Serbia remains on FATF list as high risk country for money laundering and corruption

Serbia is still among the black-listed countries that have failed to combat money laundering and terrorist financing – says the latest report by the International Independent Authority – Financial Action Task Force (FATF).

The FATF, which is an intergovernmental organisation on the initiative of the G7 to develop policies to combat money laundering, released the report on 19th October, which states that t is said that eleven countries, including Serbia, remain on the list of high-risk states because they do not fully implement offered recommendations to prevent money laundering and the financing of terrorism. 

Specifically, the progress report states that the deterrence mechanism against money laundering and the financing of terrorist organizations is not functioning properly because, on one hand, the work of law firms is not properly supervised, while on the other, the relevant state institutions do not have complete and updated information on companies’ ownership. 

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Other problems include the lack of monitoring of the financial transactions of political figures as well as the inadequate control of electronic money transactions and of the banking activities that legalize money laundering. 

All of the above shortcomings were highlighted in the previous FATF progress report last June. 

Back then, Serbia’s political leadership had turned a blind eye to them, considering that the motives are political, while the Serbian Prime Minister, Ana Brnabic had denounced the US’ intervention in the drafting of the report. 

Nevertheless, Belgrade has accepted the FATF Criteria for Fighting Money Laundering and Terrorist Financing already since 2012 and has pledged to implement its recommendations. 

The report also states that Serbia has progressed in certain areas like the national risk assessment and implementation of money laundering regulation.

(Nova Ekonomija, IBNA, 24.10.2018)


This post is also available in: Italiano

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