Financial Regulatory Bodies in Bosnia and Herzegovina Shine in Combating Money Laundering and Terrorist Financing
A Beacon of Excellence: The Financial Intelligence Department (FID)
SARAJEVO, Bosnia and Herzegovina - The Financial Intelligence Department (FID) of the State Investigation and Protection Agency (SIPA) has emerged as a beacon of excellence in combating money laundering and terrorist financing in Bosnia and Herzegovina.
A Brief History
- Established in 2004, the FID is the only financial intelligence unit in Bosnia and Herzegovina operating in accordance with international standards.
- It has been a member of the Egmont Group of Financial Intelligence Units since 2005, demonstrating its commitment to global best practices in this field.
Key Responsibilities
The FID’s mandate extends beyond mere compliance with laws and regulations. Its key responsibilities include:
- Preventing Money Laundering and Financing of Terrorist Activities: The FID plays a crucial role in preventing money laundering and financing of terrorist activities through proactive measures such as data collection, analysis, and investigation.
- Promoting Cooperation: It promotes cooperation between relevant authorities in Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina, Republika Srpska, and Brcko District.
Unique Organizational Structure
What sets the FID apart from its neighboring countries is its unique organizational structure. Unlike other financial intelligence units that operate as independent organizations within ministries of finance, the FID is a main organizational unit of SIPA, with all police and investigative powers at its disposal.
Powers and Authorities
In cases where suspicion of money laundering or financing of terrorist activities arises, the FID has the authority to:
- Collect necessary information and documentation from financial and non-financial institutions
- Issue an order to suspend transactions for up to five working days
- Order financial institutions to monitor and report on client operations for up to six months
Major Investigations and Expert Support
The Financial Intelligence Department is involved in major investigations into organized and economically motivated crime in Bosnia and Herzegovina, providing expert support to prosecutors through complex financial analyses and participation in investigation teams.
Training and Supervision
Moreover, the FID plays a significant role in training employees of financial and non-financial institutions, prosecutor’s offices, and law enforcement agencies on anti-money laundering and combating terrorist financing best practices. It also conducts direct supervision over certain categories of obligors under the Law on Prevention of Money Laundering and Financing of Terrorist Activities.
Leadership and Representation
The Financial Intelligence Department chairs the Working Group of BiH Institutions for Preventing Money Laundering and Financing Terrorist Activities, drafting laws, secondary legislation, and strategic documents in this area. It also has a leading role in representing Bosnia and Herzegovina in international bodies such as the Council of Europe’s Moneyval Committee.
Internal Organizational Structure
The FID’s internal organizational structure includes:
- Analytical Section: Responsible for analyzing financial data and identifying potential money laundering or terrorist financing activities.
- Investigation Section: Conducts investigations into suspected money laundering or terrorist financing cases.
- Section for Legal Affairs, International Cooperation, and Support: Provides legal advice, coordinates international cooperation, and provides support to other sections within the FID.
Conclusion
Overall, the Financial Intelligence Department is an exemplary model of effective financial regulation and a testament to Bosnia and Herzegovina’s commitment to combating money laundering and terrorist financing.