Financial Crime World

BOSNIA AND HERZEGOVINA CRACKS DOWN ON MONEY LAUNDERING

KEY AREAS OF STRENGTH

National Cooperation and Coordination

  • Strengthened Inter-Institutional Relationships: Bosnia and Herzegovina has made significant progress in implementing the national cooperation and coordination requirement (R.2).
  • Coordinated Approach to AML/CFT Efforts: The country has established a coordinated approach to anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts.

Money Laundering Offence

  • Implementation of Money Laundering Offence: Bosnia and Herzegovina has implemented an offence of money laundering, as required by Recommendation R.3.
  • Combating Financial Crimes: This is a crucial step in combating financial crimes.

Financial Institution Secrecy Laws

  • Strengthened Financial Institution Secrecy Laws: The country has strengthened its financial institution secrecy laws, as mandated by Recommendation R.9.
  • Prevention of Misuse of Banking Services: This aims to prevent the misuse of banking services for illicit purposes.

AREAS FOR IMPROVEMENT

Confiscation and Provisional Measures

  • Implementation Challenges: While progress has been made in this area, Bosnia and Herzegovina still faces challenges in implementing effective confiscation and provisional measures (R.4).
  • Need for Improvement: The country needs to strengthen its implementation of these measures.

Terrorist Financing Offence

  • Strengthening the Offence: Bosnia and Herzegovina should strengthen its offence of terrorist financing, as required by Recommendation R.5.
  • Combating Terrorism Financing: This is essential in combating terrorism financing.
  • Enhancement Needed: The country should enhance its targeted financial sanctions related to proliferation, as mandated by Recommendation R.7.
  • Prevention of Proliferation: This aims to prevent the proliferation of weapons of mass destruction.

NEW INITIATIVES

Strengthening the Independence of the Central Bank and Financial Services Supervisor

  • Enhanced Oversight: The government has introduced new initiatives to strengthen the independence of the Central Bank and Financial Services Supervisor.
  • Improved Oversight and Regulation: This aims to enhance oversight and regulation of financial institutions.

Implementing More Effective Customer Due Diligence Measures for All Financial Institutions

  • Enhanced Customer Due Diligence: The government has introduced new initiatives to implement more effective customer due diligence (CDD) measures for all financial institutions.
  • Prevention of Money Laundering and Terrorism Financing: This aims to prevent money laundering and terrorism financing.

Enhancing Cooperation with Foreign Authorities on AML/CFT Matters

  • Enhanced International Cooperation: The government has introduced new initiatives to enhance cooperation with foreign authorities on AML/CFT matters.
  • Improved International Coordination: This aims to improve international coordination in combating financial crimes.

NEXT STEPS

Finalizing the Implementation of Recommendations R.4, R.5, and R.7

  • Completion of Implementation: Bosnia and Herzegovina’s next steps should focus on finalizing the implementation of these recommendations.
  • Combating Financial Crimes: This is essential in combating financial crimes.

Strengthening its DNFBPs Framework to Ensure Effective Customer Due Diligence (R.22)

  • Strengthening the Framework: The country should strengthen its DNFBPs framework to ensure effective customer due diligence.
  • Prevention of Money Laundering and Terrorism Financing: This aims to prevent money laundering and terrorism financing.
  • Enhancement Needed: The country should enhance transparency and beneficial ownership requirements for legal persons and arrangements.
  • Prevention of Money Laundering and Terrorism Financing: This aims to prevent money laundering and terrorism financing.

By continuing to strengthen its AML/CFT regime, Bosnia and Herzegovina can further reduce the risks associated with money laundering and terrorist financing. The country’s commitment to implementing the FATF Recommendations demonstrates a proactive approach to combating financial crimes.

Sources:

  • FATF Follow-Up Report on Bosnia and Herzegovina (2023)
  • World Bank Anti-Money Laundering/Combating the Financing of Terrorism Regulations Database
  • European Commission Country Report on Bosnia and Herzegovina (2022)