Financial Inclusion and Crime Prevention: Bosnia and Herzegovina’s Unique Approach
In a region where organized crime and money laundering have long been a concern, Bosnia and Herzegovina has taken a unique approach to financial inclusion and crime prevention. The Financial Intelligence Department (FID), a main organisational unit of the State Investigation and Protection Agency (SIPA), is at the forefront of this effort.
A Global Standard
The FID is the only financial intelligence unit in Bosnia and Herzegovina operating in accordance with binding international standards on the prevention and fight against money laundering and financing of terrorist activities. Since its inception in 2004, the FID has been a member of the Egmont Group of Financial Intelligence Units, a global network of 146 units that share information and best practices.
Key Features:
- Operates in accordance with binding international standards
- Member of the Egmont Group of Financial Intelligence Units
- Shares information and best practices with other members
Extensive Powers and Responsibilities
The FID’s tasks and competence are provided for by the Law on Prevention of Money Laundering and Financing of Terrorist Activities. In addition to receiving, collecting, recording, and analysing data, information, and documents, the FID also investigates and submits findings to prosecutor’s offices and other relevant authorities in Bosnia and Herzegovina and abroad.
Key Powers:
- Collects necessary information and documentation from financial and non-financial institutions
- Issues orders to suspend transactions for up to five working days
- Orders financial institutions to monitor and report on client operations for up to six months
Partnership and Cooperation
The FID promotes cooperation between relevant authorities in Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina, Republika Srpska, and Brcko District, as well as with international organizations. It chairs the Working Group of BiH Institutions for Preventing Money Laundering and Financing Terrorist Activities and has a leading role in drafting laws, secondary legislation, and strategic documents in this area.
Key Partnerships:
- Relevant authorities in Bosnia and Herzegovina
- Federation of Bosnia and Herzegovina
- Republika Srpska
- Brcko District
- International organizations
Training and Supervision
The FID is involved in training employees of financial and non-financial institutions, prosecutor’s offices, and law enforcement agencies. It also oversees all financial and non-financial institutions subject to the Law on Prevention of Money Laundering and Financing of Terrorist Activities, conducting direct supervision over certain categories of obligors.
Key Training Areas:
- Employees of financial and non-financial institutions
- Prosecutor’s offices
- Law enforcement agencies
A Leading Role in the Region
The FID’s expertise and experience make it a leading authority in the region on prevention and fight against money laundering and financing of terrorist activities. Its representation in the Council of Europe Moneyval Committee and similar international bodies ensures that Bosnia and Herzegovina remains committed to upholding binding standards in this area.
Conclusion
In conclusion, the Financial Intelligence Department of Bosnia and Herzegovina has taken a unique approach to financial inclusion and crime prevention, with extensive powers and responsibilities, strong partnerships, and a leading role in the region. Its efforts demonstrate a commitment to upholding international standards and ensuring a safe and stable financial environment for all citizens.