Banking Fraud Schemes Uncovered in Bosnia and Herzegovina

Largest Financial Scam in Postwar History Exposed

Prosecutors in Bosnia and Herzegovina have revealed a massive banking fraud scheme that has left millions of dollars in deposits missing from companies, public institutions, and citizens’ accounts. The suspects, including the former director of the Agency for Banking of Republika Srpska, are accused of issuing fraudulent loans and guarantees to companies linked to the owner of Bobar Banka while knowing they were unable to pay back.

Key Facts about the Scandal

• Missing Deposits: Millions in deposits have gone missing from health institutions, municipalities, and the public electro-distribution company.
• Citizen Impact: Approximately one-fifth of the lost money belonged to ordinary citizens who had deposited their personal savings in the bank.
• Investigation Timeline: The investigation began after the owner of Bobar Banka, Gavrilo Bobar, died in 2014, revealing major financial losses at the bank.

Suspects and Charges

The following individuals have been indicted:

• Former Director of Agency for Banking of Republika Srpska: Accused of participating in another scheme involving Banka Srpske, which collapsed after hundreds of millions worth of clients’ savings were invested in fake companies and stolen.
• Babar Banka Shareholders: Suspected of fraudulently issuing loans and guarantees to companies linked to the owner of Bobar Banka.

Ongoing Investigation

The scandal has also implicated Pavlovic Bank, with allegations of fraud involving Bosnian Serb president Milorad Dodik. The investigation into this bank is ongoing.

Conclusion

Prosecutors have charged the suspects with organized crime, misuse of office, and money laundering. This case is being hailed as the largest financial scam in Bosnia and Herzegovina’s postwar history.