Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated three individuals in Bosnia and Herzegovina (BiH) pursuant to Executive Orders (E.O.) 14033 or E.O. 14059. These designations build on other recent OFAC sanctions in the region and, collectively underscore the United States’ willingness to hold accountable those who are undermining democratic institutions and furthering their agendas for political and personal gain, at the expense of peace, stability, and progress in the Western Balkans.
“The three individuals designated today constitute a threat to regional stability, institutional trust, and the aspirations of those seeking democratic governance in the Western Balkans,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States will continue to target those who perpetuate corruption and undermine the postwar agreements and institutions established as part of the hard-won Dayton Peace Agreement.”
PERPETUATING CORRUPTION BY MISUSING STATE RESOURCES FOR PARTY GAIN
In his official capacity as the Director General for BiH’s Intelligence Security Agency, BiH national Osman “Osmica” Mehmedagic (Mehmedagic) misused a state-owned telecommunications company for the benefit of the Party of Democratic Action (SDA), one of BiH’s largest political parties. Mehmedagic used state-owned telecommunications company BH Telecom to collect cellular activity on BiH politicians not affiliated with the SDA. Mehmedagic also instructed an individual to monitor a government official affiliated with a Republika Srpska (RS) entity opposition party.
Additionally, Mehmedagic has used his position, threats, and connections to sway candidates from “Osmorka” (“Eight”), a group of Bosniak and civic parties from BiH, to support the SDA. There is also credible information that Mehmedagic has collaborated with criminal networks to enrich himself and his political party.
OFAC today is designating Mehmedagic pursuant to E.O. 14033 for being complicit in, or having directly or indirectly engaged in, corruption related to the Western Balkans, including corruption by, on behalf of, or otherwise related to a government in the Western Balkans, or a current or former government official at any level of government in the Western Balkans, such as the misappropriation of public assets, expropriation of private assets for personal gain or political purposes, or bribery.
As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person. In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action.
