Barš: If the law passes on June 6, Bosnia and Herzegovina will avoid negative consequences

If the Law on Prevention of Money Laundering and Financing of Terrorism is adopted on June 6, i.e. on Friday, Bosnia and Herzegovina will avoid all negative consequences despite today's statement by Moneyval, said Zlatko Barš, director of the Banking Agency of the Federation of Bosnia and Herzegovina, for the Bosnian news agency Patria (NAP).

The Council of Europe's Committee for the Supervision of the Fight against Money Laundering and Financing of Terrorism issued a warning this morning that Bosnia and Herzegovina's legislation is not aligned with the standards of this institution. However, Barš says he believes the matter will be corrected as soon as the law is confirmed in the House of Peoples of Bosnia and Herzegovina.

- I do not believe that anything negative will happen nor will we feel any consequences in these few days. However, if the law is not adopted and if this drags on, then there will definitely be negative consequences – says Barš.

The Council of Europe sent the warning to financial institutions and states, especially banks. They are expected to strengthen controls. This, says Barš, would automatically increase risk and costs.

- The final consequence, if this situation drags on, could be an increase in interest rates. However, I believe that none of this will happen, because everyone knows that the banking system in Bosnia and Herzegovina is under the supervision and control of supervisors – says Barš.

Economic expert Zlatko Hurtić also confirms that greater control of financial transactions would mean higher costs. Bank transfers and state financing would be hit by sanctions, and transactions would be slowed down because greater security measures would be implemented.