Illicit Crime Cash ‘Flowing’ Through Bosnia, Serbia, Montenegro – Report

Millions of euros generated from corruption, tax evasion and organized crime are moving through Bosnia and Herzegovina, Montenegro and Serbia every year, a new report by the Global Initiative Against Transnational Organized Crime, GI-TOC, published on Wednesday, says.

The NGO's report, "Illicit financial flows in Bosnia and Herzegovina, Montenegro and Serbia: Key drivers and current trends", notes three main components of illicit financial flows: corruption, tax evasion and avoidance and illegal markets and exploitation. The report focuses on three case studies for each country.

In Serbia, it says, infrastructure and construction are significant sources of illicit money. "A number of project construction contracts have allegedly been awarded to Chinese and Russian contractors in exchange for loans," it says. "Additionally, major assets sold to European investors may have been subject to political influence and sub-optimal pricing," it adds.

On Bosnia and Herzegovina, GI-TOC experts found that "a proportion of public money is channelled to nongovernmental organizations (NGOs) and civil society organizations (CSOs) based on political favouritism".

It noted a case study from the Canton of Sarajevo.

"The 2021 budget for the municipality was €20 million, of which (according to confidential information) around €410 000 is routinely given to CSOs without a public consultation or competition," the report says.

A view of the the ongoing construction works at Belgrade Waterfront in July 2017. Photo: EPA/KOCA SULEJMANOVIC

In Montenegro, it says, "the defence industry is considered very high governance risk due to a number of scandals". The report noted that Montenegro in 2013 abolished a law that restricted...