Financial Crime World

Serbia Tackles International Financial Fraud with Improved Standards

The Republic of Serbia has made significant strides in combating international financial fraud (IFFs) by strengthening its legal framework and implementing measures to enhance transparency and cooperation between law enforcement agencies. The country’s Anti-Money Laundering Agency (APML) plays a crucial role in early detection of IFFs, sharing intelligence with law enforcement agencies and conducting preventative checks on new customers.

Improving Investigations

Serbia’s system for investigating IFFs is complex, involving multiple entities including the Office of the Higher Prosecutor, police units, tax police, Military Security Agency, and Security Information Agency. While challenges remain, the country has made progress in strengthening its investigative capabilities, with the establishment of task forces led by prosecutors and comprising personnel from different agencies.

  • In 2022, criminal charges were filed against 234 individuals.
  • Indictments were also issued against 120 individuals, resulting in 74 verdicts, most of which were convictions.

Confiscation and Social Reinvestment

Serbia’s confiscation framework is comprehensive, with an independent administrative body responsible for managing seized assets. Assets can be reused for humanitarian purposes if not sold within a year, demonstrating social reinvestment. For example, a seized facility was allocated to the Centre for Protection of Young People.

Civil Society Plays Crucial Role

Non-profit organizations play an important role in broader efforts to counter IFFs in Serbia. While some non-profits have been misused for terrorism financing activities, the risk is considered low to medium. Raising awareness among civil society of the potential misuse of civil society and strengthening civil society through capacity-building are essential.

Recommendations

To enhance the overall approach to countering IFFs in Serbia, several measures are recommended:

  • Improve the legal framework: Enable integrated financial and criminal investigations.
  • Strengthen law enforcement capacities: Enhance parallel financial investigations.
  • Enhance cooperation: Between law enforcement agencies and non-profit organizations.
  • Increase transparency and accountability: In the civil society sector.

By implementing these recommendations, Serbia can further strengthen its efforts to combat international financial fraud and promote a more transparent and accountable financial system.