_________________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Kosovo is primarily a transit country for drugs destined for Europe and is
not a significant narcotics producer, nor have police found domestic
narcotics refining or production labs. The Government of Kosovo (GOK)
faces challenges in combating narcotics trafficking due to uncontrolled
border areas and possible corruption. The GOK adopted its national
counternarcotics strategy in July 2009, which ends in June 2012. A new
strategy for July 2012-June 2015 is currently under development.
Kosovo made progress on counternarcotics initiatives in 2011,
particularly by improving coordination among agencies involved in
counternarcotics. Following centralization of narcotics units under the
Kosovo Police (KP) Directorate for Investigation of Narcotics Trafficking
and re-election of unit leadership in July 2011, the Deputy Prime Minister
for Internal Affairs instituted interagency, bi-monthly working group
meetings to review implementation of the national strategy. In addition,
the Ministry of Internal Affairs (MOIA) doubled the number of narcotics
investigators, drawing from existing police investigators, and training
them in counternarcotics operations.
Heroin and other drugs enter Kosovo primarily from Afghanistan, by way
of Turkey and the Middle East, and via Macedonia, while cocaine and
marijuana primarily enter through Albania and Montenegro. KP statistics
show that, from January through September 2011, marijuana constituted
the bulk of seizures (96.8 kg), followed by heroin (33.1 kg) and cocaine
(2.6 kg). Challenges to KP in reducing supply include limited resources,
tight-knit family and clan structures that impede criminal investigations,
and a general lack of prosecutors dedicated to narcotics crimes.
Statistics on seizures, arrests, and prosecutions are largely unreliable
and inconsistent, making assessment of supply reduction efforts difficult.
Figures on drug users in Kosovo are also unreliable, though an NGO
named “Labyrinth,” says the most frequently cited number is 10,000 to
15,000. KP officers speculate that demand for drugs is low because drug
use runs against cultural norms and controlled substances are
prohibitively expensive for most Kosovars. Labyrinth reports that over
two-thirds of its drug rehab patients are unemployed, however, so
poverty does not seem to be a significant barrier to drug use. The
Ministries of Health and Education conduct drug education programs,
community police officers educate students about risks of drug use, and
NGOs, such as Labyrinth, assist with anti-drug education and drug
treatment. However, lack of social services, such as follow-up treatment,
as well as cultural taboos against drug use, complicate efforts to
rehabilitate addicts.
As a matter of government policy, Kosovo does not encourage drug
trafficking and no senior officials are known to engage in such activities.
While laws prohibit corruption that facilitates narcotics trafficking or
discourages investigation and prosecution of drug offenses, allegations
persist that narcotics move across Kosovo’s borders by truck, bus, and
private vehicle, often with the permission of customs officers who accept
bribes to turn a blind eye. To fight corruption, KP increased border
officer salaries by 40% and instituted anti-corruption training. In addition,
closed-circuit TVs are due to be installed at border stations in early
2012, which should help deter and detect corrupt practices.
Kosovo is not yet a UN member-state and is effectively limited to
agreements with the 85 countries that have recognized it. Thus, it is
party to relatively few international conventions and protocols or bilateral
agreements relating to counternarcotics. Kosovo cooperates and
exchanges information with neighbors through informal bilateral and
multilateral meetings. KP reports that data sharing with Albania and
Macedonia is good. Negotiations are underway to sign a data sharing
agreement with Montenegro as well.
Kosovo cooperates with the U.S. on counternarcotics issues. Kosovo
officials receive technical assistance and training from the State
Department-funded Department of Justice Office of Overseas
Prosecutorial Development and Training (OPDAT) and International
Criminal Investigative Training Assistance Program (ICITAP) assistance
programs in Kosovo. In 2011, OPDAT and ICITAP trained police and
prosecutors on search warrant fundamentals, electronic surveillance,
building a conspiracy case, financial investigations, asset forfeiture, and
handling informants. OPDAT and ICITAP promote police-prosecutor task
forces and plea bargaining as tools to identify narcotics trafficking
organizations. As one of the successor states, Kosovo recognizes the
extradition treaty between the United States and the Kingdom of Serbia,
which entered into force in 1902. However, two denials of extradition
requests by Kosovo’s courts – one, on territoriality and the other on
nationality – have called into question its effectiveness. There is no
bilateral treaty on mutual legal assistance.
Another State Department managed program, Export Control and
Related Border Security (EXBS) has donated equipment and training
which also improved the capabilities of customs officers and led, as a
spin-off benefit, to increased seizure of narcotics in 2011. Full
implementation of Kosovo’s 2010 anti-money laundering law, drafted with
significant assistance from the USG, should further hamper the activities
of narcotics traffickers.
The GOK made efforts in 2011 to advance its counternarcotics strategy.
The GOK must continue to provide training and funding to
counternarcotics programs to reduce trafficking. In addition, KP and
prosecutors must increase their capacity to conduct thorough
investigations and prosecutions of narcotics trafficking, organized crime,
and money laundering to get at the roots of illegal trafficking. This may
require higher prioritization of counternarcotics in a criminal justice
system already stretched thin by competing demands and limited
resources. Continued international support, combined with the
appropriate level of attention from and coordination by the GOK, would
go far toward advancing Kosovo’s counternarcotics objectives.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2)
Kosovo is a source, destination, and possibly a transit country for
women and children who are subjected to sex trafficking, and children
subjected to forced begging. Most foreign victims of forced prostitution
are young women from Eastern Europe including Moldova, Albania,
Poland, and Serbia. Kosovar women and children are subjected to
forced prostitution within Kosovo and also in countries throughout
Europe. NGOs reported that child beggars were vulnerable to forced
labor in Kosovo. Police continue to report that internal trafficking
involving Kosovar Serbs may also occur in north Kosovo. IOM reported
that for the fifth year in a row, it had assisted more victims of internal
trafficking than victims of transnational trafficking.
The Government of Kosovo does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. The government elevated its anti-trafficking
police section to directorate status and more than tripled the number of
anti-trafficking investigations. It identified more trafficking victims than in
prior years and offered a comprehensive range of government-funded
services to those victims. All certified victims of trafficking participated in
criminal investigations this year. The government’s prevention efforts
were very strong; it conducted a diverse and innovative trafficking
awareness raising campaign in the fall of 2010. Trafficking cases were
slow to resolve, however, and the rate of conviction was lower than in
prior years. Challenges in victim identification persisted this year, as the
government identified an average of one victim for every 10 raids
conducted, and few victims of trafficking were identified among a highly
vulnerable population of child beggars. Finally, there were investigations
and prosecutions of public officials for complicity in trafficking, but there
were no convictions.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2010
Overview: The Government of Kosovo cooperated with the United States
on terrorism-related issues and made progress in passing legislation to
fight terrorism, including the Kosovo Security Strategy, the Law on Trade
of Strategic Goods, and the Law on the Prevention of Money Laundering
and Terrorist Financing. The government’s capacity to enforce security-
related legislation remained a concern, however. The Kosovo Police
Counter Terrorist Unit (CTU) was still developing its capacity to conduct
effective counterterrorism operations, and needed to develop effective
cooperation and coordination between departments within the Kosovo
Police.
Legislation and Law Enforcement: Kosovo made progress in adopting
counterterrorism legislation. The Kosovo Security Strategy was
approved by the Kosovo Assembly on September 23. It outlines the
responsibilities of the Kosovo Police (KP), Kosovo Customs (KC), the
Kosovo Border Patrol (KBP), and the Kosovo Intelligence Agency (AKI),
to coordinate their counterterrorism efforts and “ensure that Kosovo will
not become a host to individuals or groups that intend to incite violent
extremism and train or equip potential terrorists.”
The KP’s CTU was primarily responsible for Kosovo's counterterrorism
efforts. Its capacity to conduct effective operations remained under-
developed. The CTU increased to 27 officers, and it continued to train
and develop the capacities of its officers. Training took place in
conjunction with U.S. funded programs, the OSCE, and European
partners – especially Turkey – in areas including surveillance,
interrogation, investigation, and counterterrorism intelligence and
analysis. The CTU’s operational efforts were hampered by a lack of inter-
departmental coordination and cooperation.
Kosovo continued to process travelers on entry and departure at one
international airport and at 11 land border sites with the Personal
Identification Secure Comparison and Evaluation System.
Countering Terrorist Finance: On September 30, with U.S. government
technical assistance, Kosovo adopted a comprehensive anti-money
laundering law, the Law on the Prevention of Money Laundering and
Terrorist Financing (LPMLTF). The law imposed international and
Financial Action Task Force-compliant reporting obligations, including
reporting suspicious and structured transactions. The LPMLTF also
established an independent Financial Intelligence Unit, which must report
any transaction above 10,000 Euros, suspicious transactions, and
structured transactions.
Regional and International Cooperation: Within the constraints posed by
its financial situation, the Government of Kosovo has expanded its
efforts to cooperate with international partners to address the flow of
individuals illegally transiting Kosovo and to identify and screen potential
threats both domestically and from abroad. The KBP leadership holds
regular monthly meetings with their counterparts from Albania,
Macedonia, and Montenegro, and the KP is pursuing a border
operations initiative, which includes cross border cooperation and
communication, the sharing of intelligence, and joint operations with the
border police of the three countries. The KP also supported regional law
enforcement relationships and worked with the governments of Bulgaria
and Turkey on border related issues.
During the year, the Kosovo government cooperated closely with the
United States in an attempt to extradite a Kosovo national to face
criminal prosecution on terrorism-related charges in the United States.
The Office of the State Prosecutor and the Special Prosecution Office of
the Republic of Kosovo presented the United States’ request for the
fugitive’s extradition, but a panel of the Kosovo Supreme Court,
composed of two EU Rule of Law Mission Supreme Court judges and
one Kosovo Supreme Court Judge, denied the extradition request.
_________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
US State Dept Narcotics Report 2012 (introduction):
Kosovo is primarily a transit country for drugs destined for Europe and is
not a significant narcotics producer, nor have police found domestic
narcotics refining or production labs. The Government of Kosovo (GOK)
faces challenges in combating narcotics trafficking due to uncontrolled
border areas and possible corruption. The GOK adopted its national
counternarcotics strategy in July 2009, which ends in June 2012. A new
strategy for July 2012-June 2015 is currently under development.
Kosovo made progress on counternarcotics initiatives in 2011,
particularly by improving coordination among agencies involved in
counternarcotics. Following centralization of narcotics units under the
Kosovo Police (KP) Directorate for Investigation of Narcotics Trafficking
and re-election of unit leadership in July 2011, the Deputy Prime Minister
for Internal Affairs instituted interagency, bi-monthly working group
meetings to review implementation of the national strategy. In addition,
the Ministry of Internal Affairs (MOIA) doubled the number of narcotics
investigators, drawing from existing police investigators, and training
them in counternarcotics operations.
Heroin and other drugs enter Kosovo primarily from Afghanistan, by way
of Turkey and the Middle East, and via Macedonia, while cocaine and
marijuana primarily enter through Albania and Montenegro. KP statistics
show that, from January through September 2011, marijuana constituted
the bulk of seizures (96.8 kg), followed by heroin (33.1 kg) and cocaine
(2.6 kg). Challenges to KP in reducing supply include limited resources,
tight-knit family and clan structures that impede criminal investigations,
and a general lack of prosecutors dedicated to narcotics crimes.
Statistics on seizures, arrests, and prosecutions are largely unreliable
and inconsistent, making assessment of supply reduction efforts difficult.
Figures on drug users in Kosovo are also unreliable, though an NGO
named “Labyrinth,” says the most frequently cited number is 10,000 to
15,000. KP officers speculate that demand for drugs is low because drug
use runs against cultural norms and controlled substances are
prohibitively expensive for most Kosovars. Labyrinth reports that over
two-thirds of its drug rehab patients are unemployed, however, so
poverty does not seem to be a significant barrier to drug use. The
Ministries of Health and Education conduct drug education programs,
community police officers educate students about risks of drug use, and
NGOs, such as Labyrinth, assist with anti-drug education and drug
treatment. However, lack of social services, such as follow-up treatment,
as well as cultural taboos against drug use, complicate efforts to
rehabilitate addicts.
As a matter of government policy, Kosovo does not encourage drug
trafficking and no senior officials are known to engage in such activities.
While laws prohibit corruption that facilitates narcotics trafficking or
discourages investigation and prosecution of drug offenses, allegations
persist that narcotics move across Kosovo’s borders by truck, bus, and
private vehicle, often with the permission of customs officers who accept
bribes to turn a blind eye. To fight corruption, KP increased border
officer salaries by 40% and instituted anti-corruption training. In addition,
closed-circuit TVs are due to be installed at border stations in early
2012, which should help deter and detect corrupt practices.
Kosovo is not yet a UN member-state and is effectively limited to
agreements with the 85 countries that have recognized it. Thus, it is
party to relatively few international conventions and protocols or bilateral
agreements relating to counternarcotics. Kosovo cooperates and
exchanges information with neighbors through informal bilateral and
multilateral meetings. KP reports that data sharing with Albania and
Macedonia is good. Negotiations are underway to sign a data sharing
agreement with Montenegro as well.
Kosovo cooperates with the U.S. on counternarcotics issues. Kosovo
officials receive technical assistance and training from the State
Department-funded Department of Justice Office of Overseas
Prosecutorial Development and Training (OPDAT) and International
Criminal Investigative Training Assistance Program (ICITAP) assistance
programs in Kosovo. In 2011, OPDAT and ICITAP trained police and
prosecutors on search warrant fundamentals, electronic surveillance,
building a conspiracy case, financial investigations, asset forfeiture, and
handling informants. OPDAT and ICITAP promote police-prosecutor task
forces and plea bargaining as tools to identify narcotics trafficking
organizations. As one of the successor states, Kosovo recognizes the
extradition treaty between the United States and the Kingdom of Serbia,
which entered into force in 1902. However, two denials of extradition
requests by Kosovo’s courts – one, on territoriality and the other on
nationality – have called into question its effectiveness. There is no
bilateral treaty on mutual legal assistance.
Another State Department managed program, Export Control and
Related Border Security (EXBS) has donated equipment and training
which also improved the capabilities of customs officers and led, as a
spin-off benefit, to increased seizure of narcotics in 2011. Full
implementation of Kosovo’s 2010 anti-money laundering law, drafted with
significant assistance from the USG, should further hamper the activities
of narcotics traffickers.
The GOK made efforts in 2011 to advance its counternarcotics strategy.
The GOK must continue to provide training and funding to
counternarcotics programs to reduce trafficking. In addition, KP and
prosecutors must increase their capacity to conduct thorough
investigations and prosecutions of narcotics trafficking, organized crime,
and money laundering to get at the roots of illegal trafficking. This may
require higher prioritization of counternarcotics in a criminal justice
system already stretched thin by competing demands and limited
resources. Continued international support, combined with the
appropriate level of attention from and coordination by the GOK, would
go far toward advancing Kosovo’s counternarcotics objectives.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2)
Kosovo is a source, destination, and possibly a transit country for
women and children who are subjected to sex trafficking, and children
subjected to forced begging. Most foreign victims of forced prostitution
are young women from Eastern Europe including Moldova, Albania,
Poland, and Serbia. Kosovar women and children are subjected to
forced prostitution within Kosovo and also in countries throughout
Europe. NGOs reported that child beggars were vulnerable to forced
labor in Kosovo. Police continue to report that internal trafficking
involving Kosovar Serbs may also occur in north Kosovo. IOM reported
that for the fifth year in a row, it had assisted more victims of internal
trafficking than victims of transnational trafficking.
The Government of Kosovo does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. The government elevated its anti-trafficking
police section to directorate status and more than tripled the number of
anti-trafficking investigations. It identified more trafficking victims than in
prior years and offered a comprehensive range of government-funded
services to those victims. All certified victims of trafficking participated in
criminal investigations this year. The government’s prevention efforts
were very strong; it conducted a diverse and innovative trafficking
awareness raising campaign in the fall of 2010. Trafficking cases were
slow to resolve, however, and the rate of conviction was lower than in
prior years. Challenges in victim identification persisted this year, as the
government identified an average of one victim for every 10 raids
conducted, and few victims of trafficking were identified among a highly
vulnerable population of child beggars. Finally, there were investigations
and prosecutions of public officials for complicity in trafficking, but there
were no convictions.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2010
Overview: The Government of Kosovo cooperated with the United States
on terrorism-related issues and made progress in passing legislation to
fight terrorism, including the Kosovo Security Strategy, the Law on Trade
of Strategic Goods, and the Law on the Prevention of Money Laundering
and Terrorist Financing. The government’s capacity to enforce security-
related legislation remained a concern, however. The Kosovo Police
Counter Terrorist Unit (CTU) was still developing its capacity to conduct
effective counterterrorism operations, and needed to develop effective
cooperation and coordination between departments within the Kosovo
Police.
Legislation and Law Enforcement: Kosovo made progress in adopting
counterterrorism legislation. The Kosovo Security Strategy was
approved by the Kosovo Assembly on September 23. It outlines the
responsibilities of the Kosovo Police (KP), Kosovo Customs (KC), the
Kosovo Border Patrol (KBP), and the Kosovo Intelligence Agency (AKI),
to coordinate their counterterrorism efforts and “ensure that Kosovo will
not become a host to individuals or groups that intend to incite violent
extremism and train or equip potential terrorists.”
The KP’s CTU was primarily responsible for Kosovo's counterterrorism
efforts. Its capacity to conduct effective operations remained under-
developed. The CTU increased to 27 officers, and it continued to train
and develop the capacities of its officers. Training took place in
conjunction with U.S. funded programs, the OSCE, and European
partners – especially Turkey – in areas including surveillance,
interrogation, investigation, and counterterrorism intelligence and
analysis. The CTU’s operational efforts were hampered by a lack of inter-
departmental coordination and cooperation.
Kosovo continued to process travelers on entry and departure at one
international airport and at 11 land border sites with the Personal
Identification Secure Comparison and Evaluation System.
Countering Terrorist Finance: On September 30, with U.S. government
technical assistance, Kosovo adopted a comprehensive anti-money
laundering law, the Law on the Prevention of Money Laundering and
Terrorist Financing (LPMLTF). The law imposed international and
Financial Action Task Force-compliant reporting obligations, including
reporting suspicious and structured transactions. The LPMLTF also
established an independent Financial Intelligence Unit, which must report
any transaction above 10,000 Euros, suspicious transactions, and
structured transactions.
Regional and International Cooperation: Within the constraints posed by
its financial situation, the Government of Kosovo has expanded its
efforts to cooperate with international partners to address the flow of
individuals illegally transiting Kosovo and to identify and screen potential
threats both domestically and from abroad. The KBP leadership holds
regular monthly meetings with their counterparts from Albania,
Macedonia, and Montenegro, and the KP is pursuing a border
operations initiative, which includes cross border cooperation and
communication, the sharing of intelligence, and joint operations with the
border police of the three countries. The KP also supported regional law
enforcement relationships and worked with the governments of Bulgaria
and Turkey on border related issues.
During the year, the Kosovo government cooperated closely with the
United States in an attempt to extradite a Kosovo national to face
criminal prosecution on terrorism-related charges in the United States.
The Office of the State Prosecutor and the Special Prosecution Office of
the Republic of Kosovo presented the United States’ request for the
fugitive’s extradition, but a panel of the Kosovo Supreme Court,
composed of two EU Rule of Law Mission Supreme Court judges and
one Kosovo Supreme Court Judge, denied the extradition request.
_________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
|
|
Sanctions:
Kosovo is regarded as being part of the geographical region of
the Western Balkans and therefore falls under the US sanction
order as follows: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/balkans.aspx
The European Union adopted Council Regulation (EC) No
1295/98 on 22 June 1998. The Regulation provided, among other
matters, for a freeze on the funds of the Governments of the
Federal Republic of Yugoslavia (FRY) and the Republic of Serbia.
The restrictive measures were subsequently modified to include a
ban on investment in the FRY and the Republic of Serbia.
Council Regulation (EC) No 2488/2000 lifted the investment ban
and the financial sanctions in respect of the FRY and the Republic
of Serbia. However, specific sanctions still applied to former
President Slobodan Milosevic and those persons associated with
him.
Commission Regulation (EC) No 1205/2001 modified the financial
sanctions to cover only those funds belonging to Mr Slobodan
Milosevic, and certain members of his family and other close
associates. The Regulation had the effect of amending the list of
persons in Annex I of Council Regulation (EC) No 2488/2000 to
whom the financial sanctions apply.
For further information:
http://www.hm-treasury.gov.uk/fin_sanctions_yugoslavia.htm
http://ec.europa.
eu/external_relations/cfsp/sanctions/docs/measures_en.pdf
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011
Kosovo is not considered a regional financial or offshore center.
The country does, however, have an active black market for
smuggled consumer goods and pirated products. Kosovo’s
borders are porous and facilitate drug trafficking. According to the
Customs Service, significant amounts of cigarettes and fuel are
smuggled into the country. There is no indication that these
smuggled items are funded by narcotic or other illicit proceeds.
Illegal proceeds from domestic and foreign criminal activity are
generated from official corruption, tax evasion, customs fraud,
organized crime, contraband and other types of financial crimes.
Most of the proceeds from smuggling activity are believed to be
laundered directly into the economy in areas such as construction
and real estate, retail and commercial stores, banks, financial
services, casinos and trading companies. Smaller amounts are
thought to be laundered through the financial system.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: Not available
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks; money exchangers and remitters;
securities brokers and service providers, portfolio and fund
managers; insurance companies; issuers of traveler’s checks,
money orders, emoney, and payment cards; political parties;
casinos; attorneys, accountants, notaries, and auditors; real
estate agents; and high-value goods dealers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks; money exchangers and remitters;
securities brokers and service providers, portfolio and fund
managers; insurance companies; issuers of traveler’s checks,
money orders, emoney, and payment cards; non-governmental
organizations; political parties; casinos; attorneys, accountants,
notaries, and auditors; real estate agents; and high-value goods
dealers
Number of STRs received and time frame: 164 - 2010
Number of CTRs received and time frame: 420,000 - 2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
Kosovo is not a member of a Financial Action Task Force (FATF)-
style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Kosovo Police Economic Crimes and Corruption Directorate,
the Organized Crime Directorate, and the Special Prosecutors
Anti-Corruption Task Force (established in April 2010) are weak in
all aspects of economic crimes investigations. The Kosovo Police
(KP) needs to enhance its ability to investigate economic crimes
by developing: the necessary investigative skills; interagency
cooperation with other law enforcement and regulatory agencies;
a cadre of KP instructors who will be able to train investigators in
all aspects of economic crimes investigations; and,
institutionalized communication and cooperation between
economic crimes investigators and Kosovo’s prosecutors.
Prosecutors also require enhanced skills to prosecute economic
crimes.
In October 2010 the new Law on the Prevention of Money
Laundering and Terrorist Financing came into effect, replacing
UNMIK Regulation 2004/2. Among other provisions, this law
establishes a new FIU within the Ministry of Finance and Economy,
customer due diligence and record keeping requirements, and
cross-border monetary instrument transportation reporting
requirements; sets administrative sanctions for non-compliance;
identifies money laundering as an autonomous offense; prohibits
tipping off; and provides safe harbor protection for reporting
persons.
The Kosovo draft Law on Games of Chance remains at the
Ministry of Economy and Finance awaiting passage into law and
implementation of a regulatory framework. The recently
established Tax Administration of Kosovo Criminal Tax
Investigation Unit needs to improve its capacity to investigate
criminal tax cases.
The Government of Kosovo (GOK) should continue its efforts to
have the FIU become fully operational, compliant with international
standards, and accepted by the international community. The
GOK’s newly created Agency for Asset Forfeiture will manage and
dispose of seized and forfeited assets, at least a portion of which
will be provided to law enforcement agencies to provide the
resources necessary to combat money laundering, terrorist
financing, and other financial crimes. The Agency for Asset
Forfeiture will require substantial training to enhance its ability to
effectively manage and dispose of seized assets. In addition, the
GOK should enhance its pursuit of confiscation and forfeiture of
the proceeds of smuggling, human trafficking, corruption, and
other organized criminal activities, and should enact domestic
laws permitting international sharing of confiscated assets.
Kosovo is regarded as being part of the geographical region of
the Western Balkans and therefore falls under the US sanction
order as follows: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/balkans.aspx
The European Union adopted Council Regulation (EC) No
1295/98 on 22 June 1998. The Regulation provided, among other
matters, for a freeze on the funds of the Governments of the
Federal Republic of Yugoslavia (FRY) and the Republic of Serbia.
The restrictive measures were subsequently modified to include a
ban on investment in the FRY and the Republic of Serbia.
Council Regulation (EC) No 2488/2000 lifted the investment ban
and the financial sanctions in respect of the FRY and the Republic
of Serbia. However, specific sanctions still applied to former
President Slobodan Milosevic and those persons associated with
him.
Commission Regulation (EC) No 1205/2001 modified the financial
sanctions to cover only those funds belonging to Mr Slobodan
Milosevic, and certain members of his family and other close
associates. The Regulation had the effect of amending the list of
persons in Annex I of Council Regulation (EC) No 2488/2000 to
whom the financial sanctions apply.
For further information:
http://www.hm-treasury.gov.uk/fin_sanctions_yugoslavia.htm
http://ec.europa.
eu/external_relations/cfsp/sanctions/docs/measures_en.pdf
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011
Kosovo is not considered a regional financial or offshore center.
The country does, however, have an active black market for
smuggled consumer goods and pirated products. Kosovo’s
borders are porous and facilitate drug trafficking. According to the
Customs Service, significant amounts of cigarettes and fuel are
smuggled into the country. There is no indication that these
smuggled items are funded by narcotic or other illicit proceeds.
Illegal proceeds from domestic and foreign criminal activity are
generated from official corruption, tax evasion, customs fraud,
organized crime, contraband and other types of financial crimes.
Most of the proceeds from smuggling activity are believed to be
laundered directly into the economy in areas such as construction
and real estate, retail and commercial stores, banks, financial
services, casinos and trading companies. Smaller amounts are
thought to be laundered through the financial system.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: Not available
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks; money exchangers and remitters;
securities brokers and service providers, portfolio and fund
managers; insurance companies; issuers of traveler’s checks,
money orders, emoney, and payment cards; political parties;
casinos; attorneys, accountants, notaries, and auditors; real
estate agents; and high-value goods dealers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks; money exchangers and remitters;
securities brokers and service providers, portfolio and fund
managers; insurance companies; issuers of traveler’s checks,
money orders, emoney, and payment cards; non-governmental
organizations; political parties; casinos; attorneys, accountants,
notaries, and auditors; real estate agents; and high-value goods
dealers
Number of STRs received and time frame: 164 - 2010
Number of CTRs received and time frame: 420,000 - 2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
Kosovo is not a member of a Financial Action Task Force (FATF)-
style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Kosovo Police Economic Crimes and Corruption Directorate,
the Organized Crime Directorate, and the Special Prosecutors
Anti-Corruption Task Force (established in April 2010) are weak in
all aspects of economic crimes investigations. The Kosovo Police
(KP) needs to enhance its ability to investigate economic crimes
by developing: the necessary investigative skills; interagency
cooperation with other law enforcement and regulatory agencies;
a cadre of KP instructors who will be able to train investigators in
all aspects of economic crimes investigations; and,
institutionalized communication and cooperation between
economic crimes investigators and Kosovo’s prosecutors.
Prosecutors also require enhanced skills to prosecute economic
crimes.
In October 2010 the new Law on the Prevention of Money
Laundering and Terrorist Financing came into effect, replacing
UNMIK Regulation 2004/2. Among other provisions, this law
establishes a new FIU within the Ministry of Finance and Economy,
customer due diligence and record keeping requirements, and
cross-border monetary instrument transportation reporting
requirements; sets administrative sanctions for non-compliance;
identifies money laundering as an autonomous offense; prohibits
tipping off; and provides safe harbor protection for reporting
persons.
The Kosovo draft Law on Games of Chance remains at the
Ministry of Economy and Finance awaiting passage into law and
implementation of a regulatory framework. The recently
established Tax Administration of Kosovo Criminal Tax
Investigation Unit needs to improve its capacity to investigate
criminal tax cases.
The Government of Kosovo (GOK) should continue its efforts to
have the FIU become fully operational, compliant with international
standards, and accepted by the international community. The
GOK’s newly created Agency for Asset Forfeiture will manage and
dispose of seized and forfeited assets, at least a portion of which
will be provided to law enforcement agencies to provide the
resources necessary to combat money laundering, terrorist
financing, and other financial crimes. The Agency for Asset
Forfeiture will require substantial training to enhance its ability to
effectively manage and dispose of seized assets. In addition, the
GOK should enhance its pursuit of confiscation and forfeiture of
the proceeds of smuggling, human trafficking, corruption, and
other organized criminal activities, and should enact domestic
laws permitting international sharing of confiscated assets.
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| Last Updated: 16 April 2012 |