US Embassy warns investors about challenges in BiH: Check property ownership, judicial corruption, secessionists in RS

(Patria) - The US Embassy in BiH has published a State Department report on economic opportunities and challenges in BiH, in which the word corruption is mentioned as many as 49 times, especially in the BiH judiciary. This is a signal to investors about what kind of country this is. Read the full State Department report HERE

As stated by the Embassy, potential investors want to know where their money is going when they plan an investment.

"The 2024 Investment Climate Statement for BiH urges them to conduct rigorous due diligence before investing in Bosnia and Herzegovina. This includes avoiding exposure to U.S. sanctions and confirming land ownership rights to avoid entanglement in potentially illegal and/or unconstitutional arrangements.

This is particularly important in Republika Srpska, where secessionist actions by leaders, attempts to unconstitutionally seize control of state property, and non-enforcement of the High Representative's decisions create legal risks that further complicate the business environment.

Potential investors should seek informed legal counsel to advise on the implications of the BiH Constitutional Court's July 2024 decisions, which in two high-profile cases ruled that entities are not competent to dispose of state property in any way, including ownership, leasehold, concession, or temporary use. The Court also clearly stated that any repurposing of state property qualifies as disposal, which is expressly prohibited," the Embassy stated.