Money laundering involves disguising the origins of illegally obtained funds to make them appear legitimate. Extremist groups may use this process to convert money from criminal activities – such as drug trafficking or fraud – into assets or income that seem lawful, helping them finance their operations while avoiding detection.
For example, Serbia’s prosecutors suspected the Principi leadership of using money laundering methods to conceal their criminal proceeds, primarily by investing in real estate. Principi began as a hooligan faction supporting Partizan Belgrade, and has reportedly evolved into an organized crime group engaged in drug trafficking, extortion, private security services and murder-for-hire.55 According to an indictment filed in one case, leaders and associates have allegedly purchased properties, undertaken construction projects and acquired luxury items like high-end cars and watches.56 However, their methods were unsophisticated: properties were often bought with cash or at prices below market value, leaving a paper trail that eventually drew prosecutorial scrutiny.57 Principi also supposedly tried to enter the automotive sector, buying and reselling cars at low prices, renting parking lots and establishing car rental companies to channel illicit funds into the legal economy.58 Although rudimentary, these methods allowed the group to diversify revenue streams while maintaining a cover of legitimacy.
55Public Prosecutor’s Office for Organized Crime, Serbia, Indictment no. KTO 65/21, 30 July 2021; Public Prosecutor’s Office for
Organized Crime, Serbia, Indictment no. KTO 80/23, 25 September 2023; Interview with Stevan Dojčinović, investigative journalist, in
Belgrade, Serbia, July 2024.
56 Public Prosecutor’s Office for Organized Crime, Serbia, Indictment no. KTO 80/23, 25 September 2023.
57 Interview with an anti-money laundering expert in Belgrade, Serbia, July 2024.
58 Public Prosecutor’s Office for Organized Crime, Serbia, Indictment no. KTO 80/23, 25 September 2023.