Moneyval to decide on sanctions against BiH!

The plenary session of the Council of Europe's Committee of Experts on the Evaluation of Anti-Money Laundering and Counter-Terrorist Financing Measures - Moneyval began today in Strasbourg, and Bosnia and Herzegovina will also be on the agenda this week, Samir Omerhodžić, a member of the BiH delegation to this body, confirmed to the BiH news agency Patria (NAP).

Namely, Moneyval is expected to sanction our country due to the rejection of the Law on Prevention of Money Laundering and Terrorist Activities in the BiH Parliament a few weeks ago.

Omerhodžić, as he told us, has no details regarding this, but that the issue will certainly be on the agenda. The session lasts all week.

- We expect a final decision on Bosnia and Herzegovina on Friday. I cannot predict what the decision will be, but it is certain that there is dissatisfaction with the non-adoption of the law – Omerhodžić told NAP, adding that he does not know the date of the debate either.  

The European Union Delegation in Sarajevo also told us that the session has begun and that a statement on Bosnia and Herzegovina is expected. It has been known for some time that the EU requires the adoption of a new law that will bring international standards in the fight against money laundering to BiH.

However, MPs from Republika Srpska rejected this law, so BiH faces international sanctions and being placed on a blacklist along with Iran and North Korea. EU Delegation spokesperson Andy McGuffie previously stated that the non-adoption of the law would have serious consequences.

- BiH would not have an effective system for preventing money laundering and terrorist financing, and the state's obligations towards MONEYVAL and the IMF would be called into question. Furthermore, it is extremely important that BiH could face significant financial pressure, e.g., banks and other financial institutions in BiH would face difficulties in transferring money worldwide. All money transactions in and out of BiH would be closely monitored by financial institutions of other countries, which would lead to serious delays in money transactions. For example, remittances from abroad would be delayed. At the same time, due to delays in money transactions, potential investors would look for other destinations for investment. Others would not even consider the possibility of investing in BiH, and it is difficult to recover from such a blow to the country's reputation – McGuffie emphasized.