EU Office in BiH calls on the BiH House of Peoples to urgently adopt the Law on Prevention of Money Laundering and Financing of Terrorism

(Patria) - We call on the House of Peoples of the Parliamentary Assembly of BiH to schedule a session next week to adopt the Law on Prevention of Money Laundering and Financing of Terrorism. Only the final reading in the House of Peoples remains, states the call from the EU Office in BiH addressed to the House of Peoples of the BiH PA.

"The proposed Law is largely drafted in line with European standards and brings clear benefits for BiH citizens and businesses," they say from the Office.

As a reason why it is urgently necessary to schedule a session in the week of 12 to 16 February, they cite the fact that the MONEYVAL Committee of the Council of Europe is coming to Bosnia and Herzegovina on 12 February 2024, to assess whether BiH has achieved a satisfactory level of standards in the area of preventing money laundering and financing of terrorism.

"If the Draft Law does not enter into force before MONEYVAL completes its mission on 28 February, it will not be covered by the assessment, which significantly increases the risk that the Financial Action Task Force (FATF) will place Bosnia and Herzegovina on its grey list, thereby placing Bosnia and Herzegovina on the list of EU jurisdictions with strategic deficiencies in the system for preventing money laundering and financing of terrorism," the call states.

They add that being placed on lists would have political, economic and financial consequences for BiH, and would affect access to international financial markets and transactions, private commercial activities, as well as public fiscal operations, and could further deter foreign investment and hinder the international movement of capital.

"In addition, the Law on Prevention of Money Laundering and Financing of Terrorism has been repeatedly emphasized, including by President von der Leyen during her recent visit, as one of the priorities, along with other laws, that are needed before the European Council considers in March whether to give the green light to Bosnia and Herzegovina for opening accession negotiations. It is necessary for the authorities in BiH to show that their stated commitment to a future in the EU also includes a commitment to European standards. Time is of the essence," they conclude from the Office.