Results of the "Nekretnina" Operation: Numerous Malversations, Fictitious Companies, Suspicious Transactions Discovered...

The Service for Foreigners' Affairs, in the wider area of Bosnia and Herzegovina, conducted an operation codenamed "Nekretnina" (Real Estate), which involved the control of legal entities whose founders or responsible persons are foreign citizens from Kuwait, UAE, Qatar, Syria, Libya, Saudi Arabia, Russia, and Ukraine, and who own real estate in BiH, the Service announced, reports Patria.

The reason for conducting the operation is operational information about the existence of legal entities owned by foreign citizens that are fictitiously registered in BiH, solely for the purpose of acquiring ownership of real estate, then purchasing real estate for further rental to foreign tourists, avoiding legal obligations regarding the keeping of records of foreign guests and registration of foreigners, and the stay of such foreigners in BiH, contrary to legal provisions, which has negative implications for the security and economic system of BiH.

The control covered 691 legal entities whose owners or founders are citizens of Kuwait, Libya, Qatar, Saudi Arabia, Syria, UAE, Russia, and Ukraine, and 16 tourist resorts owned by legal entities founded by foreign citizens.

The checks carried out determined that 192 legal entities exist and operate at the registered address, where foreign citizens have regulated temporary stay.

A total of 499 legal entities were not found or it could not be determined whether they exist at the registered addresses. Given that there are no prominent company names, nor adequate premises, or they are registered at non-existent addresses, abandoned buildings, private houses and apartments without access, and their owners and authorized persons reside outside BiH, it is evident that they do not operate at the registered company addresses. The controlled legal entities own more than 600 residential and commercial buildings, and possess 1768 land registry extracts in the company's name.

Checks on the residence status of foreign citizens in the controlled legal entities revealed that 158 foreign citizens, founders or co-founders, stayed in BiH under the visa or visa-free regime, without regulating their residence status in BiH, 113 foreign citizens, founders or co-founders in the controlled legal entities, were not recorded as having entered BiH at all, 6 foreign citizens, founders or co-founders in the controlled legal entities, violated immigration regulations regarding the length of stay outside BiH during their approved stay, while in 58 legal entities that do not exist at the registered addresses, it was determined that foreigners had acquired the right to temporary stay in BiH based on an issued work permit, which constitutes an abuse of the permit.

For all foreign citizens who have violated immigration regulations in BiH, legally prescribed measures of visa or temporary stay cancellation, or expulsion measures, will be taken.

During the controls, the Service obtained certain data within the jurisdiction of other authorities. It is indicative that the founding capital of the legal entities that were subject to control most often amounts to 2,000 KM, and according to the facts established by the foreigner inspectors, the companies own real estate worth several hundred thousand marks. Therefore, it is unclear how real estate of such value was acquired and how money transactions were carried out. Also, there are indications of certain abuses of notary contracts on beneficial ownership between foreign citizens, as the actual owners, and BiH citizens who purchase real estate on behalf of foreign citizens, thereby damaging BiH as a state in terms of collecting fees, taxes, and other dues.

Given that during the preparations for planning these activities, cooperation with tax authorities and the Agency for Investigations and Protection was established and determined, the Service will forward all established facts and irregularities related to the jurisdiction of other authorities to the competent tax and police authorities, for the purpose of taking measures and actions within their jurisdiction.

The Service for Foreigners' Affairs particularly emphasizes that there is a significant number of controlled legal entities in BiH that operate in accordance with the law and employ a considerable number of BiH citizens. The Service will continue to contribute and support the work of legal entities, significant investors in BiH, through the efficient resolution of the residence status of foreign citizens and other matters within its jurisdiction.

The Service for Foreigners' Affairs will continue to continuously undertake activities to control legal entities founded by foreigners in the future, and take prescribed measures within its jurisdiction, and will forward the collected information on non-compliance with legal regulations within the jurisdiction of other agencies to the competent agencies and exchange information with them in a timely manner, and if necessary, undertake joint activities.