Financial Crime World

Judicial System Makes Progress, Corruption Remains a Challenge

The country’s judicial system has made significant progress in recent months, reversing the backsliding of previous years. This progress is largely attributed to the adoption of a credible new judicial reform strategy and amendments to key legislation.

Progress Made

  • The Special Prosecutor’s Office is now facing less obstruction from the courts, allowing it to work more effectively.
  • A legislative framework is in place to tackle corruption, but final court rulings on high-level corruption cases are still limited.

Challenges Ahead

  • Corruption remains a serious problem in many areas, despite some progress made.
  • The capacity of institutions to tackle corruption has shown structural and operational deficiencies, and political interference remains a risk.

Fighting Organized Crime

The country has reached a level of preparation in the fight against organized crime, with a legislative framework that is broadly in line with European standards. However, efforts to implement strategies must continue, particularly in addressing money laundering and financial crimes.

Key Areas for Improvement

  • Coordination among all relevant stakeholders is essential to effectively combat organized crime.
  • The country must intensify its efforts to address money laundering and financial crimes.

Protection of Fundamental Rights

The legal and institutional framework for protecting fundamental rights is largely in place, but full implementation is still needed. The country has made progress in diversifying its exports and higher-value added output in the manufacturing sector, as well as intensifying trade and investment relations with the EU.

Challenges Ahead

  • The country must continue to work on implementing the legal and institutional framework for protecting fundamental rights.
  • Further efforts are needed to ensure that these rights are effectively protected and respected.

Ability to Assume Membership Obligations

The country is moderately prepared to assume the obligations of membership in most areas, including competition, transport, and energy. However, further efforts are needed across the board, particularly in areas where the country is at an early stage of preparation, such as freedom of movement of workers.

Key Areas for Improvement

  • The country must intensify its efforts to prepare for membership obligations.
  • Further coordination among relevant stakeholders is essential to ensure effective implementation.

Migration and Refugee Crisis

The country has continued to manage the effects of the migration and refugee crisis, negotiating with the European Union on a status agreement for actions by the European Border and Coast Guard Agency. Efforts have been made to improve the legal framework, asylum system, and migration management.

Challenges Ahead

  • Systematic registration of migrants and protective-sensitive profiling is still needed.
  • The country must continue to work on implementing the legal framework and improving its asylum system.

Political Crisis

The country has finally overcome its deep political crisis, which arose from revelations of widespread illegal interception of communications in 2015. The “Pržino Agreement” has been largely implemented, and significant progress has been made in implementing the “Urgent Reform Priorities”.