Louis Vuitton faces money laundering probe after shopper drops $3.5M on luxury handbags

Core Viewpoint - Louis Vuitton is under investigation in the Netherlands for allegedly facilitating money laundering through cash purchases made by a Chinese national totaling approximately $3.5 million over an 18-month period [1][2]. Group 1: Investigation Details - A Chinese national, identified as Bei W., purchased luxury goods at Louis Vuitton stores in the Netherlands from 2021 to 2023, prompting Dutch authorities to investigate the brand for potential money laundering activities [2][4]. - The purchases were made in cash, allegedly sourced from a convicted underground banker, raising concerns about connections to organized crime [4][5]. - Dutch authorities suspect that at least one Louis Vuitton employee may have assisted the suspect in structuring payments to avoid legal reporting thresholds [5][6]. Group 2: Money Laundering Techniques - The cash transactions were structured to ensure no single purchase exceeded 10,000 euros, the threshold for mandatory reporting under Dutch law [6][7]. - The technique used by Bei W. is known as "structuring" or "smurfing," which is designed to evade detection by authorities [7]. - The purchased items were reportedly shipped to China and Hong Kong to circumvent high import taxes, a practice referred to as "daigou," which is linked to a significant underground trade valued at over $86.7 billion in 2023 [7]. Group 3: Company Impact - Louis Vuitton Netherlands has been officially named as a suspect in the investigation, although it remains uncertain whether formal charges will be filed [8]. - Louis Vuitton is a flagship brand of LVMH, which generates a substantial portion of the group's $48 billion in fashion revenue [9]. - LVMH, the world's largest luxury goods conglomerate, reported nearly $100 billion in revenue for 2024, indicating the brand's significant role in the luxury market [10].