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Police in Montenegro have arrested Nemanja Krstajić on a Serbian Interpol office warrant, on suspicion of his "involvement in Darko Šarić's business affairs".
According to the Podgorica-based daily Dan, the arrest took place late on Monday in the town of Pljevlja, in northern Montenegro.
Šarić, also a native of Pljevlja, is a fugitive from justice charged in Serbia with heading a major drug trafficking group.
Krstajić was placed in extradition prison in the town of Bijelo Polje, also in northern Montenegro, the newspaper reported.
Krstajić has no previous criminal record, but in 2009 he allegedly served as executive director of two companies connected with Šarić, which brought him into the focus of Serbian investigators.
According to the article, Krstajić is not suspected of involvement in drug trafficking. The investigation against him also included several dozen other companies owned by Šarić, and is "of a financial nature".
Šarić and his suspected criminal associates have been indicted in Belgrade with attempting to smuggle nearly three tons of cocaine from South America to Europe.
The Serbian paramilitary who became a key prosecution witness at his former comrades’ trial for war crimes in Kosovo says he had to speak out about the brutal massacres his unit committed.