Bibob assessment: serious danger
A Bibob investigation forms the basis for the risk assessment. This assessment is relevant for two categories within the Bibob legislation. Below you can read how this assessment is established.
What is a Bibob investigation?
A Bibob investigation is conducted based on the Bibob Act to assess whether a permit, subsidy or public procurement can be misused for criminal activities. The purpose of the act is to prevent authorities from unknowingly facilitating criminal activities.
During the investigation, the government examines core considerations from the act. These are the so-called A-ground and B-ground. Article 3 of the Bibob Act forms the basis for determining whether there is serious danger. If there is serious danger, this will in many cases lead to refusal or revocation of a permit.
What is the A-ground?
The A-ground concerns financial benefit from criminal offenses.
There is serious danger based on the B-ground if:
- The applicant or involved parties have obtained financial benefit from criminal offenses.
- This benefit can be used to finance the permit or public procurement.
Example: A real estate project is financed with money originating from fraud or money laundering.
What is the B-ground?
The B-ground concerns the misuse of a permit, subsidy or public procurement for criminal activities. This means that the permit itself is used or can be used to commit criminal offenses.
There is serious danger based on the B-ground if:
- The applicant is personally involved in criminal offenses or is related to criminal offenses.
- There is a real risk that the permit will be used to facilitate criminal activities, such as money laundering, drug trafficking or fraud.
How is serious danger determined?
Serious Danger on the A-ground
The following components must be established to reach the qualification of serious danger:
a. facts and circumstances that indicate or reasonably suggest that the person involved is related to criminal offenses
b. in case of suspicion, the seriousness thereof,
c. the nature of the relationship and
d. the size of the obtained or obtainable benefits.
Serious danger on the B-ground
The following components must be established for the B-ground:
a. facts and circumstances that indicate or reasonably suggest that the person involved is related to criminal offenses that were committed in activities that correspond or are connected with activities for which the decision is requested or has been granted,
b. in case of suspicion, the seriousness thereof,
c. the nature of the relationship and
d. the number of committed criminal offenses.
Being related to criminal offenses | Business partnership
An applicant or interested party is related to criminal offenses if:
a. he has committed these criminal offenses himself,
b. he directly or indirectly provides or has provided leadership to, has or has had control over or has provided or has provided assets to a legal entity within the meaning of Article 51 of the Criminal Code that has committed these criminal offenses, or
c. another person has committed these criminal offenses and this person is a manager of the person involved, or has control over the person involved, is a financier of the person involved or a person who is or has been in a business partnership with the person involved.
Business partnership
In practice, the business partnership often forms the key in the Bibob investigation and risk assessment. Non-transparent structures are devised to conceal persons who would not themselves pass the Bibob investigation. The business partnership forms the safety net to map these structures and prevent them. The business partnership appears in many forms in case law. Our firm advises clients on the existence or non-existence of the business partnership and litigates regarding wrongful revocations or refusals of permits on this basis.
What are the Consequences of Serious Danger?
- Refusal of the permit, subsidy or public procurement.
- Revocation of existing rights.
- Possible notification to law enforcement agencies.
Do you have questions about the risk assessment, the provided Bibob advice, the business partnership or need help with a Bibob investigation? Contact us for expert advice.
