Central Bank of BiH supports IMF demands

(Patria) - The Central Bank of Bosnia and Herzegovina (CBBH) supports the reforms contained in the Letter of Intent related to the financial sector, particularly the upgrade of the existing Single Account Register to include accounts of natural persons in Bosnia and Herzegovina. All of the above is aimed at strengthening financial stability and fulfilling the objective of the arrangement with the International Monetary Fund (IMF), i.e., improving the framework for preventing money laundering/combating the financing of terrorism, the institution announced.

The economic space of Bosnia and Herzegovina is unified, and banks, natural and legal persons operate and conduct financial transactions throughout Bosnia and Herzegovina, without any restrictions. Precisely to reduce the possibility of illegal transactions, the upgrade of the Single Account Register at the level of Bosnia and Herzegovina is of exceptional importance. This does not limit the possibility and right to maintain entity registers, nor does it transfer any jurisdiction in this manner.

We note that the CBBH is an institution of Bosnia and Herzegovina defined by the Constitution, whose legal objective is, in addition to ensuring currency stability, to support and maintain payment and settlement systems in Bosnia and Herzegovina, as well as to take actions to assist in the fight against money laundering and the financing of terrorism.

The legal basis for maintaining the register of accounts of legal and natural persons is absolutely unquestionable, and the CBBH has had a Single Register of Business Entity Accounts and a Central Register of Loans of Business Entities and Natural Persons for many years. By upgrading the register to include accounts of natural persons, this process would be completed, thereby significantly facilitating the work of all participants in the financial sector, especially banks, and indirectly citizens in Bosnia and Herzegovina.

We do not see how the upgrade of the Single Register harms anyone in Bosnia and Herzegovina.

Given the above, the CBBH remains consistent in its efforts to fulfill all its legal and strategic objectives, while continuously preserving monetary and financial stability in the country.

The Governor of the CBBH fully supports the IMF's demands aimed at strengthening financial stability in Bosnia and Herzegovina, and will only agree to sign the Letter of Intent to the IMF under the condition of fulfilling all demands related to the financial sector, it was concluded.