BiH: Central Bank supports reforms opposed by Republika Srpska

BiH: Central Bank supports reforms opposed by Republika Srpska

The Central Bank of Bosnia and Herzegovina (CBBH) supports the reforms outlined in the Letter of Intent related to the financial sector, in particular the upgrade of the existing Single Registry of Accounts that would include the accounts of citizens in Bosnia and Herzegovina. Everything that was mentioned is aimed at strengthening financial stability and fulfilling the goal of the IMF arrangement, that is, improving the framework for preventing money laundering/combating terrorist financing.

The reforms referred to in the Letter of Intent represent a major stumbling block in concluding Bosnia and Herzegovina’s arrangement with the International Monetary Fund. Republika Srpska officials believe that these reforms imply the transfer of competencies from the entity to the state level and, as such, cannot be accepted.

The economic space of Bosnia and Herzegovina is a single space and banks, individuals and legal entities operate and perform financial transactions throughout Bosnia and Herzegovina, without any restrictions. According to the Bank, it is extremely important to upgrade the Single Registry of Accounts at the level of Bosnia and Herzegovina exactly to reduce the possibility of illegal transactions. This does not limit the possibility and right to keep the entity registries, nor does it transfer any competencies in this way.

It is underlined in the press release that the CBBH refers to an institution of Bosnia and Herzegovina defined by Constitution which, in addition to providing currency stability, is bestowed with the legal task to support and maintain payment and settlement systems in Bosnia and Herzegovina, as well as to implement actions to combat money laundering and terrorist financing.

„The legal basis for maintaining the Registry of Accounts of Legal Entities and Citizens is unquestionable and the CBBH has, for many years now, established Single Registry of Accounts of Business Entities and the Central Credit Registry of Legal Entities and Citizens. By upgrading the Registry to include the accounts of citizens, this process would be completed. With that, the work of all participants in the financial sector, especially banks and indirectly the citizens of Bosnia and Herzegovina, would become significantly easier.

We do not see how upgrading the Single Registry is to the detriment of anyone in Bosnia and Herzegovina,“ says CBBH.

Based on the aforementioned, the CBBH remains consistent in its efforts to fulfill all its legal and strategic goals, while continuously preserving monetary and financial stability in the country.

The Governor of the CBBH fully supports the IMF requirements aimed at strengthening financial stability in Bosnia and Herzegovina, and will only agree to sign the Letter of Intent with the IMF under the condition of fulfilling all requirements related to the financial sector. /ibna