Regarding the decision to put Bosnia and Herzegovina on the list of jurisdictions under increased supervision in the area of prevention of money laundering and terrorist financing (the so-called gray list), 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 the Republic of Srpska jointly announce that the financial sector of Bosnia and Herzegovina remains stable, liquid, adequately capitalized and safe.
The decision to put Bosnia and Herzegovina on the gray list refers to the broader institutional and legislative framework in the field of preventing money laundering and terrorist financing, and requires coordinated action by competent institutions at all levels of government. Financial institutions, and especially the banking sector, are not the cause of the circumstances that led to this decision, because it is a segment of the system of Bosnia and Herzegovina that operates in accordance with strict regulatory requirements.
The banking sector is liquid and adequately capitalized, and operates according to strictly regulated procedures and under the continuous supervision of competent banking agencies. Banks apply demanding procedures for client identification, transaction monitoring, risk assessment, reporting to competent authorities and prevention of abuse of the financial system. In this way, they continuously confirm compliance with applicable regulatory requirements and international standards in the field of preventing money laundering and terrorist financing.
Payment systems function smoothly, and monetary stability is successfully maintained through the arrangement of the currency board. The convertible mark remains stable and firmly tied to the euro at a fixed exchange rate.
In the circumstances created by putting Bosnia and Herzegovina on the gray list, the deposit insurance system continues to function smoothly and protect deposits of individuals and legal entities in banks in accordance with current regulations.
At the same time, it is important to look objectively at the possible consequences of putting Bosnia and Herzegovina on the gray list. Although the financial sector is not the cause of the circumstances that led to this decision, it could be among the sectors that will feel its practical effects the most. This can, first of all, be reflected in additional checks of international transactions, increased requirements of foreign and correspondent banks, longer deadlines for processing certain cross-border payments, and increased administrative and operational costs. Such circumstances may affect economic entities and citizens who do business or conduct transactions with foreign countries, but do not call into question the stability of the domestic financial system.
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 the Republic of Srpska continue to act in a coordinated and responsible manner, with the aim of preserving financial stability, protecting citizens and the economy, and strengthening confidence in the financial system of Bosnia and Herzegovina.
