Underground Risks: Money Laundering and Financial Crimes on the Rise in Republic of Macedonia

Introduction

Despite efforts to combat financial crimes, the Republic of Macedonia remains vulnerable to money laundering and organized crime groups. A recent report by the Ministry of Interior Affairs has revealed that while the number of unregistered criminal acts is decreasing, the overall threat level remains high.

Cash Transactions and Lack of Transparency

According to the report, cash transactions still represent a significant part of the total amount of transactions in the country, with many taking place outside the banking sector. This lack of transparency creates an ideal environment for money laundering and other financial crimes to thrive.

Strategic Location and Criminal Activity

The Republic of Macedonia’s strategic location at the crossroads of the Balkan Peninsula makes it a hub for human trafficking, migrant smuggling, and illegal drug trafficking. Criminal groups from neighboring countries use the country as a transit point or destination for these illicit goods and services.

Money Laundering and Economic Crimes

The report highlights that money laundering in the country is often linked to economic criminal acts such as: * Abuse of official position and authority * Tax evasion * Illicit drug trafficking

In 2011-2015, the total damage from economic crimes amounted to over €13.5 billion.

Organized Crime Groups and Financial Activities

Organized crime groups operating in the country are mostly involved in: * Illegal drug trafficking * Migrant smuggling * Violent crime at national and international levels

These groups have been known to invest their illegally acquired funds in financial markets, legal businesses, movable, and immovable property.

Cooperation between Criminal Groups

The report warns of cooperation between domestic and international criminal groups, who work together to commit crimes such as: * Illicit drug trafficking * Human trafficking * Product smuggling * Illegal arms trafficking * Stolen luxury vehicles * Credit card fraud

Use of Legitimate Businesses

While the majority of organized crime groups do not have large financial resources, they use legitimate businesses to: * Increase their power * Conceal criminal activities * Launder money * Invest illegally acquired assets

Conclusion

The Ministry of Interior Affairs has emphasized the need for law enforcement agencies to implement parallel financial investigations with criminal investigations to fully clarify criminal acts and provide solid evidence of money laundering. The report concludes that while the overall number of registered crimes is declining, the threat level remains high, highlighting the importance of continued efforts to combat financial crimes in the country.