HIGH-VALUE DEALER Louis Vuitton is fined for a Luxury‑Goods Laundering Scheme.

The Dutch arm of luxury fashion house Louis Vuitton has agreed to pay a €500,000 penalty after prosecutors concluded the retailer failed to apply adequate anti–money laundering (AML) controls during a prolonged period of suspicious, high-value cash transactions.

• The threshold for mandatory reporting in the Netherlands at the time was €10,000 in cash; it was later reduced to €3,000 from 1 January 2026.
• Investigators say Louis Vuitton did not adequately verify the customer’s identity or purchase patterns, which constitutes a breach of the country’s Money Laundering and Terrorist Financing Prevention Act (Wwft).
• The settlement allows the company to avoid a full criminal trial in the Netherlands, though the underlying criminal case against three individuals continues.
• The public prosecution service opted for an out-of-court settlement in part to conserve limited courtroom capacity at the Rotterdam District Court.
• While the settlement resolves the matter for Louis Vuitton’s Dutch entity, the criminal proceedings involving the three suspects remain active.

Prosecutors concluded that:

• The Dutch Louis Vuitton business did not implement sufficient due diligence controls, particularly regarding repeated large cash transactions and the use of multiple aliases.

THE INVESTIGATION

Dutch prosecutors began scrutinising the retailer after revelations that a 36-year-old woman from Lelystad allegedly used illicit funds to purchase numerous Louis Vuitton handbags and other high-value items.

According to investigators:

• She is suspected of laundering more than €2 million between August 2021 and February 2023 by buying luxury goods in the Netherlands and shipping them to China in removal-style boxes for resale at a profit.
• This process, sometimes associated with informal “DAIGOU‑TYPE” TRADE [see noted below], can create the appearance of legitimate commercial activity while disguising criminal proceeds.

Evidence collected by Dutch authorities included boxes prepared for shipment, chat messages, receipts, and CCTV footage.

Prosecutors also allege that the suspect repeatedly used different names when making cash purchases and moved between multiple Louis Vuitton outlets.

Over time, these behaviours should have triggered the retailer’s customer‑verification obligations under Dutch AML regulations, which require high-value dealers to verify identities and report unusual transaction patterns.

Complicating the picture further, a former Louis Vuitton sales assistant is among the suspects in the ongoing criminal case.

He is alleged to have provided the Lelystad woman with inside information, including alerts when certain high-demand handbags were back in stock and warnings about cash-spending levels that might trigger mandatory reporting requirements. A second woman, believed to have assisted in the scheme, is also under investigation.

What Is an Informal “Daigou‑Type” Trade?

• Daigou (代购) literally means “buying on behalf of someone else.” It refers to informal cross-border shopping and resale, most commonly involving individuals outside China purchasing goods—especially luxury items—and then shipping or carrying them into China for resale at a profit.
• Although it can be conducted legally, this type of trade often operates in the grey market, exploiting loopholes to avoid import taxes, customs duties, or regulatory scrutiny.  

Key Characteristics of Daigou Trade

1. Overseas personal shopping - Daigou operators buy goods abroad (e.g., luxury bags, cosmetics, baby formula) and send them to customers in China, often using social media platforms such as WeChat to communicate and market goods.

2. Motivated by price differences and trust, Chinese consumers use daigou because:

• Luxury goods are often cheaper overseas due to lower taxes.
• There is a long-standing concern about product authenticity and safety within China.

3. Operates outside formal commercial channels - Daigou is considered part of a “grey market”—neither fully illegal nor fully regulated. Buyers and sellers may use informal shipping methods or personal luggage to move goods, sometimes circumventing customs declarations.  

4. Can involve individuals or organised networks - Although often portrayed as individual personal shoppers, the daigou business can also involve syndicated groups, intermediaries, and structured operations capable of moving high-value items in large quantities.

Why It Matters for AML Contexts

In AML investigations—such as the Louis Vuitton Netherlands case—daigou-type activity is relevant because:

• High-value luxury goods are easily resold, making them an effective mechanism for value transfer and money laundering.
• Repeated cash purchases, especially under threshold levels or under different names, can be used to disguise the origin of illicit funds.

While legitimate daigou activity exists, criminals can mimic or exploit the model to launder money through the sale of luxury goods.

Source

• [\[dutchnews.nl\]](https://www.dutchnews.nl/2026/02/louis-vuittons-dutch-arm-fined-e500000-over-money-laundering
• [\[nltimes.nl\]](https://nltimes.nl/2026/02/12/luxury-brand-louis-vuitton-fined-eu500000-dutch-money-laundering-case
• [\[swikblog.com\]](https://swikblog.com/louis-vuitton-netherlands-500k-euro-money-laundering-settlement/
• [en.wikipedia.org], https://en.wikipedia.org/wiki/Daigou
• [thatsmags.com]  https://www.thatsmags.com/beijing/post/31975/explained-what-is-the-daigou
• [asianaustr...tudies.org] https://asianaustralianstudies.org/the-daigou-phenomenon-the-chinese-overseas-personal-shopping-experience/