The EU delegation in Bosnia and Herzegovina and the Office of the EU Special Representative in Bosnia and Herzegovina called on the authorities in Bosnia and Herzegovina to act as quickly as possible in eliminating the deficiencies in the system in Bosnia and Herzegovina for the prevention of money laundering and terrorist financing.
In February 2025, Bosnia and Herzegovina entered a one-year observation period by the Financial Action Task Force against Money Laundering (FATF) – the global supervisory body for the prevention of money laundering and terrorist financing.
This happened as a result of a series of deficiencies in the system for preventing money laundering and combating the financing of terrorism in Bosnia and Herzegovina, which were determined by the MONEYVAL Committee of the Council of Europe in its mutual evaluation report from December 2024.
The mentioned one-year observation period expires in a few weeks. If significant progress is not made in eliminating the shortcomings pointed out by MONEYVAL, there is a high probability that FATF will include Bosnia and Herzegovina in the list of jurisdictions under increased supervision (the so-called “grey list”).
Inclusion in the gray list would have immediate and concrete consequences for business entities, banks, payment transactions, investments and economic credibility of Bosnia and Herzegovina, and would affect access to international financial markets and transactions, private commercial activities, as well as public fiscal affairs. It could also negatively affect the prospects of Bosnia and Herzegovina to join the Single Euro Payments Area (SEPA).
Therefore, it is necessary for the competent institutions in Bosnia and Herzegovina to act urgently, i.e. to proceed with the adoption of two laws at the state level – the Law on Asset Confiscation and Management, and the Law on Targeted Financial Sanctions for Terrorism, Terrorism Financing and the Proliferation of Weapons of Mass Destruction. Establishing a register of real owners of legal entities in Bosnia and Herzegovina is also something that has been long overdue, and requires urgent action by the entity and Brčko District.
Bosnia and Herzegovina has already made some progress in strengthening its framework for preventing money laundering and combating terrorist financing, including the adoption of the Law on Preventing Money Laundering and Terrorist Financing, which was also one of the key laws on the country’s European path. We also welcome the establishment of the Permanent Coordinating Body for the Prevention of Money Laundering and the Fight against the Financing of Terrorism and the Prevention of the Proliferation of Weapons of Mass Destruction, which brings together representatives of competent institutions from all levels of government in BiH, as well as the recent adoption of the Rulebook on the Implementation of the Law on the Prevention of Money Laundering and the Financing of Terrorism.
Bosnia and Herzegovina has shown that progress is possible when there is political commitment and effective coordination. It is necessary that the competent institutions in BiH urgently make additional efforts in the coming weeks, before the end of the one-year observation period by the FATF, says the statement of the EU Delegation to BiH and the Office of the EU Special Representative in BiH.
