Combating Illicit Financial Flows in Bosnia and Herzegovina

Introduction

Bosnia and Herzegovina has been taking measures to curb illicit financial flows (IFFs) and combat money laundering and terrorist financing (ML/TF). This report highlights the efforts made by the country to detect, investigate, and prevent these crimes.

Financial Intelligence Unit

Detection and Investigation of ML/TF

The Financial Intelligence Unit (FID) within the State Investigation and Protection Agency (SIPA) plays a crucial role in detecting, investigating, and combating money laundering and terrorist financing. The FID collects data from foreign financial intelligence units and has implemented software to report suspicious transactions.

Key Initiatives

Data Collection

• Collects data from foreign financial intelligence units
• Implements software for reporting suspicious transactions

Indirect Taxation Authority

The Indirect Taxation Authority controls, inspects, and searches individuals and vehicles crossing the borders of Bosnia and Herzegovina. It has also signed memorandums of understanding with state institutions for effective exchange of information.

Investigations

The FID is responsible for detecting, preventing, and investigating money laundering and terrorist financing. However, despite adequate resources, financial investigations lack systematic initiation and prescribed obligations.

Proposed Solutions

• Create specialized units focused on collecting evidence for financial investigations
• Initiate amendments in legislation to improve the process