Financial Crime World

Financial Crime Risk Assessment Templates in Bosnia and Herzegovina

Bosnia and Herzegovina has made significant progress in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations. However, there are still areas that require improvement to strengthen its regulatory environment and reduce the risk of financial crime.

Recent Assessment: Key Findings

According to a recent assessment, Bosnia and Herzegovina has been rated as “largely compliant” in several key areas, including:

  • National Cooperation and Coordination: The country has made progress in coordinating efforts between different agencies and institutions to combat financial crime.
  • Money Laundering Offense: Bosnia and Herzegovina has implemented laws and regulations to prevent money laundering and has established a framework for investigating and prosecuting such crimes.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing: The country has made progress in implementing targeted financial sanctions related to terrorism and terrorist financing.

However, there are still some challenges that need to be addressed. Bosnia and Herzegovina has been rated as “non-compliant” in several areas, including:

  • Regulation and Supervision of DNFBPs (Designated Non-Financial Businesses and Professions): The country needs to improve its regulation and supervision of DNFBPs, including the implementation of customer due diligence requirements.
  • Transparency and Beneficial Ownership of Legal Persons and Arrangements: Bosnia and Herzegovina should strengthen its regulations on transparency and beneficial ownership of legal persons and arrangements.
  • Higher-Risk Countries: The country needs to improve its risk-based approach to addressing higher-risk countries.

Improvement Areas

Bosnia and Herzegovina also needs to improve its implementation of:

  • Customer Due Diligence Requirements for DNFBPs: The country should strengthen its regulations on customer due diligence requirements for DNFBPs.
  • Internal Controls and Foreign Branches and Subsidiaries: Bosnia and Herzegovina should improve its internal controls and foreign branches and subsidiaries to prevent financial crime.
  • Powers of Supervisors: The country needs to enhance the powers of supervisors to ensure effective regulation and supervision of financial institutions.

Strengthening Regulation and Supervision

To reduce the risk of financial crime, Bosnia and Herzegovina should strengthen its regulation and supervision of financial institutions. This includes:

  • Reporting Suspicious Transactions: Financial institutions should be required to report suspicious transactions to prevent money laundering and terrorist financing.
  • Implementation of FATF Recommendations: The country needs to continue implementing the technical requirements of the FATF Recommendations to address remaining challenges.

By continuing to strengthen its implementation of the technical requirements, Bosnia and Herzegovina can reduce the risk of financial crime and improve its overall regulatory environment.