Financial Inclusion and Crime Prevention: Bosnia and Herzegovina’s New AML/CTF Law

Harmonizing with EU Standards

The Parliament of Bosnia and Herzegovina (BiH) has passed a new law on anti-money laundering and counter-terrorism financing, which aims to bring the country in line with key EU standards. The Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Law, adopted on February 16, is a crucial step towards EU integration.

Key Features of the AML/CTF Law

• Broadening Scope: Broadens the scope of entities covered to include a wider array of financial institutions and businesses.
• Innovative Measures: Introduces innovative measures such as video identification, electronic signatures, and electronic stamps for Know-Your-Customer (KYC) checks.
• Indirect KYC Checks: Empowers obligors to conduct KYC checks indirectly through third parties.
• Clear Obligations: Defines more clearly obligors’ rights and obligations to end relationships with clients if unable to monitor their activities or manage risk effectively.
• Statutory Limitations: Incorporates mechanisms to guarantee the implementation of statutory limitations for cash transactions and transport of physical currencies.

Collaboration and International Cooperation

The law emphasizes collaboration between different authorities within BiH dealing with fight against money laundering and terrorism financing, as well as international cooperation with relevant institutions and authorities.

Conclusion

In conclusion, the AML/CTF Law represents a multifaceted legislative initiative that positions BiH as a proactive player in the global fight against financial crimes. It fosters EU integration, embraces technological advancements in the financial sector, and enhances financial inclusion.