Main Conclusions
Organized Crime Groups
Organized crime groups have maintained their relatively stable structure, with clear hierarchy and clear distribution of roles (leader, key members, lower-ranking members). These groups are still very prepared to adapt to changes in their surroundings, on the criminal market and in smuggling routes, as well as to accept new ways of functioning, including the application of modern technology. In this context, the emergence of cryptocurrencies, inter alia, has opened completely new possibilities and methods for conducting illegal transactions and legalizing OCG proceeds. In the past few years, large quantities of narcotics, as the primary activity of these groups, have been seized throughout the world and a large number of their members, who originate from Western Balkan countries, have been arrested. This can result in their regrouping and fight for dominance on the criminal market.
Drugs
On the international illicit market, including that in Serbia, the accessibility of cocaine is higher than ever, which is, inter alia, a result of increased production following lockdown during the COVID-19 pandemic as well as greater demand. The quantity of seized cocaine in 2022 was three times higher than in 2019. Organized crime groups from the Balkans, including those from Serbia, play a significant role in the smuggling of cocaine from South America to Western European countries. Marijuana is still the most widely present type of drug on the narcotics market. Its production under natural conditions has lately increased in Serbia, as has the production under artificial conditions, in which more and more money is invested. In addition, marijuana is smuggled from Albania, as the largest producer in the region, to North Macedonia, Greece and Montenegro. It is also delivered to AP K&M, and from there to central Serbia. Heroin is smuggled to Serbia from Albania, Montenegro and Bulgaria, and it arrives in central Serbia from the territory of AP K&M. It originates from Afghanistan. A smaller quantity remains on the Serbian drug market, while its larger part is transported to European drug markets. There is less heroin on the domestic drug market than before, because it is increasingly smuggled through maritime routes. The number of synthetic drug users is constantly on the rise, and the presence of synthetic drugs (especially amphetamine) on the drug market is increasing. They are smuggled from Western Europe, especially from the Netherlands and Germany, and partly from Bulgaria. Their chemical diversity is a challenge, because it is easily achieved in the production process. OCGs from Serbia are involved in the purchase and distribution of precursors, while they produce and smuggle pre-precursors. There has also been a sudden increase in the diversion of domestic and foreign pharmaceutical drugs, which are smuggled into EU member states through Hungary and Croatia.
Human Smuggling
Human smuggling has assumed global proportions in the last ten years, with an extremely high dark figure. It is motivated, above all, by financial gain and lenient criminal policy, while smugglers offer their services to socially and economically vulnerable categories. In Serbia, the situation has not changed significantly since 2019, given that the majority of migrants still arrive from war-torn zones of Africa and Asia. They pass through Turkey, Greece, Bulgaria and North Macedonia and arrive to our country, whence they are smuggled further to Western European countries. People are smuggled by globally connected criminal groups, which operate in countries of origin, transit and destination. Both Serbian and foreign nationals, including members of the migrant population, are involved in human smuggling in Serbia. Multiple methods of illegal crossing of the state border have been identified: the “four ladder” option for crossing the green border, crossing at the border crossing by avoiding border control or using forged documents, or using legitimate documents which belong to other people who bear some physical resemblance, avoiding border control by hiding in passenger and cargo vehicles, hiding in cargo trains, as well as smuggling in suitable places on Drina, Tisa and Danube rivers.
Human Trafficking
Human trafficking represents a global problem and is one of the most widespread criminal activities. Typical for Serbia is internal human trafficking, where a number of domestic citizens are exposed to different types of exploitation. To a lesser extent, Serbia is a country of transit and destination of foreign victims of trafficking. Sexual exploitation remains the dominant form of human trafficking, not only in Serbia, but throughout the world. The internet is increasingly used for recruitment and advertising of exploiters’ services, but also as the instrumentality and place of commission primarily of sexual exploitation. Victims of child trafficking are subjected to sexual exploitation, forced marriages, coercion to commit crime and forced mendicity. The labor exploitation of domestic and foreign nationals in Serbia is present in the construction industry, agriculture and hospitality services. Exploiters in these fields are motivated by the possibility of short-term employment, replaceability of workforce and insufficient supervision over the implementation of labor regulations.
Weapons
Serbia remains a country of transit for smuggled weapons, and to a lesser extent the country of their origin. The smuggling routes have remained unchanged. Routes still mainly go through Hungary and Croatia, towards Western European countries, as the final destination. Weapons which arrive to Serbia are smuggled from Bosnia and Herzegovina and North Macedonia, while some are purchased in Bulgaria and AP Kim. The smuggling of convertible weapons is still a topical issue. The largest part of such weapons produced in Turkey is smuggled from Bulgaria, while a smaller part is smuggled from Bosnia and Herzegovina. Converted weapons are smuggled through Serbia to Western European and Scandinavian countries, while smaller quantities remain in our country. Since Serbia is on the route used for smuggling firearms and convertible weapons from the Western Balkans into Western European countries, no significant oscillations of the illegal market, nor significant price changes have been observed in the previous period. Mostly small arms and light weapons are present on the illegal market, but there are still weapons subjected to proliferation. Organized crime groups, which are mostly poly-criminal, most frequently engage in the trafficking and smuggling of weapons. Smaller quantities of weapons are also trafficked by individuals, including those who have never committed crimes before.
Property Crime
Robbery, as one of the most serious types of violent property crime, is on a steady decline – in 2022 it dropped by more than 40% compared to 2019, the decline was a result of the application of security and safety devices at targeted facilities. Robberies of sales outlets, street robberies and robberies at residential buildings are prevalent. Vehicle thefts have registered a steady downward trend since 2019 and the number of stolen vehicles in 2022 was by 20% lower than in 2019. Passenger vehicles were stolen most frequently. Stolen vehicles originate from various European countries and they are transported through wider countris region. After falsification of documentation and identification marks, certain number of vehicles stay on the territory of Serbia and some part of them is returning to the EU, while some vehicles are transported towards B&H, Montenegro, North Macedonia, Albania and Turkey. Number of vehicles is stransported to AP K&M. Vehicles which are stolen in Serbia are smuggled to European countries. There are multiple MOs of vehicle theft, including some that involve technical innovations and continuous finding of new tools to keep up with the development of anti-theft devices by manufacturers. Although the number of stolen vehicles is dropping, this issue requires constant attention since it is an organized criminal activity that causes major material damage and generates considerable proceeds which are included into legal financial flows.
Cultural Goods Crime
Cultural goods crime is distinguished by the way in which it is committed and by its consequences, because cultural assets are invaluable for the community to which they belong. In some cases, illegally acquired cultural assets are sold through the internet or social media. Due to its vast cultural heritage, the Republic of Serbia is “under the impact” of different forms of this crime. Paintings which are part of cultural heritage are constantly stolen, and attempts are made to sell them or take them out of Serbia. Lately, illegal excavation of archeological sites and theft of artifacts have become frequent, due to the black market demand. International cooperation and adequate professional training represent the main requirements for the effective suppression of all forms of this serious crime.
Smuggling and Illicit Trade in Excisable Products
The illicit cigarette market in Serbia and the Western Balkan region has significantly reduced as a result of cessation of smuggling operations through the duty free zone of the Montenegrin port of Bar. Smaller quantities of cigarettes arrive to the Serbian black market from AP K&M bearing the “Kosovo” excise stamps or without excise stamps, as well as from North Macedonia, where they are significantly cheaper than in Serbia. An increase has been observed in illicit trade and smuggling of ‘snus’ (teabag-like sachets dissolved in the mouth) and hookah (waterpipe) tobacco and flavorings. These products are smuggled from the EU to Serbia.
The illicit trade in cut tobacco mostly takes place within Serbia and there have been no significant changes, except in the method of distribution, where the sending through courier services prevails, and in the method of communication between “cutters” and customers, which increasingly takes place online. Illegal tobacco farms decreased by more than 99% against 2016 as a result of destruction based on remote detection. In general, the tobacco and tobacco product market is constantly shifting towards new and alternative tobacco-free products, which, however, contain nicotine or are flavored but nicotine free.
Oil derivatives are most frequently smuggled through Serbia on international ships along the Danube, and the perpetrators are less- or well-equipped organized crime groups. Oil derivatives are also falsely declared during importation to Serbia and transported across the state border (to smaller distances) in the fuel tanks of modified vehicles.
Money Laundering
Continuous improvement of the business environment, which is closely related to the technological progress in all spheres of the society, represents one of the main factors that are favorable for money laundering. Predicate crimes, which carry the greatest risk from money laundering, are tax evasion, unlawful production and circulation of narcotics, abuse of office and corruption crimes. The most vulnerable part of the financial sector are banks, and of the non-financial sector, the real estate trade. Money laundering techniques differ depending on the business sector in which they are applied. Organized money laundering has two basic forms: OCGs which engage in money laundering professionally (‘professional launderers’) and OCGs to which money laundering is a side activity which completes their respective criminal activities. Future money laundering MOs will largely follow the progress of IT, which will result in more difficult detection and proving of this type of crime, while the appearance of virtual currencies will represent a special challenge.
Tax Crimes
The suppression of tax crimes is one of the priorities in the fight against white-collar crime. The budget of the Republic of Serbia runs the risk of losing revenues mostly through the following types of tax: VAT, excise tax, corporate profit tax and personal income tax. The number of so-called front and shell companies which entities that perform regular business activities use in order to avoid the payment of public revenues has increased. More complex tax crimes with elements of organization are present, among which a specific type of tax fraud has been detected – tax fraud during in the importation of used motor vehicles from EU member states. It has also been observed that a large number of business entities do not engage in the statutory process of liquidation after the termination of business activity, thus preventing tax audits. The development of e-commerce has been conducive to the expansion of the grey economy and tax evasion.
Counterfeiting of Money
There is no major threat from this type of crime in Serbia, and this does not differ from the previous period. Perpetrators range from individuals to criminal groups that have different degrees of organization. Moden technology makes it possible to make good and convincing counterfeits, and the large-scale accessibility of computer equipment and software programs facilitates the commission of this criminal activity by perpetrators with limited knowledge. Owing to the establishment of the National Central Office for Counterfeit Money within Criminal Investigation Directorate of Serbian MoI, as a one-stop-shop for all information and procedures regarding counterfeit money, most of the counterfeit banknotes had been found and seized before they were put into circulation in Serbia. In the past four years three illegal printing houses were detected in Serbia, where euros, dinars, dollars and other currencies had been counterfeited, as well as three OCGs. As for the structure of identified counterfeits, one-hundred-dollar bills and 50-, 100- and 10-euro banknotes had the biggest share.
Cybercrime
Contemporary development of ICT and its increasing presence in all spheres of modern society have resulted in an increase of cybercrime. A constant increase in the number of users of social media, mobile platforms and apps is certainly one of the most important reasons for the upward trend in this type of crime. Like in the previous years, online sexual exploitation of children is one of the most serious forms of cybercrime. A new trend is a larger number of cases of unauthorized use of copyrighted works. The offense of unauthorized access to a protected computer, computer network and electronic data processing accounts for nearly 80% of the total number of crimes against the security of computer data. A large number of reports have been received for the criminal offense of endangerment of security, which is mostly committed through social media, while the online illicit trade in pharmaceutical drugs is also present. Ransomware attacks and different types of abuse virtual currencies or cryptocurrencies also exist. A special challenge in this area will be AI-based technology and machine learning as the instrumentalities of crime, as well as the appearance of highly sophisticated forms of cybercrime.
Environmental Crime
Environmental crime in Serbia mostly refers to: failure to undertake environmental protection measures, uncontrolled emissions of pollutants into water, air and soil, illegal hazardous waste management and crime against biodiversity.
Different types of pollution and environmental damage caused by individuals and legal entities are on the rise, and pollution is one of the most serious forms of environmental crime because it jeopardizes the lives and health of people or causes the devastation of plant and animal resources and frequently even entire ecosystems. Environmental crime is particularly dangerous because of its regional and international aspects. There have been cases of legal and illegal warehouses containing hazardous waste, as well as of waste transit from western and central EU member states through Serbia to Southeast European countries. The smuggling of protected animal species which are on the CITES list has continued through one of the most frequently used corridors in this part of Europe which passes through Serbia. Illegal hunting of bird species which are protected in Serbia has also continued. Forest theft is still a special problem, because it creates huge material and environmental damage. Forest thefts are especially frequent along the administrative line with AP K&M, where they are committed by organized groups from that territory.
Due to the complexity of environmental crimes, the Ministry of Interior of the Republic of Serbia has established a special organizational unit that specializes in combating all forms of environmental crime.