Financial Crime World

Financial Inclusion and Crime Prevention in Bosnia and Herzegovina

Bosnia and Herzegovina has made significant progress in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations. However, there are still areas that need improvement.

Assessing Risk and Applying a Risk-Based Approach

In terms of assessing risk and applying a risk-based approach, Bosnia and Herzegovina has made progress in implementing this requirement, scoring “largely compliant”. However, the country still needs to improve its national cooperation and coordination, as well as its implementation of targeted financial sanctions related to terrorism and terrorist financing.

Areas for Improvement

Bosnia and Herzegovina has shown some weaknesses in its implementation of certain requirements. For example:

  • The country is non-compliant with the requirement to regulate and supervise DNFBPs (designated non-financial businesses and professions).
  • There are weaknesses in transparency and beneficial ownership of legal persons and arrangements.

Progress in Financial Inclusion

In terms of financial inclusion, Bosnia and Herzegovina has made progress in increasing access to financial services for its citizens. According to a recent report:

  • The country’s banking system is stable.
  • The number of bank branches and ATMs has increased significantly in recent years.

Challenges Facing Bosnia and Herzegovina

Despite progress in financial inclusion, there are still challenges facing the country in terms of crime prevention. Bosnia and Herzegovina has struggled with money laundering and terrorist financing, and it needs to improve its implementation of the FATF Recommendations in these areas.

Recommendations for Improvement

To address these challenges, Bosnia and Herzegovina should prioritize the implementation of the requirements that it is non-compliant or partially compliant with. This includes:

  • Strengthening national cooperation and coordination.
  • Improving regulation and supervision of DNFBPs.
  • Increasing transparency and beneficial ownership of legal persons and arrangements.

In addition, the country should continue to work on improving its financial inclusion by increasing access to financial services for its citizens. This can be achieved through initiatives such as:

  • Mobile banking.
  • Digital payment systems.
  • Microfinance programs.

Conclusion

While Bosnia and Herzegovina has made progress in implementing the FATF Recommendations, it still needs to address several areas of non-compliance and partial compliance. By prioritizing these efforts, the country can improve its financial inclusion and crime prevention efforts, and strengthen its position as a stable and secure economy in the region.