Financial Crimes in Emerging Markets: Bosnia and Herzegovina Takes a Crucial Step Towards EU Integration

A Move to Prevent Grey-Listing by MONEYVAL

The Parliament of Bosnia and Herzegovina (BiH) has passed a new Law on Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF Law), aimed at averting potential grey-listing by MONEYVAL. This move positions BiH at the forefront of regulatory readiness for emerging technologies in the financial sector, ensuring harmonization with key EU standards.

Key Features of the Legislation

• Inclusive Regulations: The AML/CTF Law includes a wider array of financial institutions and businesses under anti-money laundering regulations.
• Detailed Regulation for Professions: More detailed regulation is provided for activities related to anti-money laundering and counter-terrorism financing in certain professions, such as notaries and attorneys.
• Innovative Measures for KYC Checks:
  • Video identification
  • Electronic signatures
  • Electronic stamps
• Indirect KYC Checks: Obligors are empowered to conduct KYC checks indirectly through third parties.
• Statutory Limitations for Cash Transactions and Transport: Mechanisms guarantee the implementation of statutory limitations for cash transactions and transport of physical currencies.

Collaboration and International Cooperation

The law emphasizes collaboration between different authorities within BiH dealing with money laundering and terrorist financing, as well as international cooperation with relevant institutions and authorities promoting the exchange of information.

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 enhances the country’s regulatory readiness for emerging technologies.