House of Peoples of BiH Parliament at a Crossroads: Will BiH Avoid the FATF Grey List?

(Patria) - At tomorrow's emergency session of the House of Peoples of the BiH Parliament, there is only one item on the agenda: the request of the BiH Council of Ministers for the urgent procedure review of the Bill on Restricting the Disposal of Assets to Prevent Terrorism, Terrorism Financing, and the Financing of the Proliferation of Weapons of Mass Destruction.

The adoption of this Law is the only way for Bosnia and Herzegovina to fulfill its international obligations to the UN in the area of terrorism financing and the proliferation of weapons of mass destruction, and to implement key MONEYVAL recommendations, according to the explanation from the BiH Ministry of Security, which drafted this law.  

MONEYVAL is a Council of Europe body that assesses how effectively countries prevent money laundering, terrorism financing, and the financing of the proliferation of weapons of mass destruction, and the results of their evaluations directly affect a country's international reputation and economic position. In the evaluation process, it is most important for a country to have a clear legislative framework, functional institutions, and a system that allows for immediate action. In its latest report from 2024, MONEYVAL set a deadline for the BiH authorities to adopt the necessary laws.

If BiH ends up on the FATF grey list, it loses control over the pace of reforms, faces reputational and financial risks, and additional international measures that directly affect the financial sector.

As stated in the explanation provided to the delegates in the materials, this law is also necessary due to Bosnia and Herzegovina's international legal obligations to the United Nations and the European Union.

"BiH is obliged to implement UN Security Council resolutions adopted under Chapter 7 of the United Nations Charter, which are binding and require the prohibition of the disposal of assets of persons and entities associated with terrorism, terrorism financing, and the proliferation of weapons of mass destruction. The new law enables Bosnia and Herzegovina for the first time to consistently apply UN lists related to terrorism financing and the proliferation of weapons of mass destruction. The law also allows for the clear identification, blocking, and tracking of assets, and guarantees that international measures are implemented without delay," the explanation states.