Financial Crime World

ASIAN FINANCIAL CRIMES CHALLENGES IN BOSNIA AND HERZEGOVINA

Bosnia and Herzegovina is a country in Southeastern Europe that has been struggling to implement effective measures against financial crimes, particularly those linked to Asia. According to the latest report by the Financial Action Task Force (FATF), the country faces significant challenges in complying with international standards.

Technical Compliance Ratings

The FATF’s Technical Compliance Ratings assess the extent to which a country has implemented the technical requirements of the FATF Recommendations. In Bosnia and Herzegovina, the ratings are as follows:

  • R.1 - Assessing risk & applying risk-based approach: Largely Compliant (LC)
  • R.2 - National cooperation and coordination: Largely Compliant (LC)
  • R.3 - Money laundering offence: Largely Compliant (LC)
  • R.4 - Confiscation and provisional measures: Partially Compliant (PC)
  • R.5 - Terrorist financing offence: Partially Compliant (PC)

Challenges in Implementing Measures

Bosnia and Herzegovina also faces challenges in implementing measures to prevent the misuse of non-profit organizations, as it is rated Non-Compliant (NC) for R.8.

The country has made progress in implementing measures to prevent the misuse of financial institutions, with ratings of Largely Compliant (LC) or Partially Compliant (PC) for several recommendations, including:

  • R.10 - Customer due diligence
  • R.11 - Record keeping
  • R.12 - Politically exposed persons

However, Bosnia and Herzegovina still faces challenges in implementing measures to prevent the misuse of correspondent banking relationships, with a rating of Largely Compliant (LC) for R.13.

Areas Requiring Improvement

The country also needs to improve its implementation of measures to prevent the misuse of:

  • Money or value transfer services (R.14)
  • New technologies (R.15)
  • Wire transfers (R.16)

Furthermore, Bosnia and Herzegovina faces challenges in implementing measures to prevent the misuse of:

  • DNFBPs (R.22 - Customer due diligence and R.23 - Other measures)
  • Legal persons and arrangements (R.24 and R.25)

Conclusion

In conclusion, Bosnia and Herzegovina faces significant challenges in implementing effective measures against financial crimes, particularly those linked to Asia. The country needs to improve its implementation of several recommendations, including measures to prevent the misuse of non-profit organizations, correspondent banking relationships, money or value transfer services, new technologies, wire transfers, DNFBPs, legal persons and arrangements.