Bosnia and Herzegovina Takes Important Step in Fight Against Terrorism and Avoiding 'Grey List'

(Patria) - By adopting the Draft Law on Restricting the Disposal of Assets to Prevent Terrorism, Financing of Terrorism, and Financing the Proliferation of Weapons of Mass Destruction, the Council of Ministers of Bosnia and Herzegovina has taken a significant step in strengthening the security and financial system of Bosnia and Herzegovina, as well as in fulfilling the state's international obligations.

The Ministry of Security of Bosnia and Herzegovina is the proposer of this important law, through which Bosnia and Herzegovina fulfills one of the key recommendations of MONEYVAL, particularly in the part related to the lack of an effective and legally sustainable system for implementing targeted financial sanctions.

This law establishes a clear and functional legal framework for the implementation of asset restriction measures, including clearly defined institutional competencies, oversight mechanisms, mandatory procedural actions, as well as appropriate sanctions in case of non-compliance with the prescribed measures.

The law is also necessary due to the obligations that arise for Bosnia and Herzegovina from its membership in the United Nations, i.e., the obligation to implement UN Security Council resolutions, which require member states to apply asset restriction measures against individuals and entities associated with terrorism, financing of terrorism, and the proliferation of weapons of mass destruction.

This law enables, for the first time, the full and operational implementation of these international obligations within the domestic legal system.

The Ministry of Security of Bosnia and Herzegovina expects the Parliamentary Assembly of Bosnia and Herzegovina to adopt this law by April 2026, in order for Bosnia and Herzegovina to avoid initiating the ICRG process of the Financial Action Task Force (FATF), i.e., the country being placed on the so-called grey list.

Such a scenario could have serious reputational, political, and financial consequences for Bosnia and Herzegovina.

By adopting this law, Bosnia and Herzegovina would demonstrate its readiness to fulfill international obligations in the fight against terrorism and financial crime, and further strengthen the stability and integrity of its financial system, it was announced from the Ministry of Security of Bosnia and Herzegovina.