Financial Crime World

Bosnia and Herzegovina Strengthens Anti-Money Laundering Legislation

New Act on Prevention of Money-Laundering and Financing of Terrorism

SARAJEVO, Bosnia and Herzegovina - The Parliament of Bosnia and Herzegovina has adopted a new Act on Prevention of Money-Laundering and Financing of Terrorism (AML Act), which introduces several key amendments to the country’s AML legislation.

Key Changes in the New AML Act

  • Expansion of AML Obligations: Virtual currency service providers and real estate lease agents with monthly leases valued at BAM 20,000 (approximately EUR 10,000) or more are now under the scope of AML obligations.
  • Increased Client Identification Requirements: AML obligors must identify clients who do not have an established business relationship with them, each time a transaction is made involving a transfer of BAM 2,000 (approximately EUR 1,000) or more.
  • Additional Obligations for Certain Businesses: Gaming organizers must identify and monitor clients conducting transactions where the value equals or exceeds BAM 2,000 (approximately EUR 1,000).
  • Verification of Identity upon Entry: Casinos and “gambling venues” are required to verify the identity of clients upon entry onto premises.
  • Identification of Ultimate Beneficial Owners (UBOs): AML obligors must identify UBOs of their clients, defined as a person having at least 25% of business shares, stocks, voting rights, or other controlling rights.

New AML Act Provisions

  • Video Identification: Video identification of clients is allowed under certain conditions, including when products or services present low AML risk and the client’s identity is verified via biometric ID document issued in a country not considered high-risk.
  • Acceptance of Cash Payments: Businesses are prohibited from accepting cash payments in excess of BAM 30,000 (approximately EUR 15,000) for goods and services, including real estate transactions.
  • Reporting Transactions: AML obligors must report transactions exceeding BAM 30,000 to the Financial Intelligence Unit, regardless of whether they were made in cash or via bank transfer.

Implementation of the New AML Act

The new AML Act aims to strengthen Bosnia and Herzegovina’s anti-money laundering framework and prevent financial crime in the country. The legislation comes into effect immediately.