Bosnian Serb Chief Blocks Money Laundering Laws

Republika Srpska President Milorad Dodik has told Serbian delegates to the Bosnian Parliament not to vote to adopt laws on money laundering and financing terrorism, as he believes the issue should be come under the jurisdiction of Bosnia's entities.

The Council of Europe's expert committee on money-laundering, Moneyval, on June 1 warned financial institutions to take precautions when conducting financial transactions with Bosnia.

This is because Bosnia's parliament has failed to adopt laws on combatting money laundering and financing terrorism.

Some Bosnian politicians hoped the laws could be adopted on June 6. However, Dodik announced on Tuesday that delegates from his Alliance of Independent Social Democrats, SNSD, would not vote for the laws on the grounds that such laws should come under the jurisdiction of the two entities.

“The country cannot be centralized with threats,”the Bosnian Serb leader said, “It is obvious that someone is trying to impose a story about alleged black lists.”

Financial transactions into and out of the country are now expected to become more complicated and will be more closely scrutinized for potential wrongdoing.

In the worst-case scenario, the country could be put on a list of problem countries alongside Iran, North Korea, Pakistan and Syria.

The legal changes have already been backed by the Bosnian government and by parliament's House of Representatives - but not by the other chamber, the House of Peoples.