anyone planning to buy a home in the Netherlands.

Source: NOS Politiek