BOSNIA AND HERZEGOVINA: BEST PRACTICES FOR ANTI-MONEY LAUNDERING
The Parliament of Bosnia and Herzegovina has passed a new Law on Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF Law), which aims to harmonize the country’s legal and regulatory landscape with key EU standards.
A Comprehensive Framework for Anti-Money Laundering
The AML/CTF Law introduces a comprehensive framework that recognizes and regulates previously unregulated financial services and products, such as crypto assets and e-money. This legislation significantly broadens the scope of entities covered, subjecting a wider array of financial institutions and businesses to anti-money laundering regulations.
Key Features of the Law
- Detailed Provisions: The law includes detailed provisions regarding procedures and measures obligated entities must implement when dealing with anti-money laundering and counterterrorism financing susceptible transactions and businesses.
- Innovative Measures: The legislation enables KYC checks through video identification, electronic signatures, and electronic stamps. This facilitates a more efficient and streamlined process for financial institutions.
- Third-Party KYC Checks: Certain obligors are empowered to conduct KYC checks indirectly through third parties, provided these entities adhere to anti-money laundering and counter-terrorism financing standards equal or superior to those stipulated in the law.
Promoting Collaboration and International Cooperation
The AML/CTF Law encourages collaboration between different authorities within Bosnia and Herzegovina dealing with fight against money laundering and terrorism financing. Additionally, international cooperation is promoted through the exchange of information to strengthen the fight against transnational money laundering activities.
Conclusion
In conclusion, the AML/CTF Law represents a multifaceted and forward-thinking legislative initiative that positions Bosnia and Herzegovina as a proactive player in the global fight against financial crimes. The law fosters EU integration and embraces the opportunities presented by technological advancements in the financial sector.