Financial Crime World

BOSNIA AND HERZEGOVINA FALLS SHORT ON ANTI-MONEY LAUNDERING REGULATIONS

The Financial Action Task Force (FATF) has issued a revised public statement on Bosnia and Herzegovina’s progress in implementing anti-money laundering (AML) regulations. The move comes after the country failed to make sufficient progress in updating its Criminal Code and enforcing by-laws related to preventive law.

Insufficient Progress

According to the FATF, Bosnia and Herzegovina had made some progress since the last meeting in addressing amendments to the criminalization of financing of terrorism. However, overall progress remained insufficient, prompting the FATF to invoke the next step in its Compliance Enhancing Procedures.

Key Findings

  • Bosnia and Herzegovina failed to update its Criminal Code and enforce by-laws related to preventive law.
  • The country made some progress in addressing amendments to the criminalization of financing of terrorism.
  • Overall progress remained insufficient, prompting the FATF to invoke the next step in its Compliance Enhancing Procedures.

Consequences of Non-Compliance

Experts warn that Bosnia and Herzegovina’s failure to implement effective AML regulations puts the country at risk of becoming a haven for money launderers and terrorist financiers. This could have serious consequences for the country’s economy and reputation, as well as its relations with international partners.

Risks to the Country

  • Money laundering and terrorist financing could become widespread in Bosnia and Herzegovina.
  • The country’s economy and reputation could be severely impacted.
  • Relations with international partners could suffer.

Call for Action

The FATF has called on Bosnia and Herzegovina to take immediate action to address its AML/CFT deficiencies, including updating its Criminal Code and enforcing by-laws related to preventive law. The country must also demonstrate a commitment to implementing effective regulations and enforcing them in practice.

Required Actions

  • Update the Criminal Code.
  • Enforce by-laws related to preventive law.
  • Demonstrate a commitment to implementing effective regulations and enforcing them in practice.