BOSNIA AND HERZEGOVINA ADOPTS SWEEPING REFORMS WITH NEW ANTI-MONEY LAUNDERING AND COUNTER TERRORISM FINANCING LAW
Decisive Move to Strengthen Fight Against Financial Crimes
In a decisive move, the Parliament of Bosnia and Herzegovina has passed a new Law on Anti-Money Laundering and Counter-Terrorism Financing (ALM/CTF Law), which aims to strengthen the country’s fight against financial crimes and bring its legal framework in line with EU standards.
Key Provisions of the ALM/CTF Law
The law, adopted on February 16th, comes ahead of a scheduled evaluation by MONEYVAL, an international body that assesses countries’ anti-money laundering and counter-terrorism financing regimes. Bosnia and Herzegovina is set to undergo its fifth round of evaluation from February 13th to 28th, with the aim of avoiding a potential grey-listing and mitigating associated economic, financial, and political repercussions.
The ALM/CTF Law seeks to harmonize Bosnia and Herzegovina’s legal and regulatory landscape with key EU standards, including Regulation (EU) 2018/1672 and Directives (EU) 2015/849 and (EU) 2018/843. This alignment underlines the country’s commitment to international cooperation and adherence to established norms in anti-money laundering and counter-terrorism financing.
Key Features of the Law
- Broadening of Scope: The law broadens the scope of entities covered, subjecting a wider array of financial institutions and businesses to anti-money laundering regulations.
- Detailed Provisions: The introduction of detailed provisions regarding procedures and measures obligated entities must implement when dealing with anti-money laundering and counter-terrorism financing susceptible transactions and businesses.
- Innovative Measures: Innovative measures enabling KYC checks through video identification, electronic signatures, and electronic stamps.
- Indirect KYC Checks: Empowering certain obligors 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.
Collaboration and International Cooperation
The ALM/CTF Law also encourages collaboration between different authorities within Bosnia and Herzegovina dealing with fight against money laundering and terrorism financing, as well as international cooperation with relevant institutions and authorities promoting the exchange of information to strengthen the fight against transnational money laundering activities.
Conclusion
In conclusion, the ALM/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, fosters EU integration, and embraces the opportunities presented by technological advancements in the financial sector.