BiH still on FATF grey list, but could be removed as early as September if authorities wish

Bosnia and Herzegovina is still on the grey list of the FATF (Financial Action Task Force), but if the authorities fulfill the obligations set before them by this international organization by May, Bosnia and Herzegovina could be removed from the list as early as September of this year.

FATF and MONEYVAL are key organizations that oversee and monitor the compliance of members and other jurisdictions in the field of combating money laundering and terrorist financing. Since Bosnia and Herzegovina has not fully aligned its obligations with these international organizations, FATF placed BiH on the grey list. This means that business transactions between banks in BiH and some banks abroad are slowed down and made more difficult. 

BiH authorities had a deadline until the end of 2016 to create a unified database of all non-governmental organizations in the country, and the authorities from the BiH entity Republika Srpska to align the entity's criminal code with the state criminal code, in order for the country to come within reach of being removed from the grey list. Since the state and entity authorities did not meet this deadline, FATF granted a new term. 

- A working meeting of the delegations of Bosnia and Herzegovina with FATF was held on January 26, 2017, where the degree of implementation of the FATF Action Plan for BiH was discussed. Although the final deadline for implementing the Action Plan was December 2016, and there were possible consequences for the "breach of deadline", the meeting passed in a positive atmosphere – was confirmed for Patria from the Ministry of Security of Bosnia and Herzegovina.

- FATF expressed interest primarily in possible dates for the adoption of the Criminal Code of the RS, and all other laws that need to be implemented in order to implement the Action Plan. It could be concluded that if the Criminal Code of the RS were adopted by May 2017, FATF would propose at its plenary session in June 2017 a visit to Bosnia and Herzegovina, which should take place before the September plenary meeting. Depending on the results of the visit, Bosnia and Herzegovina could be removed from the list in September 2017. For now, Bosnia and Herzegovina will retain the same status on the list - "light grey list" – a status it has held since the beginning of the implementation of the Action Plan (June 2015) - explain from the Ministry of Security of BiH.

In addition to the Criminal Code of the RS, BiH needs to establish a unified register of all associations and foundations operating in the territory of BiH. By May 2017, BiH also needs to adopt the Law on Amendments to the Criminal Code of the Brčko District of BiH, the Law on Insurance of the FBiH, the Law on Insurance of the RS, the Law on Insurance Representation and Mediation in Insurance and Reinsurance of the RS, the Law on the Securities Market of the BD BiH, and the Law on Amendments to the Law on Investment Funds of the BD BiH.

- It is important to note that the adoption of these laws is realistic and possible, given that all are in some adoption procedure before the competent parliament/assembly, except for the Law on Insurance of the RS – explain for Patria from the Ministry of Security of BiH.

The next Plenary session of FATF will be held from February 19 to 24, 2017.