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Observatory of Illicit Economies in South Eastern Europe
Summary highlights
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Balkan criminal networks are gaining ground in Australia’s drug market.
Two major consignments of cocaine seized offshore Australia in the last two to three years involving ships captained by Montenegrin sailors signal increased law enforcement scrutiny of Western Balkan criminal organizations’ involvement in supplying cocaine to the country. Offshore drop zones and drop-at-sea techniques are used to evade maritime security, while decoded messages indicate coordination and planning through communication applications. Subsequent cases suggest that these hauls are the tip of an expanding iceberg of Western Balkan criminal influence in Australia, driven in part by inter-group cooperation.
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Balkan countries lack the tools and drive to combat crypto fraud.
Criminal networks in the Western Balkans are increasingly exploiting the anonymity of cryptocurrencies to conceal the origins of illicit funds, supplementing or even supplanting traditional laundering methods. Regional law enforcement agencies are finally starting to wake up to this threat, but are finding it difficult to keep up with the fast-changing nature of crypto-related crimes, which pose unique challenges: legal gaps, lack of institutional expertise and limited operational resources. The development of a crypto regulatory architecture across the region and cooperation between financial intelligence agencies, law enforcement and the private sector are urgently required.
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Balkan countries are key destinations for the trafficking of Latin American women for sexual exploitation.
The recent dismantling of a network that allegedly trafficked numerous women from Colombia to Albania for sexual exploitation has highlighted a significant yet largely overlooked trend. A Global Initiative Against Transnational Organized Crime (GI‑TOC) investigation into online listings for sexual services has revealed a significant presence of Colombian sex workers in Albania and Kosovo, as well as Brazilian nationals in Bosnia and Herzegovina and North Macedonia. While many of these women are listed as ‘independent’ on these websites, they are in fact controlled by criminal networks that operate unhindered.
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Bosnia and Herzegovina faces cannabis cultivation challenges.
Bosnia and Herzegovina is undergoing a significant shift from being primarily a transit country for illicit cannabis to becoming a producer, with both outdoor and indoor cultivation expanding across the country. Seizures by law enforcement — ranging from the discovery of cannabis plantations to multiple indoor laboratories across the country over the past five years — point to an increasingly organized and diversified illicit cannabis market. As domestic consumption grows and criminal networks adapt, the country’s policy responses (notably including the new Canton Sarajevo strategy, which has been developed with civil society input) aim to reverse these trends through prevention, enforcement and cross-sector collaboration.
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Western Balkan criminals are fuelling London’s illicit tobacco trade.
The involvement of criminal networks from the Western Balkans in various illicit economies in the UK is well documented. Criminal proceeds, typically in cash, are moved out of the UK and into the wider region, while illicit goods flow in the opposite direction. Recent cases have revealed a significant pattern of cigarette smuggling from the Western Balkans to the UK. Airports in Pristina and Skopje have become key transit points for passengers smuggling large quantities of this form of contraband, facilitated by lax customs inspections at London Luton Airport. Additionally, large quantities of cigarettes produced in Albania are being smuggled across EU land borders and on to the UK by sea.
About this issue
This issue focuses on a wide range of illicit economies, both within the Western Balkans and influenced by criminal groups from the region.
We begin by looking at another example of how the tentacles of Western Balkan criminal groups spread around the world, this time to Australia. The story highlights how, over the past few years, organized crime groups from the Western Balkans have become active players in Australia’s lucrative cocaine market.
In the past, we have reported on the increasing impact of cryptocurrencies in the Western Balkans, not least for money laundering. In this issue, we look at the region’s vulnerability to crypto fraud and the challenges of dealing with this growing threat.
Over the past few months, there has been growing awareness of an increase in the number of foreign sex workers present in South Eastern Europe. In this issue, we explore this phenomenon, highlighting the well-organized movement of women, particularly from Latin America, into exploitative situations in the region. We underline the urgent need for action to address the expansion of cyber-enabled human trafficking and sexual exploitation in the Balkans.
In previous issues of this Risk Bulletin, we have looked at cannabis cultivation in Albania and North Macedonia. In this issue, we consider the challenges relating to the substantial increase in indoor and outdoor cannabis cultivation in Bosnia and Herzegovina, particularly those related to law enforcement and public health.
Our fifth story examines tobacco smuggling from the Western Balkans to the UK, particularly from airports in Pristina and Skopje to London Luton Airport. Undeclared cash is meanwhile moving in the other direction, from London to airports in the Western Balkans. This two-way smuggling system enables criminal networks to maximize their profits in both directions.
If you would like to get in touch or if you have an idea for a story, please contact Almedina.Dodic@globalinitiative.net.