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Serbia Takes Steps to Combat Illicit Financial Flows
Belgrade, Serbia - In a bid to combat illicit financial flows (IFFs), Serbia has taken several steps to enhance its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The country’s authorities have implemented measures to improve financial intelligence, investigations, confiscation, and cooperation with non-profit organizations.
Improving Financial Intelligence
According to recent reports, the Anti-Money Laundering Authority (APML) plays a crucial role in detecting IFFs, sharing intelligence with law enforcement agencies, and collecting financial information from obligated entities. However, there are concerns about the lack of suspicious transactions reports from designated non-financial businesses and professions, such as lawyers and accountants.
Enhancing Investigations
Serbia’s system for investigating IFFs is complex, involving multiple entities, including the Office of the Higher Prosecutor, police units, tax authorities, and the Security Information Agency. However, there are concerns about coordination between different agencies and the effectiveness of a centralized reporting database.
Confiscation and Asset Management
Regarding confiscation, Serbia has a comprehensive legal framework governing the temporary and permanent confiscation of assets originating from criminal activities. An independent administrative body is responsible for managing seized assets, which can be used for humanitarian purposes or sold.
Cooperation with Non-Profit Organizations
In terms of non-profit organizations, civil society plays an important role in combating IFFs. According to recent reports, there are 36,219 active non-profit organizations registered in Serbia, but the risk of money laundering and terrorism financing is considered low to medium.
Recommendations
To enhance its approach to countering IFFs, policymakers are recommended to:
- Improve the legal framework to enable integrated financial and criminal investigations.
- Strengthen law enforcement capacities for parallel financial investigations.
- Promote cooperation with non-profit organizations.
- Raise awareness among civil society about the potential misuse of funds.
- Strengthen capacity-building efforts for non-profit organizations.
By implementing these recommendations, Serbia can further enhance its efforts to combat illicit financial flows and promote a more transparent and stable financial system.