The Dutch public prosecution department has reached an out-of-court settlement with three Swiss companies and their director in connection with money laundering, fraud and membership of a criminal organisation.

The companies have agreed to hand over property worth nearly €8m and bank accounts containing some €80,000 to the Dutch authorities in return for exemption from prosecution.

The Swiss firms owned a number of brothels in the Netherlands and some 50% of their turnover was kept off the books, the public prosecutor said in a statement.

Local sex boss

The undeclared money was laundered in Switzerland and then used to buy more brothels in the Netherlands which were then rented to a local sex industry boss. The practice has been going on since 1984, the department said.

The Dutch connection and two others still face criminal proceedings. That case is likely to be heard in 2015.

The settlement follows raids on a number of properties made in January 2013. In total, brothels were located in 12 different local authority areas, the department said.