Mandic, who was arrested in his flat on the basis of a warrant issued by the Bosnian police, had served as a minister in the war-time government of Radovan Karadzic, a Hague tribunal indictee on the run. In 1995 he left Bosnia-Herzegovina and the authorities in Sarajevo indicted him for money laundering in 2003.
High Representative to Bosnia-Herzegovina Paddy Ashdown has accused Mandic of financially supporting Karadzic. The Montenegrin Interior Ministry said Mandic would be transferred to Bosnia.