Official title of the project

Project against Money Laundering and Terrorist Financing in Serbia (MOLI Serbia)

Project information

Region / City
Cities
Serbia
Total budget of programme / project

2200000

Implementation period
2010. Nov - 2014. May
Expected results
  • Result 1 - Legislative proposals are available to make Serbian legislation compliant with the applicable European and international standards;
  • Result 2 - Public support to efforts to prevent and control economic crime is increased;
  • Result 3 - The capacity of the APML to carry out its duty in line with the AML/CTF legislation and Moneyval recommendations is increased;
  • Result 4 - The capacity of law enforcement agencies, relevant service of the Ministry of Finance and judiciary to detect, investigate, prosecute and adjudicate in money-laundering, terrorist financing and economic crime cases (including tracing criminal money on the internet) is increased;
  • Result 5 - The capacity of regulators, supervisors and obliged institutions to fulfill their obligations under the AML/CTF legislation, to implement the Moneyval recommendations and take measures based on risk analysis is increased;
  • Result 6 - Mechanisms and procedures are reinforced for interagency cooperation and information exchange within the relevant bodies of the AML/CTF system in Serbia, including between public and private sector;
  • Result 7 - The technical infrastructure to collect, analyse and exchange information necessary to prevent and control money laundering, terrorist financing and predicate financial crimes is improved.
Beneficiary

Administration for the Prevention of Money Laundering (APML), Ministry of Finance

Partners

Ministry of Interior; Public Prosecutor’s Office of the Republic of Serbia; Ministry of Justice; Supreme Court of Cassation; Judicial Academy; Police Academy; National Bank of Serbia; Securities Commission; Professional Associations; Journalists’ Associations and NGOs.

Summary of the project

Economic and organised crime continues to be a serious threat for the national economy of Serbia and to the development of democracy and the rule of law. Organised Criminal Groups (OCGs) are involved in a range of activities that cost Serbia substantial revenue annually. It is estimated that money laundering alone costs the Serbian economy between 3%-5% of GDP every year. Concerning terrorist financing, there have been no criminal reports filed according to the statistics provided and there seem to be no confirmed cases of terrorist financing in Serbia to date. In 2009, MONEYVAL (the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism) Report rated Serbia as compliant with 1 of 40+9 FATF (Financial Action Task Force) recommendations, largely compliant with 21, partially compliant with 21 and con-compliant with 5. The EU 2009 Progress Report on Serbia concluded, among others, that suspicious transactions are only limited to the banking sector, the number investigations and convictions in money laundering cases remained low, the expertise and capacity of the criminal investigators, public prosecutors and judges still need to be improved. The MOLI Serbia project is programmed under IPA 2010 and is designed to address those problems and will serve as a tool for providing and supporting reforms and interventions in the fight against money laundering and countering the financing of terrorism.

Programme/Project objectives

The main goal of the Project against Money Laundering and Terrorist Financing in Serbia (MOLI Serbia) is to contribute to democracy and the rule of law through the prevention and control of money laundering, terrorism financing, and other forms of economic and financial crime in Serbia in accordance with European and other international standards. Its purpose is to enhance the capacity of the anti- money laundering and counter-terrorist financing system in Serbia in terms of legislation, skills and operational capacities.

Specific objectives

• Ensure that the Serbian AML/CFT system is in greater compliance with the relevant international standards; • Improve the public awareness of the threats of economic crime for the society and the everyday life of the citizens as well as of the necessity for the state to take effective measures to minimise these threats; • Capacity building of the Administration for the Prevention of Money Laundering (APML), law enforcement agencies, prosecutors, judges, financial institutions and other relevant professionals and institutions performing their duties efficiently with regard to the prevention and control of economic crime, money laundering and terrorist financing; • Ensure and enhance the effective interagency co-operation and co-ordination mechanisms; • Support to the increase efficiency of the AML/CTF system by strengthening IT services and tools to collect and analyse financial data.

  • Ensure that the Serbian AML/CFT system is in greater compliance with the relevant international standards;
  • Improve the public awareness of the threats of economic crime for the society and the everyday life of the citizens as well as of the necessity for the state to take effective measures to minimise these threats;
  • Capacity building of the Administration for the Prevention of Money Laundering (APML), law enforcement agencies, prosecutors, judges, financial institutions and other relevant professionals and institutions performing their duties efficiently with regard to the prevention and control of economic crime, money laundering and terrorist financing;
  • Ensure and enhance the effective interagency co-operation and co-ordination mechanisms;
  • Support to the increase efficiency of the AML/CTF system by strengthening IT services and tools to collect and analyse financial data.