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Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regulations in Bosnia and Herzegovina

This article outlines key requirements for complying with AML/CFT regulations in Bosnia and Herzegovina, focusing on the verification and establishment of client identities.

Establishing and Verifying Client Identities

Subsidiaries, Branch Offices, and Other Organizational Units

  • Liable persons must apply AML/CFT provisions to their head offices, subsidiaries, and other organizational units within Bosnia and Herzegovina.
  • If a country where a subsidiary or branch office is located has different minimum requirements than the law in Bosnia and Herzegovina, the subsidiary or branch office can choose to apply either the local laws or the laws of Bosnia and Herzegovina, whichever provides a higher standard for preventing money laundering and financing terrorism.

Establishing and Verifying the Identity of Natural Persons

  • Liable persons must verify and establish the identity of clients who are natural persons by obtaining data from valid identification documents.
  • If an available identification document does not contain all required data, liable persons can obtain missing information from other valid public documents or directly from the client.
  • Liable persons must verify and establish the identity of clients who are legal persons by obtaining data from original or certified copies of documentation from the Court Registry or other public registry.
  • Documentation must be updated and accurate, reflecting the true client’s situation.
  • Liable persons must establish and verify the identity of a legal person’s representative by obtaining data through inspecting valid identification documents.
  • If there are doubts about the truthfulness of collected information, liable persons can request written statements from the representative.
  • Liable persons must establish and verify the identity of authorized persons for clients who are legal persons by obtaining data through inspecting valid identification documents.
  • If there are doubts about the truthfulness of collected information, liable persons can request written statements from the authorized person.

Compliance Requirements

Liable persons in Bosnia and Herzegovina must comply with these regulations to prevent money laundering and financing terrorism. Failure to do so may result in severe consequences, including fines and reputational damage.