The Rise of Organized Crime in Bosnia and Herzegovina

Organized crime has become a significant problem in Bosnia and Herzegovina, with various activities posing a threat to the country’s economic development. This report highlights the key issues, including theft and resale of stolen vehicles, narcotics trade, human trafficking and migration, money laundering, identity theft, and tax evasion.

Key Organized Crime Activities

• Theft and Resale of Stolen Vehicles: Although there has been a decrease in these crimes from 2013 to 2015, they still pose a significant problem.
• Narcotics Trade: Organized criminal groups use modern technology to set strategies for illegal trade, identify smuggling routes, and plan other illicit activities.
• Human Trafficking and Migration: Criminals exploit advanced technologies to facilitate human trafficking and migration.
• Money Laundering: They use various methods to legalize their ill-gotten gains, including purchasing real estate, construction, and business facilities, privatization of enterprises, and transferring funds abroad.
• Identity Theft: Original identification documents have been procured by criminals from the region, leading to identity thefts of Bosnia and Herzegovina citizens.
• Tax Evasion: This is one of the most noticeable models in organized crime, arising from illegal statutory changes of companies preceding pre-bankruptcy and bankruptcy proceedings.

The Impact of Organized Crime on Economic Development

Organized crime has a very bad impact on the economic development of Bosnia and Herzegovina. The final goal of being involved in all types of organized crimes is to acquire money which is placed in legal money flows, the last phase of which is called “money laundering”. Tracked money transactions linked with organized criminal groups’ activities uncover the financial earnings being acquired illegally, most often by legalizing it through real estate purchase and participation in construction of buildings and other objects.

The Complexity and Sophistication of Organized Crime

It’s worth noting that the report highlights the complexity and sophistication of organized crime in Bosnia and Herzegovina, which represents a great challenge to developed countries, let alone countries with limited material capacity. The emerging threat from the use of the latest achievements in the field of information technology requires greater understanding and more effective measures to combat it.