In a few weeks, the one-year observation period of the Financial Action Task Force against Money Laundering (FATF) will expire, and if the authorities in Bosnia and Herzegovina do not react, BiH will be on the Moneyvala gray list.
This was warned by the Delegation of the European Union in Bosnia and Herzegovina, which stated that putting it on the list formally called “the list of jurisdictions under increased FATF supervision” would have serious consequences for our country.
Bearing in mind that BiH is a country with a large number of citizens who live outside the borders of their country, the biggest consequence would certainly be difficult and slowed down transactions going from BiH to other countries and vice versa.
If they were on the Moneyvala gray list, every transaction where money enters or leaves BiH would be under greater surveillance, which would significantly increase the waiting period for that transaction to be realized.
This is particularly important due to the fact that Bosnia and Herzegovina was on the way to becoming part of the Single Euro Payment Area (SEPA), which would significantly speed up these transactions.
Likewise, domestic financial institutions would potentially be overwhelmed with requests for additional documentation, bearing in mind that every transaction would automatically be more “suspicious” than it is when the country is not on the Moneyvala gray list.
Such a move by the FATF would have a particularly significant impact on the economy in Bosnia and Herzegovina, primarily through investments.
Investors who decide where to invest their capital take into account many factors, one of which is certainly whether the country is on the Moneyvala gray list. In this context, as a country that is constantly looking for additional investments from abroad, returning to the gray list would be a huge step back for Bosnia and Herzegovina.
In addition, institutions that want to borrow on foreign markets would have to do so with less favorable interest rates, which would also have a direct impact on the financial situation within BiH.
A direct impact could be felt through increased controls on goods exported from Bosnia and Herzegovina and imported into our country, as well as through the fact that obtaining foreign loans and international aid could be significantly more difficult.
What must BiH do
Putting BiH on the gray list would also have a negative impact on the international image of our country, which is certainly additionally shaken by the internal political problems that are omnipresent in BiH.
In order to avoid this scenario, the BiH authorities must adopt two laws in the next few weeks: the Law on Confiscation and Management of Assets, and the Law on Targeted Financial Sanctions for Terrorism, Terrorist Financing and the Proliferation of Weapons of Mass Destruction.
In addition, the establishment of a register of real owners of legal entities in Bosnia and Herzegovina is imposed as a condition.
Now all the power to avoid this “gray scenario” rests with the authorities in BiH, which should prepare and send these two important laws to the parliamentary procedure as soon as possible, in order to avoid catastrophic consequences for the economy of our country, he writes. Klix.
