Definition of money laundering in serbia
Prevention and fight against money laundering in Serbia has been prescribed by the Law on Prevention of Money Laundering and Terrorist Financing and the Law on Restriction of Disposal of Property for the Purpose of Prevention of Terrorism. More important for combating money laundering is also the Law on Determination of the Origin of Property and Special Tax.
Money laundering is a crime closely related to other crimes, but particularly associated with organized crime. An individual or group that obtains property by committing a crime must launder the money. When money laundering is easy to do, criminals are more motivated to continue with their criminal activities. When money is hard to launder, criminals have trouble enjoying illegally obtained property.
The main world organizations that prescribe standards in the field of prevention of money laundering in Serbia are:
- United Nations Security Council;
- Interpol;
- Fatf;
- Moneyval;
- as well as many other regional organizations.
Republic of Serbia is the member of the most important organizations for combating money laundering and terrorist financing. This obliges it to prescribe standards in this area and harmonize legislation with international organizations.
Money laundering in Serbia – for whom are there obligations?
Natural and legal person subject to the Law on Prevention of Money Laundering in Serbia are:
- banks;
- authorized exchange offices;
- investment fund management companies;
- voluntary pension fund management companies;
- financial leasing providers;
- insurance companies licensed to conduct life insurance and insurance brokerage activities when conducting life insurance activities;
- broker-dealer companies;
- organizers of special games of chance in casinos and organizers of games of chance through electronic means of communication;
- accounting companies and independent auditor;
- electronic money institutions;
- payment institutions;
- real estate brokers;
- factoring companies;
- contractors and legal entities providing accounting services;
- tax advisors;
- public postal operator established in the Republic of Serbia in accordance with the Law on Postal Services and providing payment services in accordance with the Law on Provision of Payment Services;
- person engaged in postal services;
- providers of services related to digital assets.
In some situations, attorneys have special duties for anti- money laundering in Serbia:
- assisting in the planning or execution of transactions for a party in connection with the purchase or sale of real estate;
- managing client assets;
- opening or disposing of a bank account (bank account, savings deposit, or securities account);
- raising funds necessary for the establishment, operation and management of businesses;
- establishing, operating, or managing a company or foreign legal entity;
- conducting a financial transaction or a transaction related to real estate in the name and on behalf of the party.
Money Laundering in Serbia – main Obligation
The main obligation is to conduct a risk assessment in accordance with the existing methodology and legal standards. In accordance with the risk assessment, it is necessary to collect the documents required by law. In addition, other documents required by law are necessary, especially the law on internal control performed, the law on internal training and the list of indicators. It is also necessary that the transactions you conduct are clearly defined and structured so that your business activities do not conflict with the Law on Prevention of Money Laundering and the Law on Foreign Exchange Transactions. Any suspicious transaction must be reported to the relevant authorities.
Cash limit in Serbia
A maximum of 10.000 euros can be transferred when entering or leaving the Republic of Serbia.
Cash payments in Serbia
In Serbia, you can pay a maximum of 10.000 euros in cash. Everything that needs to be paid in a larger amount is done by transferring it through a bank account.
Reporting of executed transactions
Cash transactions of 15.000 euros or more must be reported to the Serbian anti-money laundering authority. In addition, any transaction, even of a smaller amount, must be reported if there are reasonable evidence to suspect that such transaction is the activity made for the money laundering in Serbia.