Remittances from abroad will be delayed, investments blocked

MPs from Republika Srpska in the Joint Commission for Defence and Security blocked the Law on Prevention of Money Laundering and Terrorist Financing. Bosnia and Herzegovina now expects sanctions, and experts warn that this development is extremely unfavorable for the economy.

The Delegation of the European Union and the Office of the EU Special Representative in BiH are disappointed with the failure to adopt the Bill on Prevention of Money Laundering and Terrorist Financing.

- The Bill is harmonized with the leading international instruments in this area, especially with the 40+9 Recommendations of the Financial Action Task Force (FATF) and the Third EU Directive. The failure to adopt this law means that BiH has missed the opportunity to improve its anti-money laundering system and to fulfill its international obligations undertaken towards MONEYVAL. The next MONEYVAL meeting will be held in April this year, when this failure to adopt should be considered at the plenary session and action taken accordingly – they told the Patria news agency from the EU Delegation in BiH.

They further noted that failure to adapt the anti-money laundering system to international standards could result in BiH being placed under strong financial pressure.

- Banks and other financial institutions in BiH could face difficulties when sending money around the world. Money transfers to and from BiH would be closely monitored by financial institutions in other countries, and this could lead to serious delays in money transfers – added the Delegation.

Thus, for example, as they explain, remittances from abroad would be delayed. Likewise, due to possible delays, potential investors could look for other locations for investment.

- Others would not even consider the possibility of investing in BiH. It will recover from such a loss of reputation. The Delegation of the European Union and the Office of the EU Special Representative in BiH once again emphasizes the need to adopt the Law on Prevention of Money Laundering and Terrorist Financing as soon as possible – added the Delegation.