FIOD

What is the FIOD?

FIOD stands for Fiscal Intelligence and Investigation Service. Its is a specialized criminal investigation service and, as part of the Dutch Tax and Customs Administration, falls (organizationally) under the Ministry of Finance.

What does the FIOD do?

The FIOD is responsible for investigating tax fraud and other forms of financial crime. In addition to tax fraud, such as VAT carousel fraud, this may include money laundering, bankruptcy fraud, and corruption.

Does the FIOD focus on particular themes?

According to its 2024 annual report, the FIOD focused that year on the evasion of sanctions measures, corruption, and dividend stripping. The 2025 Tax Administration annual plan states there will be a focus on VAT fraud (intra-Community VAT fraud and VAT network fraud), BPM fraud (car imports), and Concealed Assets (virtual assets; residence and establishment issues; and international company structures).

How does the FIOD receive its cases?

The Dutch Tax and Customs Administration is a major source of cases for the FIOD. Case referrals are governed by the AAFD protocol. That protocol sets out rules for the referral and disposition of tax offenses as well as customs and benefits offenses. Other bodies also refer cases, such as the Financial Intelligence Unit (FIU) Netherlands. In addition, tips can trigger an FIOD investigation.

What powers does the FIOD have?

The FIOD has a wide range of investigative powers. Well-known examples include searching premises (a home or business search, often referred to as an FIOD raid) to seize accounting records and other evidence, arresting suspects, and interviewing suspects and witnesses. There are also other highly intrusive powers, such as intercepting telephone communications and recording confidential conversations (for example, in an executive office).

Read more in the overview of FIOD powers.

How does an investigation proceed?

Once there is a suspicion, the FIOD typically conducts an in-depth preliminary investigation. In cases of suspected tax fraud, for example, the FIOD first analyzes information from the Tax Administration, such as filed tax returns. Phones may be tapped, and individuals may be placed under covert surveillance. Those involved generally do not notice this.

Then comes the so called “action day” (often a Tuesday): the moment the FIOD’s investigation becomes visible. This usually involves an unannounced search of homes or business premises, the notorious FIOD raid, and the seizure of evidence and assets (bank accounts, cash, jewelry, cars, vessels, inventory, etc.).

Suspects and witnesses are also interviewed, sometimes on the day of the raid and sometimes later.

All FIOD findings are set out in official reports, including statements supposedly made “off the record.” Ultimately, a final case file is submitted by the FIOD to the public prosecutor. The prosecutor then decides whether the case will go to court or be disposed of otherwise.

Experience shows that the lawyer’s role is crucial in this phase as well. Counsel can push for an out-of-court resolution to avoid, for instance, negative media exposure.

How long does an FIOD investigation take?

Most FIOD investigations take a long time, sometimes many years, particularly in international cases where, for example, witnesses abroad must be heard.

What should you do if the FIOD shows up?

Always consult a specialized lawyer. You are dealing with a highly specialized investigative service.

The Public Prosecution Service is specialized as well. Fraud cases are handled by the Functioneel Parket, a national division of the Public Prosecution Service dedicated to combating complex fraud. All of this requires a specialized lawyer who understands how these cases are run.

For practical tips on how to handle various FIOD actions, see this useful overview: FIOD raid instructions.

Media

The media frequently report on FIOD operations, especially when they concern well-known individuals (such as artists, influencers), companies, or financial institutions (e.g., banks). The FIOD also actively publicizes (initiated) investigations on its website (www.fiod.nl).

In general, it is not advisable for suspects to proactively inform the media themselves (“don’t rub a stain”). While the investigation is ongoing, “no comment” is the rule. In some instances, a brief, carefully worded statement can be helpful. Keep in mind that journalists are usually most interested in “bad news.”

Under whose authority does the FIOD operate?

The FIOD operates under the authority of the Public Prosecution Service, typically the Functioneel Parket specialized in fraud matters. The public prosecutor makes the decisions.

What decisions can the public prosecutor make?

The public prosecutor directs the FIOD investigation and decides on the use of certain coercive measures during the process, such as placing a suspect in police custody. Police custody, which can last three days, may be ordered in medium and serious offenses and can be extended once by three days. Pretrial detention may follow.

At the end of the investigation, the prosecutor decides how the case will proceed. The prosecutor may summon one or more suspects to appear before the criminal court, leading to a public hearing.

In appropriate cases, the prosecutor can also impose a penal order. Alternatively, a case may be resolved by settlement or dismissal, in which event no judge is involved.

What is the role of a lawyer in FIOD cases?

A lawyer plays a vital role in any criminal investigation. Counsel is first and foremost your trusted confidant, to whom you can disclose everything. Lawyers have a right of non-disclosure (legal privilege). Everything you tell your lawyer must remain confidential. That said, there have been high-profile cases in which the FIOD nonetheless gained access to privileged communications (confidential email correspondence).

Throughout the investigation, your lawyer monitors whether the FIOD follows the rules and requests access to the case file so that a proactive defense can be mounted.

If the FIOD wants to interview you as a suspect, you have the right to consult a lawyer beforehand. Counsel can advise whether to invoke your right to remain silent or to make a statement. Your lawyer must also be able to attend the interview itself.

After the FIOD investigation concludes, your lawyer will aim for an out-of-court resolution where possible, or, if that is not feasible, consider procedural agreements. Such agreements are increasingly common and encouraged by the judiciary, which is overburdened.

If the case proceeds to a criminal court hearing, your lawyer will prepare you thoroughly, for example, how to conduct yourself in court and what questions to expect from the judges. Counsel will also play an active role at the hearing, such as examining witnesses, raising (procedural) defenses, and delivering a persuasive plea.

Why Hertoghs

Hertoghs is a boutique firm that has handled FIOD matters for decades. The FIOD is, in many ways, our firm’s natural counterpart. Our expertise enables us to craft the best strategy. We are accustomed to assisting at every stage of an FIOD investigation, at the outset (or earlier), during ongoing proceedings before the court of first instance, on appeal, or in cassation.

As a rule, the earlier we are involved, the better. Early engagement enables a truly proactive defense and the best possible steering toward a favorable outcome.