White-Collar Crime 2024 Comparisons

Criminal Offences

A criminal offence is constituted by the presence of the following general elements:

• a specific action that is prescribed as a criminal offence by the law; and
• said action is committed with criminal intent (or, where specifically prescribed, out of negligence).

Substantive elements are prescribed either by a particular law or by the Criminal Code.

Criminal intent (culpability)

Criminal intent exists if the offender was mentally competent, acted with premeditation and was aware (or should or could have been aware) that their action was prohibited.

The offender may also be guilty when acting with negligence, which is defined as follows:

• the offender is/was aware at the time of committing the offence that an offence could be committed by their action, but assumed that it would not occur or that he/she would be able to prevent it; or
• the offender was unaware that an offence could be committed by their action, but was obliged to be aware and could have been aware of such possibility.

Action and omission

A criminal offence is usually perpetrated by active behaviour. Omission is exceptional and exists only where specifically provided for.

Attempted criminal offences, inappropriate attempts and voluntary abandonment

An attempt is an incomplete criminal offence, where the offender fails to fully commit the criminal offence. If the offence is punishable by five or more years in prison, the attempt can be punished. For other offences, punishment for an attempt applies only if explicitly stated by law. Inappropriate attempts, using unsuitable means or targeting the wrong object, may result in a remitted sentence. An offender who voluntarily stops or prevents the offence’s consequences may also be exempt from punishment.

Commercial Offences

A commercial offence refers to a socially harmful violation of the regulations on economic or financial operations. A legal entity or entities (LE or LEs) may be liable for a commercial offence, as may the person responsible for economic or financial operations within that LE.

A person is generally liable for a commercial offence if it occurs due to their action or lack of supervision, whether intentional or negligent. In some cases, the law may require intent. Liability for an attempted commercial offence exists if the regulation defining the offence expressly stipulates that an attempt will be punished.

Misdemeanour

A misdemeanour is an illegal act for which a misdemeanour sanction is prescribed. It may be committed by action or by omission when the regulation so stipulates.

An attempt of misdemeanour is punishable only if explicitly prescribed as such.

A person (natural or natural person-entrepreneur), LE (including all companies, government bodies, governmental agencies and local authorities) or a person responsible for an LE may be liable for a misdemeanour if, at the time of committing the misdemeanour:

• they were mentally competent;
• they committed the misdemeanour either with intent or due to negligence; and
• they were aware (or had to be aware and may have been aware) that such actions were illegal.

Negligence is deemed sufficient for a misdemeanour liability to exist, except where intent is explicitly required by regulation.

Criminal Offences

The Criminal Procedure Law places the burden of proof on the prosecutor, who must defend their indictment. The defence is responsible for proving its own claims, although the Public Prosecutor may gather evidence in favour of the defence. If there is doubt about the facts essential to the case, the court will rule in favour of the defendant. The court evaluates the evidence according to its free will.

Which facts will be taken as proven is decided by conscientious and careful evaluation of each piece of evidence separately and all pieces of evidence together.

There is no legally established mechanism for the presumption of guilt, but there is an established presumption of innocence.

Commercial Offences

The rules for criminal offences also apply to commercial offences.

Misdemeanour Proceedings

The burden of proving the features of the misdemeanour and misdemeanour liability lies with the applicant for the initiation of misdemeanour proceedings (any state or administrative authority that has standing to initiate misdemeanour proceedings). The standard of proof is identical to that for criminal and commercial offences.

Criminal Offences

There are statutes of limitations for:

• criminal prosecution; and
• enforcement of criminal punishment.

Relative Statute of Limitations for Criminal Prosecution

Criminal prosecution cannot be undertaken when the following periods have elapsed:

• 20 years for offences punishable by over 15 years in prison;
• 15 years for offences punishable by over ten years in prison;
• ten years for offences punishable by over five years in prison;
• five years for offences punishable by over three years in prison;
• three years for offences punishable by over one year in prison; or
• two years for offences punishable by up to one year in prison or a fine.

The statute of limitations is paused during circumstances that prevent prosecution; time stops when the obstacle occurs and resumes once it ends, without counting the delay period.

Absolute Statute of Limitations for Criminal Prosecution

Since every suspension of the statute of limitations extends the time limit and every interruption restarts it, practically, the statute of limitations would never expire if there were no institute of absolute limitations. An absolute statute of limitations occurs in any case after the expiration of double the period of relative limitations, at which point the proceedings can no longer be initiated or continued, and interruptions and suspensions have no effect on this period.

Relative Statute of Limitations for the Execution of Criminal Sanctions

The imposed sentence cannot be executed when the following periods have elapsed:

• 20 years for a prison sentence over 15 years;
• 15 years for a prison sentence over ten years;
• ten years for a prison sentence over five years;
• five years for a prison sentence over three years;
• three years for a prison sentence over one year; or
• two years for a prison sentence of up to one year, a fine, community service or a driving licence revocation.

If the imposed sentence is reduced by an act of amnesty or pardon, or by a court decision on an extraordinary legal remedy, the time necessary for the statute of limitations to occur is determined according to the new sentence, but the duration of the statute of limitations is counted from the previously final judgment.

Absolute Statute of Limitations for the Execution of Criminal Sanctions

The statute of limitations for sentence execution applies after double the legally prescribed time has passed. When it occurs, any ongoing sentence execution is suspended.

The statute of limitations for criminal prosecution begins from the date the criminal offence took place or the date the consequence of the offence occurred, whichever is later. The statute of limitations for sentence execution starts when the judgment becomes final or, if a conditional sentence is revoked, from the date the revocation decision becomes final.

There is no separate statute of limitations for concealed criminal offences: the statute of limitations principle outlined above is applied.

As for continuing offences, the statute of limitations starts from the last committed offence and the statute of limitations principle outlined above is applied.

Commercial Offences

The (relative) statute of limitations for prosecuting commercial offences is three years from the offence date. However, it extends to five years for foreign trade, foreign exchange and customs-related offences. The Law on Commercial Offences aligns with the Criminal Code, establishing an absolute statute of limitations of six years for prosecution. The same principles for executing sentences and for concealed and continuing offences apply as in criminal cases.

Misdemeanours

The statute of limitations for misdemeanour prosecution begins from the date the misdemeanour was committed. The statute of limitations for the enforcement of misdemeanour punishment begins from the date the judgment becomes final and binding.

There are absolute and relative statutes of limitations for both the prosecution of misdemeanours and the enforcement of punishment for misdemeanours:

• the relative statute of limitations lasts for one year from the date the misdemeanour was committed; and
• the absolute statute of limitations is calculated in the same manner as per criminal offences.

For concealed and continuing offences, the same principles as for criminal offences apply.

For offences related to customs, foreign trade, finance, public procurement, trade, the environment, corruption prevention and air traffic, special laws may extend the statute of limitations, but not beyond five years. The absolute statute of limitations for these offences is double that period: ten years.

The legal framework that has extraterritorial reach includes the Criminal Code of Serbia, the Law on the Prevention of Money Laundering and Terrorist Financing, the Law on Corporate Criminal Liability and the Law on Protection of Competition.

Criminal Offences

Extraterritorial reach may be applied in the following circumstances:

• when a Serbian citizen commits a criminal offence abroad and is found or extradited to Serbia, with the offence being punishable in the country where it occurred;
• when a foreigner commits a criminal offence against Serbia or its citizens abroad and is found or extradited to Serbia, with the offence punishable under the local law; or
• when a foreigner commits a serious offence abroad (punishable by five or more years of imprisonment) and is found in Serbia but not extradited.

If the offence was recognised as a crime under international law when committed, Serbia can prosecute it (with approval from the Republic Public Prosecutor), regardless of the laws in the country where it occurred.

Domestic and foreign legal entities are liable for criminal offences committed on Serbian territory. Foreign LEs are liable for criminal offences committed abroad to the detriment of Serbia, its citizens or a Serbian LE.

Domestic LEs are liable for a criminal offence committed abroad.

Commercial Offences

A foreign LE and a person responsible for a foreign LE may be liable for a commercial offence only if the foreign LE has a representative office on Serbian territory or if the commercial offence was committed by means of transport.

Misdemeanours

Foreign natural and legal persons and foreign persons responsible for LEs are liable for misdemeanours, as are domestic natural, legal and responsible persons. However, a foreign LE and a responsible person may only be punished for a misdemeanour committed on Serbian territory if:

• it has a business unit or representative office in Serbia or a representative office; or
• the offence was committed by means of transport.

In exceptional circumstances, offenders may be punished for misdemeanours committed abroad if such punishment is explicitly provided for by regulations ‒ for example, in the case of certain customs offences.

International Legal Instruments

Serbia has signed 52 bilateral agreements with 31 countries for international legal assistance in criminal matters, and is a member of 24 Council of Europe conventions and more than 30 UN conventions. Key treaties include:

• the UN Convention Against Corruption (UNCAC);
• the European Convention on Mutual Assistance in Criminal Matters (ECMA); and
• the European Convention on Extradition.

Council of Europe and UN conventions also cover cross-border co-operation in criminal matters, including corruption.

The Republic Public Prosecutor's Office in Serbia collaborates with international prosecutorial bodies such as Eurojust, SEEPAG and the Consultative Council of European Prosecutors, and has strengthened ties with Eurojust. Serbia does not have blocking statutes or equivalent regulation.

Extradition

Serbia has signed bilateral agreements with 28 countries. Additional applicable legal instruments include the European Convention on Extradition of 1957 and additional protocols from 1975, 1978, 2001 and 2012.

The state requesting the extradition is not a party in the extradition proceedings and does not have any rights (such as the right to inspect the file or to file motions or remedies). There are no special rules that govern or distinguish the matter of extradition in the case of white-collar crimes, so general rules are applied.

Extradition will not be permitted if:

• the person cannot be prosecuted in criminal proceedings (the principle of specialty);
• the person is facing the death penalty; or
• the person was convicted in absentia.

Extradition may be postponed until:

• criminal proceedings being conducted before a domestic court for a different criminal offence have legally concluded; or
• the person whose extradition is sought has completed serving a prison sentence or other criminal sanction that involves deprivation of liberty.

Extradition of Serbian citizens

The extradition of Serbian citizens is permitted only in exceptional circumstances, as the Constitution does not address this issue.

The Law on International Legal Assistance in Criminal Matters states that it applies only when there is no existing agreement or when specific matters are not covered by an agreement. Serbia has extradition agreements with several countries, including Croatia, Montenegro, North Macedonia, Bosnia and Herzegovina, Italy and the USA. The Extradition Treaty between the United States and the Kingdom of Serbia, signed in 1901, remains in effect today. Under this treaty, both parties agree to extradite individuals being prosecuted or sentenced for extraditable criminal offences upon request.

An LE is liable for any criminal offences that are committed by the person in charge while they are working within the scope of its operations or authorisation, with the intention of gaining benefits for the LE. An LE is also liable if a person in charge fails to supervise or control individuals under their authority, allowing those individuals to commit a crime for the benefit of the LE. Individuals and companies may be held liable. The liability of an LE is based on the fault of the responsible person. An LE is liable for the criminal offence of the responsible person even if the criminal proceedings against the responsible person have been dismissed or the charges have been rejected. Both an LE and the responsible persons therein may be held liable for the same offence.

There is no policy preference regarding whether to pursue an LE or a natural person (or both), but prosecutors hesitate to prosecute LEs because of a general fear that this will have a negative impact on the economy.

If an LE is found guilty of a crime due to the actions or omissions of its responsible person (eg, failure to supervise), it must compensate third parties for damages. The LE can then sue the responsible person for recourse, unless it involves business policy, in which case it cannot sue for damages.

The law prescribes rules on criminal offences committed by an LE in respect of termination or a status change to the LE, or the opening of bankruptcy proceedings. If the LE ceases to exist before the criminal proceedings conclude or undergoes a status change, its successor may face sanctions. If the entity changes its status after committing a crime, it remains liable if the responsible person is found guilty.

The Ministry of Justice primarily shapes penalties and the penal policy, which is implemented by the executive branch, as prosecution is part of this branch. Policy enforcement occurs through prosecutions, with procedural stances adopted by higher courts and applied to lower courts. Legislators restrict judges' sentencing discretion by:

• prohibiting punishment mitigation for certain offences; and
• mandating harsher penalties for repeat offenders exceeding half the prescribed range.

Judges assess punishments within legal limits, considering the purpose of punishment (special or general prevention) and all relevant circumstances. Reductions or increases in punishment can only occur in exceptional cases defined by law.

There are certain rules regarding governing the assessment of penalties, as follows.

• In the event of a deferred prosecution agreement, the public prosecutor may postpone criminal prosecution for offences punishable by a fine or up to five years in prison. The prosecutor will assess the justification for this approach based on criteria such as the accused's prior convictions, the circumstances of the offence or the personal and family situation.
• A plea agreements can be concluded between the public prosecutor and the accused from the start of the investigation until the conclusion of the main hearing. This process benefits the accused, as admitting the offence is viewed as a mitigating factor, often resulting in a lighter sentence, more lenient execution or even the withdrawal of charges for some offences if the accused is facing multiple charges.

Victims’ Compensation in Criminal Offences

The elements of criminal liability are narrower than the elements of civil liability. Criminal liability is linked to a criminal, economic or misdemeanour verdict. In such cases, the victims submit a compensation claim before the court handling the white-collar offence case. This claim can be resolved by the judge presiding over the white-collar offence case, or it can be referred to civil proceedings for solving.

The legal grounds for damage compensation are:

• a final and binding guilty court verdict in a criminal/misdemeanour/commercial offence court;
• a plea agreement with the Public Prosecutor's Office and/or other authorities; and
• general civil clauses related to damage reparation and compensation in the relevant civil laws.

In regular civil court, the victims must prove the active standing (legitimacy) of the plaintiff, the passive standing of the defendant, a direct causal link between the defendant's action or inaction, and the damage suffered by the victim, as well as the amount of damage incurred. Basic or higher courts may be competent, depending on the financial census of the case in question. In existing case law, victims are usually directed to pursue their compensation claims via civil proceedings if there has been a conviction. If one LE files a compensation claim within a criminal application against another LE, the competent basic or higher court can decide about it, but the parties are mostly instructed to exercise their right in litigation, which in this situation would be a commercial court.

Victims’ Compensation in Commercial Offences

As the parties involved in these proceedings are LEs, commercial courts are usually the competent courts when it comes to damage compensation for white-collar crimes. In rarer cases, basic or higher courts may be competent, depending on the financial census of the case in question.

However, even in cases where there is no conviction (eg, a not-guilty verdict, acquittal or statute of limitations application) for a criminal/commercial/misdemeanour offence, it is still possible to claim for damages in a civil court because civil liability is generally much broader than criminal liability.

Victims’ Compensation in Misdemeanour

A compensation claim from a misdemeanour can be addressed during misdemeanour proceedings, at the request of the injured party or authorised person, unless it would cause significant delay. If the evidence is insufficient, the request is rejected; if the defendant is acquitted, the court will direct the injured party to pursue the claim in civil litigation.

Class Action Lawsuits

In Serbia, there are no class action lawsuits. However, there are circumstances in which compensation for damage can be claimed in much the same way as a class action lawsuit. For example, in some criminal cases the victims will be hundreds of thousands of minor shareholders. In such cases, the court will order one sum to be paid as compensation, and this sum will be distributed to all shareholders according to their participation in the shareholder structure.

Serbia recognises derivative claims, allowing a plaintiff to seek damages for third-party victims. If a person in charge requests a company to file a lawsuit and the request is denied or no action is taken within 30 days, it can file the lawsuit in its own name on behalf of the company. This applies to cases of breach of caution of care, approval of transactions with personal interest, avoiding conflicts of interest, maintaining business confidentiality, and prohibiting competition.

The main authorities responsible for prosecution and investigation are:

• Special Divisions in Higher Prosecutors' Offices for organised crime; and
• Special Divisions in Higher Prosecutors' Offices for combatting corruption.

The competent courts are:

• the Special Department for Organised Crime of the High Court in Belgrade;
• the Special Department for Organised Crime of the Court of Appeal in Belgrade; and
• Special Departments in Higher Courts for combatting corruption.

The authorities responsible for investigation (administrative authorities) are:

• the Agency for the Prevention of Corruption;
• the Tax Authority;
• the Administration for the Prevention of Money Laundering;
• the Customs Administration; and
• any other administrative body that can initiate an investigation into an economic offence or misdemeanour.

The main authorities responsible for law enforcement are:

• the Administration of Criminal Police's department for combatting corruption; and
• the Security Information Agency.

The difference in authority for handling white-collar crimes is based on monetary census. Organised crime authorities are responsible if the illegal gain exceeds RSD200 million, or if a public procurement exceeds RSD800,000; otherwise, corruption authorities handle the case. Basic prosecutors' offices, local police departments dedicated to commercial crime and basic courts are competent for tax evasion, damaging creditors and some other minor white-collar criminal offences.

The misdemeanour procedure is initiated by authorised authorities, defined by specific laws and regulations, including civil and administrative bodies like investigative, tax and customs authorities. The Special Department of the Higher Public Prosecutor's Office for combatting corruption is responsible for the fight against economic crime and the suppression of criminal offences related to official duty and corruption.

Jurisdiction conflicts can arise when an event involves elements of both criminal and misdemeanour offences, such as tax evasion, where the distinction is based on the amount of tax evaded. If someone is found guilty of a misdemeanour, they cannot be tried for a related criminal offence due to the ne bis in idem principle. Administration of Criminal Police's department for combatting corruption is a specialised police squad that is responsible for detection and suppression. There are no specialised judges in Serbia for white-collar offences but there are Special Departments in Higher Courts for Organised Crime.

Rules on initiating white-collar investigations are determined by the powers and legal standing of the competent authorities, whether administrative or criminal.

• Criminal offence proceedings may be initiated only by the competent prosecutor's office, following a criminal application by police, victims, administrative or enforcement authorities.
• Commercial offence proceedings may be initiated only by the competent prosecutor's office; however, the application may come from any civil or administrative enforcement authority.
• Misdemeanour proceedings may be initiated by any competent investigative authority (or other state, province or local authority with public authority or any civil or administrative authority).

Public prosecutors are obliged to perform their duties professionally, conscientiously, impartially, fairly and without undue delay, taking particular care to protect victims and prevent discrimination on any basis.

The Prosecutor’s Offices are authorised to:

• collect information about the suspect;
• interrogate the suspect;
• order forensic-genetic samples to identify the perpetrator or establish facts;
• request data from banks or financial institutions regarding the suspect's accounts and funds;
• collect evidence and authorise controlled deliveries of illegal or suspicious shipments under supervision;
• gather information from courts, public bodies and individuals required to submit documents to the public prosecutor.

The police have the general authority to:

• collect the necessary information from citizens;
• carry out the necessary inspections of means of transport, passengers and luggage;
• restrict movement in a certain area for the necessary time (and for a maximum of eight hours);
• take the necessary measures to establish the identity of persons and objects;
• issue a search warrant for the person and the objects sought; and
• investigate certain facilities and premises of state bodies, companies, shops and other LEs in the presence of the responsible person to gain insight into their documentation and, if necessary, to confiscate it.

Investigators within the various administrative authorities are authorised to:

• inspect and copy public documents and data from competent authorities' records;
• inspect personal or public documents with photographs for identification purposes;
• take written and oral statements from supervised subjects and invite them to give statements on issues of significance to the investigation;
• order that the business books, general and individual acts, records, contracts and other documentation of the supervised entity that are relevant to the investigation be made available within a certain period;
• inspect locations, buildings, vehicles and other premises related to the investigation;
• collect samples for examination to establish factual circumstances;
• take photos and record the area in which the investigation is carried out and anything else that is subject to investigation;
• secure evidence; and
• undertake other actions to determine the factual situation according to the general and specific laws.

Authorities will temporarily confiscate and secure objects required by law or objects that may serve as evidence in criminal proceedings. All individuals must surrender such items, except the defendant and those excluded from testifying.

If there are grounds to suspect an offence is prosecuted ex officio, the police must take measures to uncover and secure evidence, including investigating the premises of LEs in the presence of responsible personnel, inspecting documentation and confiscating it. In addition, the employees, officers or directors of a company may be summoned for questioning under the same conditions.

Internal investigations are not deemed mandatory and are not provided for by any regulation. However, the Data Protection Law and the Labour Law have provisions that regulate certain procedures that must be carried out before notifying the Commissioner for Data Protection of a breach of personal data.

The benefit of conducting an internal investigation and presenting the results (self-reporting) is that doing so makes it possible to enter into a non-prosecution agreement with the competent prosecuting authority. During the internal investigation, attention should be paid to personal data as per the Data Protection Law.

The investigator must ensure that interviews and statements are voluntary. If an employee agrees, their statement can be taken according to the Civil Code and notarised, serving as evidence in civil proceedings or indicating suspicion in criminal cases. Employees are not obliged to co-operate but, during the initial phase of an internal investigation, they may be informed of potential legal benefits to co-operating, regardless of the investigation's outcome. Employees may engage legal counsel at their own expense, but this is not mandatory.

Best practices for taking statements during an internal investigation include three steps:

• recording the employee's statement in audio or video format with their consent;
• transcribing the statement for the employee to review and amend; and
• notarising the final written statement in the employee's presence.

White-collar prosecutions begin with criminal applications from authorities, police, citizens or companies. For white-collar offences punishable by up to eight years' imprisonment, a proposal is filed with the public prosecutor; for those punishable by over eight years' imprisonment, an indictment is submitted. Enforcement bodies can file a criminal application but leave the charging decision to the prosecutor. Courts do not charge white-collar offences; they make decisions based on submitted evidence. Only prosecutors have a discrete right to determine a criminal or misdemeanour offence. In certain situations, as a means of securing an improved status, certain persons can enter into a special type of plea agreement with the Public Prosecutor’s Office that, for example, grants them the status of:

• witness (in return for freedom from prosecution for that specific criminal act); or
• whistle-blower (in some cases, the Public Prosecutor's Office may use its discretion to decide not to prosecute the whistle-blower).

This plea agreement is made by the Public Prosecutor's Office but needs to be approved by the court. The court can only refuse to approve the agreement in the following two situations:

• if the agreement is not fulfilled; or
• if the criminal prosecution of a witness is no longer possible due to a statute of limitations or for other formal reasons.

The guidelines in this respect concern what evidence the Public Prosecutor's Office will receive from the offender by concluding the plea agreement, which can be considered when deciding whether or not to drop the charges.

The public prosecutor may defer criminal prosecution for offences punishable by a fine or imprisonment of up to five years as alternative means. The prosecutor will drop the charges if the suspect agrees to fulfil one or more of the following obligations:

• to eliminate the harmful consequence caused by the commission of the criminal offence or to compensate for the damage caused;
• to pay a specified monetary amount to a public revenue account, which is used for humanitarian or other public purposes;
• to perform a certain community service;
• to fulfil overdue child support obligations;
• to undergo treatment for alcohol or drug addiction;
• to undergo psychosocial treatment to eliminate the causes of violent behaviour; or
• to fulfil an obligation established by a final court decision, or to comply with a restriction established by a final court decision.

In the order to defer criminal prosecution, the public prosecutor will specify a deadline within which the suspect must fulfil the obligations undertaken, with the provision that the deadline cannot exceed one year. If the suspect fulfils the obligation within the specified deadline, the public prosecutor will issue a decision to dismiss the criminal complaint and notify the injured party.

The prosecutor has the discretionary right to apply this alternative mechanism, as it is not obligatory and is only prescribed as a possibility.

The following criminal company law and corporate fraud offences are recognised in the Serbian Criminal Code.

Fraud in Conducting Business Activity

Basic constituent elements

This criminal offence consists of the following:

• intent to obtain unlawful material gain for one's self or another person;
• misleading by false representation or by concealing facts or maintaining the false conviction of another; or
• leading another to do something or not do something that results in damage to the assets of:
1. a business entity they work for or with; or
2. another LE.

Sanctions

The basic form of this offence is punishable by a fine and imprisonment for a term of between six months and five years. Qualified forms of this criminal offence depend on the amount of illegal gain/damage incurred.

Fraud in Insurance

Basic constituent elements

This criminal office consists of the following:

• destroying, damaging or hiding an insured object; or
• reporting damage with the intention of collecting an agreed sum from an insurance company.

Sanctions

The basic form of this offence is punishable by imprisonment for a term of between three months and three years. Qualified forms of this criminal offence depend on the amount of illegal gain/damage incurred. Attempt is also punishable.

Embezzlement in Conducting Business Activity

Basic constituent elements

This crime is committed when the offender:

• misappropriates money, securities or other assets entrusted to them while working in a business entity; or
• intends to obtain unlawful material gain for themselves or another person.

Sanctions

The basic form of this offence is punishable by imprisonment for a term of between three months and five years. Qualified forms of this criminal offence depend on the amount of illegal gain/damage incurred.

Abuse of the Position of a Responsible Person

Basic constituent elements

This criminal offence occurs when, by abusing their position or powers, the responsible person exceeds the limits of their powers or fails to perform their duties and, in doing so (and providing this does not constitute another criminal offence or parts thereof):

• obtains unlawful material gain for themselves or for another natural person or LE; or
• incurs material damage to another person.

Sanctions

The basic form of this offence is punishable by imprisonment for a term of between three months and three years. Qualified forms of this criminal offence depend on the amount of illegal gain/damage incurred.

Additional Criminal Offences

The following also constitute white-collar criminal offences in the Republic of Serbia:

• causing false bankruptcy;
• damaging creditors;
• abuse in privatisation;
• abuse in procedure in public procurement; and
• abuse of trust in conducting business activity.

The Serbian Criminal Code outlines the following main bribery and influence peddling offences.

Abuse of Office

Basic constituent elements

This offence can only be committed by an official who achieves the following by exercising their official position or authority, exceeding the limits of their official authority or failing to perform their official duty:

• obtains for themselves or another natural or legal person any benefit;
• harms another; or
• seriously violates the rights of another.

Sanctions

The basic form of this offence is punishable by imprisonment for a term of between six months and five years. Qualified forms of this criminal offence depend on the amount of illegal gain/damage incurred.

Trading in Influence

There are several different forms of this criminal offence, as follows.

Basic constituent elements

The request for or receipt of a gift (or any other benefit) for one's self or another ‒ directly or through a third party ‒ in exchange for the use of ab official or social position or actual or presumed influence to mediate in the performance or non-performance of an official action.

Sanctions

The basic form of this offence is punishable by imprisonment for a term of between six months and five years. There are additional forms of this criminal offence (with varying sanctions), which include variations on the basic constituent elements.

Soliciting and Accepting Bribes

There are also several forms of this criminal offence.

Basic constituent elements

This offence is committed when:

• an official directly or indirectly:
1. requests or receives a gift (or other benefit); or
2. receives a promise of a gift (or other benefit) for themselves or another; and
• such request or receipt is in exchange for:
1. performing, within the scope of their official authority or in connection with their official authority, an official action that the official should not perform; or
2. not performing an official action that they should perform.

Sanctions

The basic form of this offence is punishable by imprisonment for a term of between two and 12 years. There are additional forms of this criminal offence (with varying sanctions), which include variations on the basic constituent elements.

Bribery

There are also several forms of this criminal offence.

Basic constituent elements

This offence is committed by:

• offering or promising a gift (or other benefit) to an official (or another) person in exchange for such person using their official authority or acting in connection with their official authority to:
1. perform an official action that they should not perform, or not perform an official action that they should perform; and
2. perform an official action that they should perform, or not perform an official action that they should not perform; or
• mediating in such bribery of an official.

Sanctions

This offence is punishable by imprisonment for a term of between six months and five years.

Under the Criminal Law Convention on Corruption and the United Nations Convention against Corruption, the Serbian Criminal Code criminalises bribery involving foreign public officials. A bribe exists if given, promised or offered to a foreign public official, who can also be charged with accepting a bribe.

The law distinguishes between bribery in the private and public sectors by specifically addressing bribery in economic activities. While anyone can commit the offence of accepting a bribe in economic contexts, the gift or benefit must be requested or received during the performance of economic activities, implying the perpetrator has authority over contracts, business agreements or obligations.

Serbia does not provide a specific obligation to prevent bribery and influence peddling, except for the financial industry (investment funds, banks, insurance companies, brokerage firms), auditors, lawyers, accountants, tax advisers and luxury retailers. In these heavily regulated industries, there is an obligation to maintain a compliance programme, as stipulated by regulations including:

• the Law on Banks;
• the Law on Insurance;
• the Law on Digital Assets;
• the Law on Capital Markets;
• the Law on Auditing; and
• the Law on the Prevention of Money Laundering and Financing of Terrorism.

A compliance programme comprises a system of internal controls within which appropriate administrative and other procedures are agreed. Management is then obliged to organise and apply these policies and actions in a way that corresponds to the nature, complexity and risk of the work and the framework of internal control. A compliance programme also entails procedures for the purpose of:

• reporting on the compliance of the company's operations and the control of that compliance;
• determining and accepting appropriate risks and managing those risks; and
• preventing irregularities and illegalities in the company's operations.

The Anti-Corruption Commission is established under the Law on Prevention of Corruption and sector-specific regulations, and primarily monitors the property and conflicts of interest of public officials.

The Securities Commission operates under the Law on Capital Markets, the Law on Digital Assets and the Law on the Prevention of Money Laundering. It requires LEs to provide a compliance programme, with sanctions ranging from RSD10,000 to RSD3 million for non-compliance.

The Administration for the Prevention of Money Laundering collaborates with MONEYVAL, the Council of Europe's monitoring body, submitting reports on AML compliance and receiving recommendations for improvement.

Lawyers must inform the Administration for the Prevention of Money Laundering if they suspect a transaction involves money laundering or terrorist financing; failure to do so can result in fines ranging from RSD10,000 to RSD150,000.

Manufacturers and wholesalers of medicinal products and medical devices, as well as retailers of medical devices, must comply with the Law on Medicines and Medical Devices and Good Manufacturing Practice Guidelines. The Ministry of Health oversees compliance through inspectors for medicinal products and medical devices. If a manufacturer fails to align its operations with the law within the specified period, the Ministry will issue a decision to terminate the approval for producing medicines or medical devices. In addition, the ISO 37001 Anti-Bribery Management System has been translated and adopted in Serbia.

Although failing to maintain a compliance programme is not foreseen as a criminal offence by these laws, they do foresee misdemeanour offences and commercial offences, and various fines can be rendered by the National Bank of Serbia (NBS) in case of violation of such obligations.

The main offences and sanctions in relation to insider dealing, market abuse and criminal banking law are detailed in the following Serbian laws.

The Law on Capital Markets

The Law on Capital Markets prescribes the following criminal offences and sanctions.

• Market manipulationis punishable by a fine and imprisonment of six months to five years. If it causes significant market disruption, the sentence can range from three to eight years.
• The use, disclosure and recommendation of insider information are punishable by a fine or up to one year in prison. If illegally obtained gains or damages exceed RSD1.5 million, the penalty can be a fine and up to three years in prison. A qualified form involving abuse of office can lead to fines or imprisonment from six months to five years for damages exceeding RSD1.5 million.
• The unauthorised provision of investment services is punishable by a fine or up to one year in prison, with longer sentences and higher fines for larger gains. There are also commercial offences prescribed with significant monetary fines.

The Law on Digital Assets

The Law on Digital Assets prescribes sanctions of a fine or up to one year in prison for anyone who uses insider information as follows, with the intention of obtaining material gains or causing damage to other persons:

• to directly or indirectly acquire or alienate digital assets based on insider information for themselves or others; or
• discloses insider information to others, recommending or inducing others to acquire or alienate the digital assets in question.

The Law on Digital Assets also prescribes sanctions of a fine and between six months and five years in prison for anyone who engages in market manipulation for their own or another's benefit or who harms other persons by:

• concluding a transaction or issuing trading orders in which:
1. false information about the offer, demand or price of digital property is likely to be provided;
2. the person (or persons acting jointly) maintains the price of one or more digital assets at an unrealistic level; or
3. fictitious practices or any other form of deception or fraud is used; or
• spreading information via the media (including the internet) or otherwise transmitting untrue news (or news that may cause a misconception) about digital property, if they knew or should have known that this information was untrue or misleading.

The Law on Banks

The Law on Banks prescribes a prison sentence of between three months and five years for anyone who engages in the following criminal offences:

• accepting deposits without an operating licence issued by the NBS; or
• granting loans and issuing payment cards without an operating licence issued by the NBS and without being authorised to do so by law.

The sanctions may be stricter if the amount of material gain obtained by committing these offences exceeds certain amounts provided by the Law.

The Law on Foreign Currency Operations

The Law on Foreign Currency Operations prescribes the following actions as criminal offences, and includes accompanying sanctions:

• unauthorised currency transactions – buying or selling effective foreign currency from or to individuals without NBS authority is punishable by six months to five years in prison; and
• exceeding transaction limits – charging, paying or transferring more than EUR100,000 to a non-resident under a contract lacking an actual price or based on false documents carries a prison sentence of one to ten years.

The Law on Open Investment Funds with Public Offering

The Law on Open Investment Funds with Public Offering prescribes the following actions as criminal offences, and includes accompanying sanctions:

• misleading investors – publishing false or incomplete information about a UCITS fund's financial position or relevant facts to mislead investors can result in a fine or up to one year in prison, with penalties increasing based on unlawful gain or damage; and
• unauthorised management activities – performing management company or depository activities without authorisation for personal gain can lead to a fine or up to one year in prison, with penalties increasing based on unlawful gain or damage.

The Criminal Code prescribes two types of tax fraud, which are essentially differentiated by the type of public income that is defrauded.

Tax Evasion

The first offence occurs where the offender intends to fully or partially avoid paying more than RSD1 million in taxes by:

• giving false information about the acquired income or other facts that have an influence on the determination of such obligations;
• failing to report the acquired income where mandatory reporting is required; or
• concealing data related to the determination of the obligations.

Criminal intent must be proven.

Sanctions for tax evasion include fines and prison sentences ranging from one to five years, with longer terms for qualified forms based on the evaded amount.

Relevant tax laws also provide penalties for misdemeanours or commercial offences for amounts evaded below RSD1 million.

Evasion of Withholding Tax

The second criminal offence is non-payment of withholding tax, a specific type of tax evasion involving unpaid taxes and mandatory social security contributions. The offence is established by failing to pay with the intent to evade payment. Intent is proven by the sole act of failure to pay.

Sanctions include fines and prison sentences of one to five years, with longer sentences for qualified forms based on the amount evaded.

The LTPTA and Obligations to Prevent Tax Evasion

The Law on Tax Procedure and Tax Administration (LTPTA) provides for the following criminal offences.

• Tax fraud related to VAT, prescribing a fine and a prison sentence of between one and five years for:
1. intentionally requesting an unfounded VAT refund or tax credit for VAT;
2. completely or partially avoiding payment of VAT by:
1. failing to submit one or more tax returns for VAT; or
2. submitting one or more tax returns for VAT with false content; or
3. avoiding payment of VAT in another way, where the amount of tax exceeds RSD1 million.
• Endangering the collection of taxes and tax control, prescribing sanctions of a fine and up to one year in prison for intentionally jeopardising the collection of taxes that are not yet due or determined but are in the process of being determined or controlled.
• The illicit trade in excise products and the illicit storage of goods, introducing the illegal production, refinement, holding or intermediating in the sale and purchase of goods subject to excise as a criminal offence and prescribing sanctions of up to five years in prison.

The LTPTA, along with other relevant regulations that prescribe liability for the payment of specific types of taxes and other duties, provides obligations for LEs and entrepreneurs' regarding such payment in detail. Failure to comply with such obligations is sanctioned as a misdemeanour.

The LTPTA and related regulations outline obligations for companies to calculate and pay taxes and submit tax applications, with non-compliance resulting in misdemeanour or commercial offences.

A director who fails to act within their authority, as defined by company acts or decisions, may face fines or up to one year in prison. If the company incurs damages exceeding RSD10 million, the director can face six months to five years in prison and a fine.

Under the Law on Accounting, LEs and entrepreneurs must maintain proper accounting documents, business books and financial reports, designating responsible individuals and storage methods. Financial and audit reports must be retained for 20 years, while investment companies must keep relevant records for five years as per the Law on Capital Markets. Non-compliance can result in commercial offences or misdemeanours.

The Law on Archival Material allows for criminal complaints or misdemeanour proceedings if archival or documentary materials are damaged or destroyed before their retention period expires. Damaging financial records may also be considered concealment of a criminal offence, requiring proof of intent. Penalties for failure to keep or disclose accurate financial records range from RSD50,000 to RSD2 million for LEs and from RSD5,000 to RSD150,000 for responsible persons in an LE.

Commercial offences with regard to keeping accurate financial records are prescribed by the Law on Accounting, with monetary penalties that range from RSD100,000 to RSD3 million for LEs and from RSD20,000 to RSD150,000 for responsible persons in an LE.

The primary criminal offence in competition law is the signing of a non-exempt restrictive agreement, which leads to criminal liability. Companies abusing a dominant position or engaging in restrictive agreements may face fines of up to 10% of their annual revenue in Serbia. Companies reporting violations may be exempt from penalties.

Compensation for damages resulting from competition law violations, as determined by a decision of the Commission for the Protection of Competition, can be pursued in civil court. Damages must be proven, as they are not presumed.

The Criminal Code prohibits the signing of restrictive or cartel agreements aimed at fixing prices, limiting production or sales, or dividing markets. Without an exemption, individuals involved in such agreements face fines and imprisonment of six months to five years. The law does not explicitly mention cartel agreements.

The Criminal Code imposes penalties of a fine and six months to five years in prison for the production and circulation of harmful products. Various administrative misdemeanours also exist to protect consumer rights, such as failing to issue invoices, misleading consumers and engaging in unfair business practices.

Companies and their responsible persons can face fines ranging from RSD50,000 to RSD2 million for these violations, along with potential protective measures against both.               

The Criminal Code recognises the following criminal offences in relation to cybercrime, computer frauds and breach of company secrets.

Damaging Data and Computer Programs

Basic constituent elements

Deleting, altering, damaging or concealing data without authorisation or otherwise making computer programs unusable.

Sanctions

The basic form of this offence is punishable by up to one year in prison. Stricter sanctions are prescribed for several qualified forms of this offence, depending on the amount of damage incurred by the illegal activity.

Creating and Introducing Computer Viruses

Basic constituent elements

Creating a computer virus with the intent to introduce it into another’s computer or computer network.

Sanctions

This criminal offence is punishable by a fine or imprisonment for up to six months. If damage is incurred as a result, the prescribed sanctions are a fine or imprisonment for up to two years.

Computer Fraud

Basic constituent elements

This offence is committed when someone intentionally enters incorrect data, fails to enter correct data or otherwise conceals or falsely represents data in order to affect the results of electronic processing and the transfer of data, leading to:

• unlawful material gain for themselves or another; or
• material damage to another person.

Sanctions

Prescribed sanctions are a fine or a prison sentence of up to three years. Qualified forms of this offence with stricter sanctions exist, depending on the amount of damage.

Unauthorised Access to Computers, Computer Networks or Electronic Data Processing

Basic constituent elements

Accessing a computer or computer network without authorisation by circumventing protection measures, or accessing electronic data processing without authorisation by circumventing protection measures.

Sanctions

Prescribed sanctions are a fine or imprisonment for up to six months. If certain special criteria are fulfilled, the sanction may be more strict.

Additional Cyber-Offences

The following cyber-offences are also included in the Criminal Code:

• computer sabotage;
• preventing or restricting access to a public computer;
• unauthorised use of computers or a computer network; and
• creating, obtaining and providing another person with the means to commit criminal offences against the security of computer data.

Disclosing a Business Secret

The Criminal Code classifies disclosing a business secret as a criminal offence, punishable by six months to five years in prison. If the disclosure is for gain or involves highly confidential information, penalties range from a fine to two to ten years in prison.

A “business secret” is defined as information protected by law or authority that, if disclosed, could harm the business. In addition, Article 21 of the Law on Protection of Trade Secrets criminalises the unlawful obtaining, using or disclosing of a business secret, with fines ranging from RSD100,000 to RSD3 million.

Financial, trade and customs offences are prescribed by various laws, including the Criminal Code, the Law on Foreign Exchange Operations, the Customs Law and the Law on the National Bank of Serbia.

The following main financial crimes are foreseen by the Criminal Code:

• counterfeiting money;
• counterfeiting securities;
• money laundering; and
• financing terrorism.

The only customs criminal offence that is prescribed by the Criminal Code is smuggling. This is also a matter of misdemeanour regulation.

The main trade criminal offences prescribed by the Criminal Code are illegal trade and illegal production.

There are also numerous commercial offences and misdemeanour offences prescribed in relation to finance, trade and customs.

Based on the Criminal Code, concealment is punishable by a fine or imprisonment of up to three years. The penalty may not exceed the statutory penalty for the offence by whose commission the object was acquired.

It may also be treated as aiding and abetting a crime.

As for concealment as a white-collar crime, two criminal offences relate to this issue.

• preventing control, which is punishable by up to one year in prison; and
• preventing and obstructing evidence, which applies to any obstruction of evidence in proceedings before the court or competent state body.

Concealment predicate offences can vary – for example, giving a false statement to the competent authority in order to conceal the exact order of a company's finances may be a predicate offence under fraud in conducting business activity. It can also be a predicate offence in tax evasion, as it often involves providing false information about legal income or expenditures to facilitate tax evasion.

To confirm the existence of a predicate offence, there must be an underlying crime (eg, fraud, drug trafficking, embezzlement or corruption) from which the concealed information or assets originate. The individual must have known about the predicate offence and intended to conceal it, indicating awareness of its illegality and consciously hiding. There must be clear actions taken to conceal the crime or its proceeds, such as hiding assets, falsifying documents or providing misleading information to authorities.

A person can be held liable for both the predicate offence and concealment. The Serbian Criminal Code allows for charges related to the underlying crime (eg, fraud or embezzlement) and for the concealment or money laundering if the individual takes steps to hide their actions or the proceeds.

Sanctions for concealment and predicate offences vary based on the nature and severity of the crimes, and include imprisonment, fines, probation or restitution.

The general rules of criminal law apply to aiding and abetting in corporate offences. Anyone who falls under these rules can be punished for aiding in corporate crimes. An abettor faces the same punishment as the related offence, but with potential penalty mitigation. A conspirator or abettor is judged based on their own intent, which may differ from that of the principal offender. In addition, a conspirator or abettor who intentionally prevents the crime may be exempt from punishment.

Predicate offences and events include all types of corporate fraud offences, including:

• criminal company law and corporate fraud offences (see 3.1 Criminal Company Law and Corporate Fraud);
• bribery (see 3.2 Bribery, Influence Peddling and Related Offences);
• insider trading (see 3.4 Insider Dealing, Market Abuse and Criminal Banking Law); and
• tax fraud (see 3.5 Tax Fraud).

Money laundering is defined as:

• converting, transferring, obtaining, keeping or using property while aware that such property originated from a criminal offence, with intent to conceal or misrepresent the unlawful origin of the property; or
• concealing and misrepresenting facts on a property while aware that such property originates from a criminal offence.

The above-mentioned elements must be proven. The Law on the Prevention of Money Laundering and the Financing of Terrorism mandates banks, currency exchange offices and money transaction service providers to perform necessary checks (eg, KYC and transaction verification) when opening accounts and transferring funds. The NBS has issued by-laws detailing compliance procedures.

The NBS, the Basic Prosecutor's Office (for commercial offences) and the Administration for the Prevention of Money Laundering are the main prosecuting authorities for these violations. The special Criminal Police Administration is responsible for the suppression of these offences.

Both natural and legal persons can be held liable for concealing or failing to report violations under the Criminal Law and the aforementioned law.

Sanctions

• Criminal offence: fines and imprisonment of between six months and five years. Qualified forms of this offence depend on the amount of laundered funds and other circumstances, with penalties ranging from one to 12 years' imprisonment.
• Commercial offence: fines ranging from RSD100,000 to RSD3 million for LEs, and penalties for responsible persons ranging from RSD10,000 to RSD200,000.
• Misdemeanour offence: fines ranging from RSD10,000 to RSD500,000, and penalties for responsible persons ranging from RSD5,000 to RSD50,000.

The defence depends on the type and circumstances of the white-collar offence in question and on the specific case.

In tax evasion cases, the defence typically aims to demonstrate a lack of criminal intent, arguing that omissions resulted from differing interpretations of regulations. Paying the owed taxes, even during ongoing proceedings, can help establish the absence of intent, potentially leading the prosecutor to drop the charges. The defence often presents evidence of effective internal procedures and compliance programmes. If proven, this can lead to a not-guilty verdict for company directors or serve as a mitigating factor, particularly in regulated sectors like banking, insurance and pharmaceuticals, although this is not guaranteed.

There are a few significant exceptions for white-collar offences in Serbia.

Tax evasion does not constitute a criminal offence, for example, if the amount of evaded tax is less than RSD1 million ‒ such cases are considered merely misdemeanour offences.

In accordance with the Law on Health Care, it is possible to give a non-monetary gift of thanks to medical staff if the individual value does not exceed 5%, and the total value does not exceed the amount of one average monthly salary without taxes and contributions in the Republic of Serbia; this is not considered corruption, a conflict of interest or a private interest.

In criminal offences, the defendant may voluntarily admit to the charges, in which case the prosecutor and the defendant may reach a plea agreement. This is possible from the beginning of the investigation until the end of the trial. The defendant will voluntarily acknowledge charges in exchange for:

• a conviction on reduced charges; or
• an agreed-upon sentence.

Plea agreements for misdemeanours, including tax-related offences, must be approved by the court, which ensures legal compliance. There are no such agreements for commercial offences.

In tax-related misdemeanours, plea agreements require acknowledging the offence, correcting the violation and paying the owed tax. The type and amount of the misdemeanour sanction are determined in the plea agreement and are based on:

• the severity of the violation of regulations; and
• the previous actions of the defendant.

Two sub-criteria, depending on the nature of the offence, are:

• the type of irregularity (eg, errors in data entry or failure to submit a tax return); and
• the amount of unpaid, uncalculated or unreported tax.

Self-disclosure, co-operation with authorities and reparation of damages are mitigating factors, although leniency measures vary by case. The behaviour of the offender post festum and the significance of the protected object in the criminal offence in question may be highlighted. The court considers factors like guilt, motives, the severity of the harm, and the offender's background and behaviour post-offence when determining sentences. For monetary fines, the offender's financial situation is also taken into account.

In misdemeanours, lighter punishment or exemptions may apply if the offence occurred under extenuating circumstances or exceeded necessary defence.

A special law provides limited protection for whistle-blowers, mainly focused on employment (eg, protection from termination or salary reduction), but it does not protect them from criminal charges if they were involved in the criminal offence. Protection applies if they disclose information properly, within deadlines, and if the information is deemed truthful.

Participation in the crime may be considered a mitigating factor in a criminal case. Employees who report workplace corruption cannot be harassed for doing so. If harassment occurs, they can seek a court-ordered interim measure within eight days, followed by a fast-tracked case in a higher court. The burden of proof is reversed: the accused must prove there was no corruption or harassment.

Internal whistle-blowing involves reporting corruption to the employer, who must act on the information, stop any harmful actions and protect the whistle-blower. Employers with more than ten employees are required to adopt a Rulebook outlining procedures for internal whistle-blowing, protection and remedies.