Conflict of interest is set of circumstances in which the bias of a public official or civil servant in the decision-making process is compromised, thereby endangering the general interest. In contemporary literature conflicts of interest arise from corruption and represent abuse of power by politicians in pursuit of their own benefits. Conflict of interest is associated with economically underdeveloped countries, where it is a low source of wealth and therefore the state are working to reduce the interest of politicians through sufficient monetary compensation. Contemporary constitutional democracies develop various institutional mechanisms to prevent conflict of interest, such as control and verification. The paper discusses the basic theories about the correlation of conflicts of interest and corruption and explains their opposition to morality, ethics and good governance. There is growing awareness of the public about solving this problem and the importance of developing an institutional and legal framework to suppress conflict of interest. The impact of the Law on the Prevention of Conflicts of Interest and the Law on Civil Servants and Employees on the control and verification of all public holders is also being observed.