The fight against money laundering and terrorist financing is not merely a technical issue, but a key process that directly protects the domestic economy and financial system, strengthens public trust, and ensures the stability required by international partners seeking to invest in Bosnia and Herzegovina.
This was stated at the conference “From Risk to Resilience: Protecting Trade and Investment in Bosnia and Herzegovina,” held at the Parliamentary Assembly of Bosnia and Herzegovina and organized by the Ministry of Security of Bosnia and Herzegovina in cooperation with the International Governance and Risk Institute (GovRisk) and the American Chamber of Commerce in Bosnia and Herzegovina (AmCham).
The event brought together senior representatives of government institutions, the private sector, and international partners to identify practical and coordinated measures in response to MONEYVAL’s evaluation of Bosnia and Herzegovina.
Deputy Minister of Security Ivica Bošnjak stated that the Ministry has undertaken a series of measures aimed at implementing the recommendations outlined in the MONEYVAL report.
He noted that, at the Ministry’s proposal, a coordination body was established to align activities at the state, entity, and lower levels of government. Ten subcommittees have also been formed, four of which are already actively working on combating money laundering, terrorist financing, and the financing of weapons of mass destruction.
“In addition to the laws adopted last year in the field of anti-money laundering and counter-terrorist financing, implementing regulations have also been adopted, including the Rulebook on the Implementation of the Law on the Prevention of Money Laundering and Terrorist Financing,” Bošnjak said.
He added that the Coordination Body, comprising representatives of all competent institutions, has agreed on the final draft of the law on targeted financial sanctions, regulating restrictive measures on the disposal of assets aimed at preventing terrorism, terrorist financing, and the financing of weapons of mass destruction.
The draft law is currently in the process of obtaining approvals from the Legislation Office and the Ministry of Finance and is undergoing public e-consultations. Bošnjak expressed expectations that it could be submitted to the Council of Ministers by the end of the month and enter parliamentary procedure shortly thereafter.
He stressed that the adoption of laws and secondary legislation alone is not sufficient, emphasizing that effective implementation and oversight are crucial. Today’s conference, he noted, demonstrates the importance of joint action, particularly with the active involvement of the private sector.
Bošnjak warned that placing Bosnia and Herzegovina on the so-called grey list would have serious consequences for the economy, investment climate, credit rating, and citizens.
“I sincerely hope that this will not happen,” he concluded.
Luigi Soreca, Head of the EU Delegation to Bosnia and Herzegovina, stated that combating money laundering is in the country’s direct interest, as it is essential for long-term economic stability and development.
He emphasized that Bosnia and Herzegovina is currently at a critical juncture. In the coming weeks, relevant international institutions will assess the country’s progress.
“Many promises have been made, but much work remains to be done in a very short timeframe,” Soreca said, urging authorities at all levels to intensify efforts to prevent the country from once again being placed on the grey list.
He recalled the negative consequences of the 2018–2022 period, when Bosnia and Herzegovina was grey-listed, including direct damage to the economy and citizens.
Soreca reaffirmed that the European Union remains firmly committed to supporting Bosnia and Herzegovina, particularly as a candidate country. The EU provides not only technical but also political and financial support, including €15 million under the Growth Plan specifically allocated to strengthening anti-money laundering and counter-terrorist financing efforts.
“These issues are among the priorities on Bosnia and Herzegovina’s EU path, and partnership is essential, especially in challenging times,” Soreca said.
Mark Tervakoski, Director of the INL Program for Europe and Asia at the U.S. State Department, stated that the U.S. administration has prioritized efforts to combat illicit financial flows, dismantle related networks, and strengthen domestic capacities to address such crimes.
He noted that assessments by international bodies such as MONEYVAL and FATF represent an opportunity to improve Bosnia and Herzegovina’s system, further safeguard the integrity of its financial sector, and create conditions for greater prosperity and improved business opportunities.
Renaud Meyer, Resident Representative of UNDP in Bosnia and Herzegovina, emphasized that the timing of the conference is critical, given the risk of renewed grey-listing, which would inevitably affect the country’s overall development.
He underlined that UNDP’s engagement extends beyond discussions to concrete actions in anti-money laundering, combating illicit financial flows, and fighting corruption, all of which pose direct threats to the country’s development. Funds trapped in illicit flows, he noted, are diverted from essential sectors such as education, healthcare, and social protection.
Dominic Le Moignan, Executive Director of GovRisk, stressed that financial integrity forms the foundation of economic security in every country. The outcome of the current process, he said, is of immense importance for Bosnia and Herzegovina’s economy, citizens, and international credibility.
BH Telecom CEO Amel Kovačević warned that failure to adopt the necessary legislation could lead to a downgrade in the country’s credit rating, resulting in higher borrowing costs for both citizens and businesses. He added that political obstructions risk further economic deterioration.
MONEYVAL, a Council of Europe monitoring mechanism, evaluates national systems for combating money laundering and terrorist financing. A decision on whether Bosnia and Herzegovina will be placed on the FATF grey list is expected at the FATF plenary session in June.
Grey-listing signals strategic deficiencies in a country’s anti-money laundering and counter-terrorist financing framework. While it does not entail direct sanctions, it typically results in increased scrutiny by international banks and investors, slower cross-border transactions, higher compliance costs, and reduced foreign investment inflows.
