Bosnia and Herzegovina: Landmark Anti-Money Laundering Law Passed

Boosting EU Integration Aspirations and Averting Grey-Listing

In a decisive move, the Parliament of Bosnia and Herzegovina (BiH) has passed a new Law on Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF Law). This landmark legislation comes into effect as BiH prepares to face its fifth round of evaluation by MONEYVALL, scheduled from February 13-28.

Key Features of the AML/CTF Law

• Broader Scope: The law broadens the scope of entities covered, subjecting a wider array of financial institutions and businesses to anti-money laundering regulations.
• Regulation for Professions: Detailed regulation is introduced for activities related to anti-money laundering and counter-terrorism financing in certain professions, such as notaries and attorneys.
• Innovative Measures: The law enables KYC checks through video identification, electronic signatures, and electronic stamps.
• Indirect KYC Checks: Obligors are empowered to conduct indirect KYC checks through third parties, provided these entities adhere to anti-money laundering and counter-terrorism financing standards.
• Strengthened Financial Intelligence Unit (FOO): The role of the local FOO is strengthened in making more immediate and far-reaching actions and exerting control over obligors and transactions.

International Cooperation and Collaboration

The law encourages collaboration between different authorities within BiH 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

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, fosters EU integration, and embraces the opportunities presented by technological advancements in the financial sector.