MANS today filed to the Special State Prosecutor for Organized Crime and Corruption another criminal complaint based on the documentation that we obtained investigating links between the Government, organized crime and the business sector in Montenegro.
With the new criminal complaint in addition to drug lord Darko Saric who is suspected of money laundering through the First Bank of Montenegro earned through the sale of cocaine, and complex schema of companies that the bank gave loans under suspicious circumstances, are included Rodoljub Radulovic and Stanko Subotic, whose companies were also borrowers. With the criminal complaint is covered and a legal entity the First Bank of Montenegro, which is majority owned by the family of Prime Minister Milo Djukanovic.
Data that have been obtained by the regional network of investigative journalists (OCCRP) show that the First Bank allowed to the companies connected to Saric, Radulovic, and Subotic to besed on the accounts in that bank to get loans under unusually favorable terms, for which there is a reasonable suspicion for being used for money laundering.
In dealing with Saric and Radulovic, actually with their companies, the First Bank violated the law and internal regulations, assigning them loans in violation of the prescribed procedures and with no funds secured from which they could be return. For example, when opening an account for Lafin Trade LLC in the U.S. state of Delaware and Camarilla Corporation of Seychelles, the First Bank failed to obtain a valid certificate from the registry, as well as copies of identity documents for people who had access to the account. In this way the First Bank violated the Law on Prevention of money laundering and financing terrorism, which prescribes that the organization obtains information by examining the original or certified documentation from the public register, which must not be older than three months. Both of these companies controlled Drako Saric and both are, as later determined prosecution of Montenegro, used for money laundering for at least 7,4 million euros.
Beside the fact that the banks have a legal obligation to report all suspicion transactions to the Directorate for prevention of money laundering, reported First Bank never reported any suspicious transaction for Saric’s company Lafin Trade Camarilla Corporation, which on the trial of Dusko Saric testified Predrag Mitrovic, then Director of the Board.
The company Lafin Trade significantly helped the First Bank on May 6th, 2008, when deposited 6 million euros on the period for five years. The deposit came in the critical time for the First Bank, which already could not fulfill clients’ orders. Comparing with the other leading depositors, deposit by reported Saric had an unusual commission. In fact, while to the other depositors paid interest was between 5 and 8 percent, the company Lafin received only 1.5 percent. Depositors who deposit their money for a longer period paid interest rates are usually high. The only other depositors with such low interest rate were the owner of the bank Aco Djukanovic (1.5 percent) and Caldero Trading Limited (2 percent), the company owned by a close friend of Milo Djukanovic, Zoran Becirovic.
Accounts of the First Bank were used and for the transactions of disputed land of SC Mogren because MANS filed a charge against Saric, Boro Lazovic, and others who supported them in that business. For those purposes, in April 2009, the First Bank issued a certificate that Saric’s company has at least 1 million euros deposited on its account in this bank.
Beside reported Saric, the First Bank loaned and other persons accused for organized crime, as the accused cigarette smuggler Branislav Micunovic and his wife, who is awarded a multimillion overdraft. As well, drug lord Naser Keljmendi through the First Bank made significant cash payments.
However, in addition to loans granted to companies connected to Saric and his criminal group, the largest and most suspicious loans reported First Bank approved to a Serbian businessman Satnko Subotic.
Companies of reported Subotic from the First Bank, owned by the family of Prime Minister of Montenegro, had received at least 21 million euros in problematic loans, which often were not insured or anticipated payment in full at the end of the period. That practice brought in an unenviable position the First Bank but as well and Subotic, since he was one of its biggest debtor. Collapse of his companies could also mean and the collapse of the First Bank which operated with a large amount of public money, which shows the influence of applicants on political, legislative, and executive authorities.
Due to a suspicious loans approved to reported Subotic, between 2007 and 2010, the Central Bank has sent a team of six controllers and hired an Audit Institution PricewaterhouseCoopers (PwC) to check the business operations of the First Bank. Seven secret reports of the Central Bank show that the First Bank in many ways violated the law. By approving loans acted contrary to the business policy and good banking practice, and from that benefited friends, business partners, and relatives of the family Djukanovic. Some of the major violations were related to loans of Subotic’s companies.
Collected documentation opens serious suspicions that the First Bank for a long time were used by members of organized crime for money laundering gained through criminal activities, actually through cocaine and cigarette smuggling.
MANS invites Special State Prosecutor to urgently opens an investigation on this case, in details investigate business of the First Bank and mentioned transactions, and to define the nature of the relationship between members of the criminal gang of Darko Saric and the family of Prime Minister Milo Djukanovic.
MANS
