Authorities in Montenegro have filed criminal charges against two Russian nationals, identified as M.K. (53) and N.S. (52), alongside the Budva-based company A.&S d.o.o., for allegedly committing tax evasion exceeding €51,197. This action follows a coordinated investigation by the Basic State Prosecutor’s Office in Kotor, in collaboration with the Sector for the Fight Against Crime, particularly focusing on corruption and economic crime.
The police report indicates that both individuals, acting as executive director and authorized representatives of A.&S d.o.o., engaged in illegal activities from 2021 to 2025. They reportedly withdrew cash from the company’s bank accounts in Montenegro without proper business documentation, aiming to evade tax obligations. This conduct resulted in unlawful financial gains linked to personal income tax evasion, directly affecting Montenegro’s budget.
Details of the Allegations
The investigation revealed that M.K. and N.S. utilized their positions within the company to facilitate these transactions. By continuously withdrawing funds in cash, they avoided paying taxes, which constitutes a criminal act under Montenegrin law. The amount in question, €51,197, represents not only the evaded taxes but also significant material damage to the national budget.
In response to these findings, the police have intensified their efforts under a national project known as “Evazija,” which aims to uncover and prosecute individuals involved in economic crimes that undermine the country’s economic order. This initiative highlights the government’s commitment to combat tax evasion and improve financial integrity within the business sector.
Implications for Business in Montenegro
This case underscores the increasing scrutiny of financial activities, especially those involving foreign nationals operating in Montenegro. The authorities have signaled a zero-tolerance policy towards economic crimes, which could have broader implications for businesses in the region. Companies are reminded of the importance of maintaining compliance with financial regulations to avoid severe penalties.
As the investigation continues, the outcomes will likely influence future enforcement actions and the overall landscape of corporate governance in Montenegro. The government’s proactive stance aims to enhance transparency and secure the integrity of the country’s economic framework.
