Bosnia and Herzegovina Passes New Anti-Money Laundering Law

A Step Towards EU Integration

In a decisive move, the Parliament of Bosnia and Herzegovina (BiH) has passed a new law on anti-money laundering and counter-terrorism financing (AML/CTF), aiming to bring the country’s regulatory landscape in line with key EU standards. The legislation comes ahead of a scheduled MONEYVALL evaluation round, set to take place from 13th to 28th February, which could have resulted in BiH being grey-listed by the Financial Action Task Force (FATF).

Key Features of the AML/CTF Law

• Broadened scope: A wider array of financial institutions and businesses are now subject to anti-money laundering regulations.
• Detailed provisions: Procedures and measures for dealing with suspicious transactions and businesses are outlined, including enhanced due diligence criteria.
• Innovative measures: Video identification, electronic signatures, and electronic stamps are enabled for client onboarding, facilitating the use of fintech and digitalization in the financial sector.

Promoting Cooperation and International Collaboration

The law establishes a permanent coordination body to promote cooperation between authorities dealing with money laundering and terrorism financing, as well as international cooperation to strengthen the fight against transnational activities.

A Significant Step Towards EU Integration and Financial Sector Digitalization

In conclusion, the AML/CTF Law represents a significant step towards EU integration and a proactive approach to addressing financial crimes. It positions BiH at the forefront of regulatory readiness for emerging technologies in the financial sector, fostering growth and stability in the region.