Introduction 

The importance of economy is grounded on the sole fact that many other spheres among the social and state order depend on its functioning, either directly or indirectly. For this reason, states express particular interest in the economy, which is widely reflected in the creation of normative conditions for its better functioning, as well as in terms of shielding the economy from criminal activities, that is party achieved by legislative criminal protection. Corporate criminality is associated frequently with a broad dark figure of crime, i.e. differences in the number of recorded and overall committed crimes in accordance with official statistics. 

In the light of the 2015 Serbian National strategy for countering shadow economy, official stats have shown that shadow economy, along with high rates of taxes and contributions, remains as one of the biggest obstacles to the development of legitimate businesses since 2010. Back in 2015, a survey found that 64% of business representatives firmly believe that businesses operating in the grey zone mainly compromise the functioning of the economy. As the causes of shadow economy, the 2015 National strategy highlighted low levels of tax culture, lack of knowledge in relation to the state’s legal framework, high unemployment rate and relatively high tax burdens with additional administrative barriers. The 2019 National strategy brings a number of new insights. Namely, the size of the shadow economy in the Serbian market has decreased substantially due to an improved economic and corporate environment, macroeconomic stability and enhanced work of competent authorities. 

Protecting the economy with relevant provisions of criminal codes is only one aspect of protection envisioned in the Serbian normative framework. In addition to the Criminal Code, the functioning of the economy can be preserved through corporate offences, regulated officially by the Law on corporate offences, and misdemeanors as well, along with provisions that can be found in secondary criminal legislation. The protection provided by the Criminal Code is considered as ultima ratio when it comes to the suppression of crime, and hence should differ from the protection provided through the regulation of corporate offences and misdemeanors, placing emphasis on the intensity of harm. The Serbian Companies Act lays down four criminal offences as an addition to the basic criminal protection under the Criminal Code, as well as, for example, the Capital Markets Act, which prescribes three criminal offences in its provisions. 

Criminal classification of corporate crime 

Corporate crimes are regulated by Chapter twenty-two of the Serbian Criminal Code. There have been theoretical difficulties in determining the exact notion of corporate crime, yet it may be defined narrowly as a criminal offence aimed at protecting the economic system. In the sphere of such legal protection, the issue related to the interplay between basic and secondary criminal legislation arises. With insight into foreign examples of criminal legislation, we may encounter various solutions. Namely, in most European states, basic criminal offences against economy have been foreseen within chapters of criminal codes regulating crimes against property, such as the Swiss solution, and the rest have been set out in pieces of secondary criminal legislation. 

Our Criminal Code, however, envisions a special chapter. Similar solutions can be found in the region. For example, the Croatian Criminal Code foresees these crimes within a special chapter as well, namely Chapter twenty-four, as well as the Criminal Code of Montenegro that stipulates these offences within its Chapter twenty-three. 

Hence, the Chapter twenty-two of the Serbian Criminal Code encompasses a plethora of corporate crimes, namely offences against economic interests. Corporate crimes include fraud in performing business activities, embezzlement in performing business activities, tax evasion, the abuse of position of the responsible person, conclusion of a restrictive agreement, money laundering, disclosure of business secrets, damaging business reputation and credit rating and other offences listed in the above-mentioned chapter. 

Criminal law is usually used as an ultima ratio mechanism, namely the last resort in sanctioning non-compliance and violations of the object of protection, which in this case refers to economy. Legal literature often stipulates that crimes against economy and economic interests constitute particularly serious offences. Even though developed economic systems imply an active role and interest of the state in their functioning, the number and expectation of committing such crimes has been idealized from the early history of the American capitalism and the story of the ‘first million’.  

The criminological aspect of corporate crime 

Corporate crime has frequently been associated with the expression ‘white collar crime’. The stated term indicates non-violent criminal offences committed for the financial benefit of perpetrators that belong to a higher social milieu within the profession they engage in. In criminology, the term white collar crime first appeared in 1939 when it was defined by the renowned 20th century criminologist Edwin Sutherland, often referred to as the father of white collar crime studies. The very notion is broader than the mere criminal regulation of corporate crime since it usually involves cyber crime as well. That is to say, the expression itself is founded more on the characteristics of the wrongdoer. 

Corporate crime is one aspect of white collar crime. In 1973, criminologists Marshall Clinard and Richard Quinney called for a distinction of white collar criminality with an emphasis on corporate crime, highlighting the severity of consequences for the society it produces. Criminal investigations of corporate crime are significant because, as the authors pointed out, the response of the criminal justice system as a whole differs in comparison to other types of crimes. 

Conclusion 

When discussing the regulation of corporate crimes by the Criminal Code and secondary criminal legislation as well, it is crucial to highlight their blanket disposition reflected in the fact that when interpreting relevant provisions, it is also necessary to consult other regulations in the field of corporate and commercial law. Furthermore, this indicates the need to possess a wider scope of knowledge in the areas of both criminal and corporate law, putting an emphasis on taking on a multidisciplinary approach in criminal defense.  

Literature: 

Books / Publications / Journal Articles 

1. Clinard, M. & Quinney, R. (1973) Criminal Behavior Systems: A Typology – 2nd edition, New York: Holt.
2. Commercial Court of Appeals (2013) Practice of commercial courts – Bulletin No. 3/2013, Belgrade. 
3. Friedrichs, D. O. (2009) Trusted Criminals – White Collar Crime in Contemporary Society – 4th edition, Cengage Learning Inc. 
4. National program for countering shadow economy in Serbia (2015) Official Gazette no. 110/2015. 
5. National program for countering shadow economy in Serbia with the action plan for the implementation of national program for countering shadow economy for the period 2019-2020, Official Gazette no. 27/2019. 
6. Stevanovic, I. & Colovic, V. (eds) (2017) Corporate crimes, Institute for Criminology and Sociological Research; Institute for Comparative Law, Belgrade. 
7. Sutherland, E. (1940) The White Collar Criminal, American Sociological Review 5: 1-12.

Legal Framework / Legal Commentaries 

1. Capital Markets Act, Official Gazette of the Republic of Serbia no. 153/2005. 
2. Companies Act, Official Gazette of the Republic of Serbia no. 109/2021. 
3. Criminal Code of the Republic of Croatia, Official Gazette of the Republic of Croatia no. 84/21 
4. Criminal Code of the Republic of Monte Negro, Official Gazette of the Republic of Monte Negro no. 3/2020. 
5. Criminal Code of the Republic of Serbia, Official Gazette of the Republic of Serbia no. 35/2019 
6. Law on corporate offences, Official Gazette of the Republic of Serbia no. 101/2005. 
7. Stojanovic, Z. (2020) Commentary of the Criminal Code – 10th supplemented edition, JP ‘Sluzbeni Glasnik’.