Financial Crime World

BOSNIA AND HERZEGOVINA TAKES MAJOR STEP IN FIGHT AGAINST FINANCIAL CRIME WITH PASSAGE OF NEW AML/CTF LAW

In a decisive move, the Parliament of Bosnia and Herzegovina has passed a new Law on Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF Law), marking a significant milestone in the country’s path to European Union integration.

A Harmonized Approach to EU Standards

The law aims to harmonize Bosnia and Herzegovina’s legal and regulatory landscape with key EU standards, including the regulation (EU) 2018/1672 and directives (EU) 2015/849 and (EU) 2018/843.

Key Provisions of the Law

  • Broadened Scope: The law introduces a comprehensive framework that recognizes and regulates previously unregulated financial services and products, such as crypto assets and e-money.
  • Innovative Measures: The law includes innovative measures, such as video identification, electronic signatures, and electronic stamps for KYC checks.
  • Indirect KYC Checks: Certain obligors are empowered to conduct indirect KYC checks through third parties.
  • Enhanced Due Diligence: Situations requiring enhanced due diligence and simplified checks are clarified.
  • Specific Criteria: Specific criteria for different types of obligated entities are outlined.

Guaranteeing Implementation

The law incorporates mechanisms to guarantee the implementation of statutory limitations for cash transactions and transport of physical currencies, ensuring that no one is exempted from these obligations and thereby mitigating risk of money laundering and terrorist financing in transactions prone to suspicious.

Promoting Collaboration and International Cooperation

The law encourages and promotes collaboration between different authorities within Bosnia and Herzegovina dealing with the 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.

A Proactive Player in the Global Fight Against Financial Crimes

In conclusion, the AML/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.