Central Bank: Bosnia and Herzegovina's financial sector remains stable, secure and resilient

(Patria) - Following the decision to place Bosnia and Herzegovina on the list of jurisdictions under increased supervision in the area of preventing money laundering and terrorist financing (the so-called grey list), the Central Bank (CB) of Bosnia and Herzegovina, the Deposit Insurance Agency of Bosnia and Herzegovina, and the banking agencies of the Federation of Bosnia and Herzegovina and the Republika Srpska jointly state that the country's financial sector remains stable, liquid, adequately capitalised and secure.

https://nap.ba/post/bih-ponovo-na-sivoj-listi-fatf-a

BiH ponovo na sivoj listi FATF-a

Radna grupa za finansijsku akciju (FATF) objavila je danas ažuriranu listu jurisdikcija pod pojačanim nadzorom, na kojoj se, uz niz drugih država, ponovo našla i Bosna i Hercegovina.

"The decision to place Bosnia and Herzegovina on the grey list pertains to the broader institutional and legislative framework in the area of preventing money laundering and terrorist financing and requires coordinated action by competent institutions at all levels of government.

Financial institutions, and especially the banking sector, are not the cause of the circumstances that led to this decision, as this is a segment of the system of Bosnia and Herzegovina that operates in accordance with strict regulatory requirements.

The banking sector is liquid and adequately capitalised, and operates according to strictly regulated procedures and under continuous supervision of the competent banking agencies.

Banks apply demanding procedures for client identification, transaction monitoring, risk assessment, reporting to competent authorities and preventing abuse of the financial system.

In doing so, they continuously confirm compliance with current regulatory requirements and international standards in the area of preventing money laundering and terrorist financing.

Payment systems function smoothly, and monetary stability is successfully maintained through the currency board arrangement," it was published on the CBBiH website.

The convertible mark, it is added, remains stable and firmly pegged to the euro at a fixed exchange rate.

"In the circumstances arising from the placement of Bosnia and Herzegovina on the grey list, the deposit insurance system continues to function smoothly and protect deposits of natural and legal persons in banks in accordance with current regulations.

At the same time, it is important to objectively consider the possible consequences of placing Bosnia and Herzegovina on the grey list. Although the financial sector is not the cause of the circumstances that led to this decision, it could be among the sectors that will feel its practical effects the most.

This may primarily be reflected in additional checks on international transactions, increased demands from foreign and correspondent banks, longer processing times for certain cross-border payments, and increased administrative and operational costs.

Such circumstances may affect businesses and citizens who operate or conduct transactions abroad, but do not call into question the stability of the domestic financial system.

The Central Bank of Bosnia and Herzegovina, the Deposit Insurance Agency of Bosnia and Herzegovina, the Banking Agency of the Federation of Bosnia and Herzegovina and the Banking Agency of the Republika Srpska continue to act in a coordinated and responsible manner, with the aim of preserving financial stability, protecting citizens and the economy, and strengthening confidence in the financial system of Bosnia and Herzegovina," the CBBiH statement highlights.