Latest from the Observatory of Illicit Economies in South-Eastern Europe

Civil society’s role in uncovering illicit financial flows

A new GI-TOC report on IFFs in Bosnia and Herzegovina, Montenegro and Serbia highlights the need to increase information on the impact and harm of IFFs, as well as bolster civil society’s capacity to investigate and raise awareness of these types of crimes. The report uncovers how IFFs are being siphoned out of the three economies due to corruption, tax evasion and organized crime.

The financial system is the key channel through which illicit proceeds are moved. All three countries have significant domestic and international banking sectors, and all have problems with money laundering. From 2 to 5% of GDP is estimated to have been laundered in 2020 alone. Much of this money goes into real estate, tourism and cash-based businesses.

All three countries have given important attention to IFFs through enhanced anti-corruption efforts, financial governance and public sector transparency. And yet, it appears that their damaging impact is poorly understood by civil society and government actors alike. There is a need for civil society to increase the quantity and quality of data available on all components and channels of IFFs, as well as to enter into dialogue with state officials, the private sector and the general public on the topic.

Civil society in the Western Balkans may not – yet – have core expertise on IFFs, but it is an important stakeholder group that should be engaged by providing evidence for new policies, and oversight and monitoring of government progress, as well as raising public awareness.

This report follows the publication of a similar assessment in 2020 analyzing key drivers and current trends of IFFs in Albania, Kosovo and North Macedonia.¹

New online tool tracks migrant smuggling in the Western Balkans

In 2015, an estimated 1.5 million asylum seekers and migrants – triggered in part by the wars in Syria and Iraq – made their way through Turkey and Greece to the Western Balkans, and from there to western Europe. To this day, the Western Balkans remains a hub for migrants trying to reach western Europe.

In 2021, the GI-TOC analyzed the market for migrant smuggling in a report entitled ‘Spot prices: Analyzing flows of people, drugs and money in the Western Balkans’.² As a follow-up, taking into account the dynamic nature of criminal markets, the GI-TOC has developed an interactive online tool that provides an overview of the migrant-smuggling landscape in the region.

This tool provides data on irregular border crossings on the Balkan route; the numbers and nationalities of migrants and asylum seekers; estimated profits of the migrant-smuggling market; and an interactive map displaying smuggling routes and the prices paid for each route.

With a user-friendly layout and periodic updates, the tool is accessible to the wider public, including civil society organizations, media outlets, analysts, students and law enforcement authorities. Users can share the whole tool and/or specific sections and graphs with their networks through social media.

This is the first in a series of interactive analytical tools created by the Observatory, which are designed to not only provide an alternative way to publish research findings but also to trigger analysis-supported dialogue, policies and awareness among stakeholders.

To explore the tool, visit https://globalinitiative.net/analysis/migrant-smuggling-western-balkans.

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