Sonja Holleeder was widowed when her husband, Cor van Hout, also a member of the kidnap gang, was killed in 2003.
Dutchnews.nl reported Holleeder's inheritance has been under investigation for years. It was thought to include ransom money paid to her brother, Willem, and her husband following the kidnapping of beer mogul Freddy Heineken in 1983.
A representative for the public prosecution department confirmed the out-of-court settlement Wednesday, and said Holleeder paid the government $1.49 million, $1.36 million of which was money from criminal gains.
Dutchnews.nl said $21.73 million was paid to secure the release of Heineken and his chauffeur, much of which was found buried in woods near Zeist, but more than $5 million was never recovered.