Having been in a Rolex authorised dealership, when another customer was told his watch had popped up on Rolex”s “lost and found register”, they do indeed retain stolen watches and pass them to the police. The rightful owner then can have the devil of a time getting it back.
See this example from Paul Thorpe, a retired watch dealer.
View: https://youtu.be/i-OdtwRNa4Y
Yes, retain and hand over to the Police. As to the video. There must be a more to the story. Rolex is an international brand and established company and would not keep someone else's property. Make no sense.