AML Training Programs in Bosnia and Herzegovina: A Look at Bank Practices

Introduction

Banks in Bosnia and Herzegovina are taking significant steps to combat money laundering and terrorism financing by implementing robust Anti-Money Laundering (AML) training programs for their employees. In this article, we will take a closer look at the practices of one such bank, ASA Banka Dioničko Društvo Sarajevo.

Compliance with International Standards

Located in Sarajevo, ASA Banka operates under the supervision of the Banking Agency of the Federation of BiH and is subject to regular internal and external audits by independent third-party assessors. The bank’s AML policies and practices are aligned with international standards, including those set by the Financial Action Task Force (FATF) and the European Union.

Key Components of ASA Banka’s AML Program

The bank’s AML program includes the following key components:

Mandatory Customer Identification

• Strict internal regulations for preventing, detecting, and reporting suspicious transactions
• Appointment of a responsible officer to oversee the implementation of its AML framework across all business units
• “Know Your Customer” procedures to ensure adequate information about the nature and purpose of transactions

Risk Assessment Policies

• Definition of the level of risk associated with groups of clients, single clients, business relationships, transactions, or products
• Prevention of potential abuse for money laundering or financing terrorist activities

Correspondent Banking Relationships

• Establishment of correspondent relationships only with licensed banks in their countries of origin
• Prohibition on allowing clients to directly use a correspondent account for carrying out business transactions

Employee Training Programs

The bank implements AML training programs for relevant employees, which includes:

• Identifying and reporting transactions that must be reported to state authorities
• Examples of different forms of money laundering, including its products and services, and internal AML procedures