The Council of Europe disposes of a comprehensive system of measures against corruption, organised crime and money laundering which includes the setting of European standards (conventions and recommendations based on the expertise of its member States), monitoring mechanisms (PC-R-EV for money laundering measures and GRECO for corruption) and technical cooperation programmes (Octopus). With a view to the Stability Pact for South-eastern Europe, the Council of Europe has begun to develop a 'Programme against corruption and organised crime in South-eastern Europe' (PACO). The results of this workshop were also to provide inputs into the planning of PACO.

The purpose of the workshop thus was the following:

The workshop was held in Banja Luka from 16 to 17 December 1999. Following opening statements by Ms. Heike Alefsen (representative of the Council of Europe in BiH), Ms. Kristina Hemon (on behalf of the Anti-Fraud Unit/Office of the High Representative), Mr. Suljo Babic (Prosecutor of the Federation) and Mr. Vojislav Dimitrijevic (Prosecutor of the Republica Srpska), Mr. Alexander Seger (Council of Europe) explained the purpose and methodology of the workshop.

A matrix to guide and provoke discussions and to visualise their outcome was put on the walls of the meeting room. It covered the following steps and gradually moved from presentations to interactive discussions and group work:

The methodology worked very well. Representatives of the Federation, the Republika Srpska and the international community participated in a very active, constructive and open manner throughout the workshop.

Unfortunately, heavy snow and reports on difficulties along the road forced participants from Sarajevo to leave early on Friday afternoon. The second day of the workshop thus had to be cut short.

More than 40 participants represented different institutions of the Federation and the Republica Srpska as well as the international community. The Council of Europe made three experts available, namely Ms. Vida Seme Hocevar (Slovenia), Mr. Vid Jakulin (Slovenia) and Mr. Henrik Stiernblad (Sweden). The workshop was moderated by Mr. Alexander Seger (Council of Europe, Strasbourg).

The discussion on this item showed that corruption, organised crime and money laundering are key factors contributing to bad governance in Bosnia and Herzegovina:

Corruption, organised crime and money laundering appear to be systemic. They contribute to bad governance and they are further reinforced by bad governance.

One agenda item was devoted to European and international standards which constitute the framework of reference for policies, strategies and measures against corruption, organised crime and money laundering.

The 'acquis' of the European Union, that is, the policies, strategies, legislation, standards and practices in this field are not only of relevance for those countries which are already members of the European Union or are candidate countries but for countries like BiH as well, in particular in view of the stabilisation and association process.

Relevant international instruments also include those of the OECD, the Financial Action Task Force (FATF) and the United Nations.

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Participants declared the people of BiH as the key stakeholders. While a few individuals and groups benefit from corruption, organised crime and money laundering, the broad majority of population loses out through the loss of revenue and the corresponding lack of resources for investments in social and economic development, through violence and the criminalisation of the economy. The public as the main stakeholders has no information as to the revenues collected and the way they are spent. Political parties and public institutions thus have little legitimacy.

All public institutions and well as the private sector are affected by systemic corruption, organised crime and money laundering and related phenomena. During the workshop, representatives of courts, prosecutors, police, tax autorities, customs and financial police expressed the need to take action and to ensure close cooperation between these institutions.

The Council of Europe's involvement is motivated by the fact that corruption, organised crime and money laundering are threats to democracy, human rights and the rule of law, that is, to the very objectives of the Council of Europe. BiH has applied for membership in the Council of Europe.

The brain-storming on current or planned measures against corruption, organised crime and money laundering showed the need to establish a complete inventory of such measures. It was agreed that such a task could best be carried out by OHR.

The following activities were mentioned during the workshop:

A 'Comprehensive Anti-corruption Strategy for Bosnia and Herzegovina', drafted by OHR, was endorsed in March 1999. Implementation is ensured by the Anti-corruption and Transparency Group which had its first meeting in October 1999. The ACT Group comprises all relevant international institutions.

In July 1999, the laws of the Supreme Court of the Federation and the Federation Prosecutor's Office were amended to give them jurisdication to investigate and prosecute organised crime, among other things.

The reform of the criminal codes and the criminal procedure codes for both entities are underway (OHR and Council of Europe). Phase I was recently completed in the Federation.

A number of other laws are being prepared by OHR, including money laundering legislation, state border service, anti-racketeering statute, forfeiture act.

Customs fraud and tax evasion are addressed under the Customs and Financial Assistance Office (CAFAO) of the European Commission. This includes an investigative unit in which customs officer and financial police participate.

The OSCE is supporting good governance programmes at local level. In cooperation with the Swedish Government, a training programme for prosecutors is implemented.

The International Police Task Force (IPTF) through its Organised Crime Unit and Drugs Unit and through the Joint Task Force Financial Investigation Team is tackling organised crime, corruption, and economic and financial crime.

The United Nations Judicial Assistance Programme (UNJSAP) reviews and monitors the implementation of laws and provides advice to judiciary.

Transparency International reportedly plans to establish a national chapter in February 2000.

A World Bank diagnostics survey on corruption is planned for early 2000. Participants agreed that such a survey should be carried out as a matter of urgency.

During the discussion of problems related to the implementation of measures against corruption, organised crime and money laundering reference was frequently made to the general framework conditions (postwar situation, transition from a socialist to a market economy, general lack of resources, lack of political will etc.). Some suggested that for that reason phenomena such a women selling smuggled cigarettes would need to be tolerated. Foreign experts would not always understand the situation. Participants agreed however, that the "black market is not a way to solve social problems" and that the vicious circle must be broken somewhere.

Specific problems discussed could be grouped into four categories:

Legislation: The process of adopting the necessary laws is often lengthy and obstructed for political reasons. These problems were related to a lack of political will. Participants agreed that many laws are in place and that the main problem was the actual application and enforcement of legislation. Some participants questioned the ownership and feasibility of some laws imposed by OHR. An example given was the witness protection law.

Institutions, interagency cooperation and specialised units: A general problem faced by all institutions was the lack of resources, including the low level of salaries, which resulted in low motivation and efficiency. Many agencies, in particular at the decision making level, were politicised. Another major problem complex was the lack of cooperation between different agencies, unclear roles and responsibilities, and the lack of specialisation and joint investigations.

Prevention: Knowledge and awareness of problems of corruption, organised crime and money laundering and their impact were not only missing among the public in general but also within public institutions, including criminal justice institutions. Public pressure on politicians and decision-makers and thus the political will to take action is limited. Some participants had the impression that crime was ever increasing the more efforts were made to counter it. The explanation was that corruption, organised crime and money laundering were control offences which means that they only become known if they are investigated.

Problem analysis

In both entities the political will needs to be mobilised to adopt and implement legislation against corruption, organised crime and money laundering. A number of relevant legal reform projects are underway with the assistance of OHR and the Council of Europe.

Participants proposed the drafting of a law on corruption which clearly stipulates the acts and behaviour which are criminalised. OHR and the Council of Europe should provide assistance in this matter.

An important aspect in terms of corruption would be laws on conflicts of interest and financing of political parties.

The money laundering legislation which is being drafted by OHR should be reviewed by the Council of Europe. The possibility to reinvest assets seized into law enforcement should be considered.

A law dealing with organised crime, including defining the acts to be criminalised, providing for the necessary investigative means and institutions should be drafted.

The different legislation should contain provisions for inter-entity cooperation.

The OHR has developed a new strategy for substantial reform in the field of criminal legislation and criminal judicial procedures in both entities. Further meetings with OHR and COE experts are expected to take place in early 2000 to agree on the substance and on the agenda of reforming:

Laws on corruption, organised crime and money laundering would need to be reflected in the criminal codes and the criminal procedure codes which are currently being finalised with Council of Europe assistance. Further discussions will set forth the priorities to ensure consistency in the reform.

In any case, participants agreed that criminal codes and criminal procedure codes of both entities should be harmonised as much as possible.

Legislation

Prevention should be approached in a comprehensive way. It should promote an active involvment of the public but also target public officials.

Such a comprehensive approach requires that the necessary resources are made available and that institutions are created or strengthened. Obviously, this could only be achieved with the assistance of the international community, including NGOs.

The Anti-corruption Strategy for Bosnia and Herzegovina contains measures on the prevention side which should be implemented and perhaps be expanded.

Participants acknowledged that Transparency International has the intention of opening a chapter in BiH in early 2000.

Participants appreciated that the payment bureaux system is to be abolished in the near future.

Prevention

Needs in terms of strengthening institutions and their cooperation with each other, and of providing them with the necessary resources and training are vast. It would be difficult to meet all of these needs in the short term. In addition, political obstacles would have to be overcome.

Nevertheless, a feasible and strategic entry point was identified by participants, which was to strengthen interagency cooperation and specialisation through joint investigations. Three models could be envisaged:

During the workshop the second model was preferred. In each of the two entities a multi-agency task force should be established headed by the public prosecutor and composed of officers from different law enforcement agencies. This task force would be responsible for major investigations into corruption, organised crime and money laundering, support investigations carried out by other prosecutors and agencies, and develop strategies and policies. This task force would also compile and analyse relevant information. This should result in a strategy on data collection, exchange and protection.

The task forces of the two entities would meet regularly and cooperate with each other. Once conditions permit such cooperation could be formalised.

The international community should support these task forces in a concerted effort by providing know how, systematic training and other resources.

OHR could initiate the creation of such task forces in cooperation with other organisations.

A second step would be the design of a consolidated and focused training plan and the provision of equipment.

A further important measure would be to clarify the roles of different agencies in investigations. The function of the investigative judge should be abolished and the role of the prosecutor in investigations strengthened.

Interagency cooperation and specialised units

Strengthen cooperation between agencies

In order to improve international cooperation the following was proposed:

The question of cooperation across entity lines, and in the Federation across cantons is mainly one of political will.

However, practical cooperation at the technical level on a case by case basis should be possible. This should gradually be institutionalised. If cooperation agreements are signed, they should actively be made used of.

The envisaged State Border Service will be a national institution and thus an important entry point to address cross-entity smuggling and other crimes.

A specific type of crime which could be tackled through this service and through cooperation of other agencies is the trafficking in human beings for sexual exploitation.

Cross-border/-line cooperation

The nature of the challenges posed by organised crime, corruption and money laundering in Bosnia and Herzegovina appears to be such that a well-coordinated comprehensive effort is required. The Council of Europe should contribute to this effort through a multi-year programme.

The overriding rationale of the programme should be the promotion of democracy, rule of law, human rights, and social and economic progress.

The objective of the programme should be to strengthen capacities to prevent and control corruption, organised crime and money laundering. The standards of the Council of Europe and the European Union should serve as the framework of reference.

The programme should focus on four priority areas:

As much as possible it should build on ongoing activities supported by and seek cooperation with other institutions.

Details of this programme should be formulated in the course of the preparatory phase of PACO, that is, in 2000.

In the context of OHR's strategy for substantial reforms in the field of criminal legislation and criminal judicial procedures in both entities, OHR and Council of Europe should expand their cooperation to strengthen legislation on corruption, organised crime and money laundering, to ensure consistency and to harmonise the codes of both entities as much as possible.

Specifically, the following action should be taken:

(include proposed deadlines)

The knowledge on corruption, organised crime and money laundering should be improved as a basis for enhanced efforts to make the public and public officials aware of the nature and impact of these phenomena.

The World Bank should be encouraged to carry out its diagnostics survey on corruption as soon as possible.

Surveys should also be carried out to get a better understanding on organised crime and money laundering. This should be accompanied by a thorough assessment as to how the international community should approach organised crime and money laundering in BiH.

Transparency International should be encouraged to establish a national chapter as envisaged. Other NGOs should expand their activities in these fields and be supported by the international community.

A special effort should be undertaken to implement, and if necessary expand, the prevention components of the Comprehensive Anti-corruption Strategy for Bosnia and Herzegovina.

The Anti-corruption Strategy proposed a 'review of aid institution procedures' in order to reduce opportunities for corruption when delivering aid. This review should be carried out as soon as possible.

The payment bureaux system should be abolished by December 2000 as proposed.

In each of the two entities a multi-agency task force should be established headed by the public prosecutor and composed of officers from different law enforcement agencies. This task force should be responsible for major investigations into corruption, organised crime and money laundering, support investigations carried out by other prosecutors and agencies, and develop strategies and policies.

Key international organisations and bilateral donors should establish a working group to provide support to these task forces in the form of well focused advice, training and other resources.

BiH should sign as soon as possible the Council of Europe Criminal Law Convention on Corruption and agree to particpate in the GRECO monitoring mechanism. This would be a first important step towards accession to international agreements and a reflection of the political will of the BIH leadership to cooperate internationally.

The Council of Europe should invite officials from BiH to participate in relevant seminars under the joint Council of Europe/European Commission 'Octopus Programme against corruption and organised crime in States in transition'.

BiH should fully participate in activities against organised crime and corruption under the Stability Pact for South-eastern Europe.