“If you can do it without consequences, then you should do it”.

What are illicit Financial Flows, or IFFs? And why do they matter?

Every illicit market, from drug trafficking, people smuggling, the illegal wildlife trade, arms trafficking etc. all are connected to IFFs. IFFs are about the movement of money across borders that is illegal in some way.

The money could be from a criminal act, like corruption or its money associated with the illicit markets above. Perhaps, it could be legitimately earned money that is transferred in a way that evades taxation, like being paid in cash and not declaring it or money is funnelled into complex corporate schemes and secrecy jurisdictions. Or perhaps its ultimate use is something like terrorist financing or funding organised criminal activity.

Dirty money is a global problem, according to the IMF, it makes up between 2-5% (up to $5.25 trillion dollars) of global GDP.

Given the scale of the problem, in this episode we will focus in on the Western Balkans in South-Eastern Europe through three IFFs - money laundering investigations in Kosovo, corruption and the role of the private sector in Albania, and tax evasion in Bosnia & Herzegovina.

Speaker(s):

Dardan Kocani, Field Coordinator for Kosovo for the South Eastern Europe Observatory at the Global Initiative against Transnational Organized Crime

Sokol Toska, Legal Auditor in Albania and expert in money laundering and illicit financial flows.

Anesa Agovich, Field Coordinator for Bosnia and Herzegovina at the Global Initiative Against Transnational Organized Crime

Links:

Illicit financial flows in Bosnia and Herzegovina, Montenegro and Serbia: Key drivers and current trends

Illicit Financial Flows in Albania, Kosovo and North Macedonia: Key drivers and current trends

Global Initiative Against Transnational Organized Crime

Global Organized Crime Index

Research Links:

 https://www.europol.europa.eu/cms/sites/default/files/documents/europol-review-2016.pdf

https://www.visualcapitalist.com/visualizing-the-105-trillion-world-economy-in-one-chart/

https://www.ibe.org.uk/resource/tax-avoidance-as-an-ethical-issue-for-business.html

https://www.transparency.org/en/corruptionary/tax-evasion

https://albaniandailynews.com/news/wanted-for-incinerators-affair-stela-gugallja-detained-in-austria

https://top-channel.tv/english/former-minister-is-sentenced-to-5-8-years-in-prison-for-corruption-with-the-incinerators-his-second-is-found-innocent/

https://telegraf.al/i-pakategorizuar/boset-e-inceneratoreve-denohen-per-here-te-dyte-ne-arrati-policia-dhe-spak-nuk-arrijne-dot-te-zoto-mertiri-e-gugallja/

https://www.eu-ocs.com/albania-seizes-waste-disposal-facility-amid-fraud-allegations/

https://balkaninsight.com/2022/01/06/short-circuit-the-stunning-simplicity-of-top-level-corruption-in-albania/

https://balkaninsight.com/2023/07/10/albania-prosecutors-seek-former-deputy-pm-arben-ahmetajs-arrest/

https://balkaninsight.com/2020/09/28/the-incinerator-how-a-politically-connected-albanian-built-an-empire-on-waste/

https://balkaninsight.com/2023/09/25/albania-former-minister-sentenced-for-corruption/

https://balkaninsight.com/2023/08/01/albania-seizes-tirana-waste-disposal-company-over-alleged-fraud/

https://www.cna.al/english/aktualitet/mirel-mertiri-bosi-real-i-inceneratorit-elbasan-mesazhet-e-plota-qe-b-i362014

https://albaniandailynews.com/news/spak-asks-meta-to-find-out-location-of-former-minister-ahmetaj

https://www.voxnews.al/english/investigim/dosja-buka-arben-ahmetaj-doli-mbi-vendimin-e-formes-se-prere-te-gjyka-i50069

http://www.panorama.com.al/privatizimi-i-fabrikes-spak-kemi-prova-demi-1-5-milione-euro-ahmetaj-nxjerr-dokumentet-e-bejne-per-presion-duan-te-me-mbyllin-gojen/

https://www.euractiv.com/section/politics/short_news/albanian-government-to-continue-concession-with-companies-implicated-in-financial-crime/

https://www.transparency.org/en/projects/cases-project/data/public-private-partnership-for-waste-incinerators

https://assets.publishing.service.gov.uk/media/5a7f6aa0ed915d74e33f64bf/20160607_Handbook_for_the_Concession_Contracts_Regulations_2016_final.pdf

https://www.transparency.org/en/projects/cases-project/data/public-private-partnership-for-waste-incinerators

https://single-market-economy.ec.europa.eu/single-market/public-procurement/legal-rules-and-implementation/concession-contracts_en

https://egmontgroup.org/wp-content/uploads/2022/01/2021-Financial.Analysis.Cases_.2014-2020-3.pdf

https://egmontgroup.org/

https://www.coe.int/en/web/corruption/-/financial-intelligence-unit-of-kosovo-attends-the-24th-egmont-group-plenary-meeting

https://egmontgroup.org/wp-content/uploads/2022/01/2021-Financial.Analysis.Cases_.2014-2020-3.pdf

https://www.bbc.co.uk/programmes/p07nkd84/episodes/downloads

https://www.fbi.gov/wanted/topten/ruja-ignatova/@@download.pdf

https://www.bbc.co.uk/news/stories-50435014

https://www.transparency.org/en/cpi/2022

https://www.businessinsider.com/fbi-russian-oligarch-roman-abramovich-shell-companies-luxury-jets-2022-6?r=US&IR=T

https://www.icij.org/investigations/pandora-papers/oligarchs-jets-yachts-luxury/

https://www.theartnewspaper.com/2022/02/02/pandora-papers-reveal-1600-works-of-art-in-tax-havens

https://www.bbc.com/news/world-africa-51299018

https://www.redflagalert.com/articles/risk/a-guide-to-shell-companies

https://www.icij.org/investigations/fincen-files/

https://www.icij.org/investigations/paradise-papers/

https://www.icij.org/investigations/panama-papers/

https://complyadvantage.com/insights/structuring-vs-smurfing/

https://www.acamstoday.org/from-smurfs-to-mules-21st-century-money-laundering/

https://www.investopedia.com/terms/s/smurf.asp

https://www.nationalcrimeagency.gov.uk/news/money-laundering-cash-couriers-smuggled-100-million-in-suitcases

https://books.google.co.uk/books/about/Money_Laundering_and_Illicit_Financial_F.html?id=gkiCzQEACAAJ&redir_esc=y

https://oxfordre.com/criminology/display/10.1093/acrefore/9780190264079.001.0001/acrefore-9780190264079-e-708;jsessionid=ADF024BF24F76DA5720F4017B035E029

https://financialcrimeacademy.org/the-history-of-money-laundering-2/