Bosnia and Herzegovina Takes a Crucial Step Towards EU Integration with New Anti-Money Laundering Law

A Major Milestone in Bosnia and Herzegovina’s Path to European Union Integration

In a significant move, the Parliament of Bosnia and Herzegovina (BiH) has passed a new Law on Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF Law), marking a crucial step towards the country’s integration into the European Union. This legislation harmonizes BiH’s legal framework with key EU standards, demonstrating the country’s commitment to meeting international obligations.

Key Provisions of the AML/CTF Law

• Comprehensive Regulatory Framework: The law introduces a wide-ranging regulatory framework for anti-money laundering and counter-terrorism financing, covering various financial institutions and businesses.
• Regulation of Unregulated Entities: The law includes provisions for the regulation of previously unregulated entities, such as those dealing with crypto assets and e-money.
• Broadened Scope of Entities Covered: The law broadens the scope of entities covered, subjecting a wider array of financial institutions to anti-money laundering regulations.

Notable Features of the Legislation

• Detailed Provisions on Procedures and Measures: The legislation outlines specific criteria for different types of obligated entities when dealing with anti-money laundering and counter-terrorism financing susceptible transactions and businesses.
• Facilitation of Client Onboarding: The law enables Know-Your-Customer (KYC) checks through video identification, electronic signatures, and electronic stamps, facilitating client onboarding for financial institutions.

Mechanisms to Guarantee Implementation

• Statutory Limitations for Cash Transactions: The law ensures that no one is exempted from statutory limitations for cash transactions and transport of physical currencies, mitigating the risk of money laundering and terrorist financing.
• Enhanced Cooperation and International Collaboration: The law encourages collaboration between different authorities within BiH dealing with the fight against money laundering and terrorism financing, as well as international cooperation with relevant institutions and authorities.

Conclusion

The AML/CTF Law represents a multifaceted and forward-thinking legislative initiative that positions BiH as a proactive player in the global fight against financial crimes. It fosters EU integration, embraces technological advancements in the financial sector, and ensures a safer and more secure financial environment for all stakeholders.