The Dutch Public Prosecution Service announced on Thursday that the Netherlands branch of French luxury goods maker Louis Vuitton has agreed to pay 500,000 euros (approximately $595,000) to reach an out-of-court settlement in a money laundering investigation.

Prosecutors stated that the luxury brand failed to comply with laws aimed at preventing money laundering and terrorist financing. A 36-year-old woman is suspected of repeatedly using different names to purchase luxury items with cash at Louis Vuitton and other stores.

The woman is alleged to have spent over 2 million euros, believed to be proceeds of crime, between August 2021 and February 2023.

According to the prosecution's statement: "Louis Vuitton violated the Anti-Money Laundering and Anti-Terrorist Financing Act... by failing to adequately prevent customer money laundering. For an extended period, the company did not properly verify the identities of customers making frequent large cash purchases."

A spokesperson for Louis Vuitton's Paris headquarters has not yet commented on the matter.

Prosecutors allege that the woman purchased luxury handbags and shipped them to China for resale, disguising the proceeds as legitimate trade income.

The money laundering case against the woman and two other suspects, including a former sales assistant at a Louis Vuitton store in the Netherlands, remains ongoing.

It is alleged that the assistant would inform the woman about new high-priced handbag arrivals and warn her in advance when her spending approached thresholds requiring suspicious transaction reports.

The prosecution service indicated that the out-of-court settlement with Louis Vuitton's Dutch subsidiary was reached to alleviate pressure on the limited court resources of the Rotterdam District Court.