Following the decision to place Bosnia and Herzegovina on the increased monitoring list for anti-money laundering and terrorist financing (the so-called grey list), key financial institutions issued a joint, reassuring statement to the public.
They state that the financial sector of Bosnia and Herzegovina remains fully stable, liquid, adequately capitalized, and safe.
The joint statement is signed by the Central Bank of Bosnia and Herzegovina, the Deposit Insurance Agency of Bosnia and Herzegovina, the Banking Agency of the Federation of Bosnia and Herzegovina, and the Banking Agency of Republika Srpska.
The leading financial institutions emphasized that the decision to place Bosnia and Herzegovina on the grey list addresses the broader institutional and legislative anti-money launderingframework, which requires urgent and coordinated action by competent authorities at all levels. Financial institutions, especially banks, are not the cause of the circumstances leading to this decision.
“This refers to a segment of the Bosnia and Herzegovina system that operates in accordance with strict regulatory requirements,” the statement reads.
The banking sector in Bosnia and Herzegovina is under constant monitoring and implements rigorous client identification procedures, transaction tracking, risk assessments, and reporting to competent bodies, demonstrating alignment with international standards. Citizens and the economy have no reason to worry regarding the domestic currency and savings. The payment system functions smoothly, and monetary stability is maintained through the currency board. The Bosnia and Herzegovina convertible mark (BAM) remains stable and firmly pegged to the euro at a fixed exchange rate, the key financial institutions said.
Also, the deposit insurance system continues to function smoothly and fully safeguards the deposits of individuals and legal entities, in line with applicable regulations. Although the financial sector is not responsible for the current situation, it could bear the brunt of the practical effects on an international level.
The institutions call for an objective observation of the situation, stating that the obstacles may manifest as additional checks on international transactions, enhanced requirements from foreign and correspondent banks, longer processing times for certain cross-border payments, and increased administrative and operational costs.
These circumstances could affect economic conditions and citizens who conduct transactions abroad through more complicated procedures, without jeopardizing the stability of the domestic financial system.
The Central Bank of Bosnia and Herzegovina, the Deposit Insurance Agency, and the entity banking agencies stated that they will continue to act in a coordinated and responsible manner to preserve financial stability, protect citizens and the economy, and further strengthen confidence in Bosnia and Herzegovina’s financial system.
