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US sanctions former Bosnia and Herzegovina officials and related entity under OFAC and Section 7031(c) authorities

OFAC today added the following entity:

ALTERNATIVNA TELEVIZIJA D.O.O. BANJA LUKA (a.k.a. ALTERNATIVNA TELEVIZIJA DRUSTVO ZA INFORMISANJE D.O.O. BANJA LUKA; a.k.a. ALTERNATIVNE TELEVIZIJE; a.k.a. "ALTERNATIVE TV"; a.k.a. "ATV"), Ulica Gunduliceva 33, Banja Luka 78000, Bosnia and Herzegovina; Organization Established Date 1997; Tax ID No. 4400946870008 (Bosnia and Herzegovina); Registration Number 1-9857-00 (Bosnia and Herzegovina) [BALKANS-EO14033] (Linked To: DODIK, Milorad). 

under its Balkans-related sanctions program, and updated the following existing individual listing:

DODIK, Milorad, Republika Srpska, Bosnia and Herzegovina; DOB 12 Mar 1959; Gender Male (individual) [BALKANS]. -to- DODIK, Milorad, Republika Srpska, Bosnia and Herzegovina; DOB 12 Mar 1959; POB Banja Luka, Bosnia and Herzegovina; nationality Bosnia and Herzegovina; Gender Male (individual) [BALKANS] [BALKANS-EO14033]. 

And Treasury:

PRESS RELEASES

Treasury Sanctions Milorad Dodik and Associated Media Platform for Destabilizing and Corrupt Activity

January 5, 2022

Dodik’s Destabilizing and Corrupt Activities Undermine 26 years of Progress Since the Dayton Peace Accords

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Milorad Dodik (Dodik), who is a member of the Presidency of Bosnia and Herzegovina (BiH), as well as one entity under his control, Alternativna Televizija d.o.o. Banja Luka, in response to Dodik’s corrupt activities and continued threats to the stability and territorial integrity of BiH.

Today’s action, the first designations under E.O. 14033, builds on the Biden Administration’s commitment to promote accountability for those who, among other things, undermine the stability of the Western Balkans region through corruption and threats to long-standing peace agreements. Dodik has undermined BiH institutions by calling for the seizure of state competencies and setting in motion the creation of parallel institutions in BiH’s Republika Srpska (RS) entity. Furthermore, Dodik has used his official BiH position to accumulate personal wealth through graft, bribery, and other forms of corruption. His divisive ethno-nationalistic rhetoric reflects his efforts to advance these political goals and distract attention from his corrupt activities. Cumulatively, these actions threaten the stability, sovereignty, and territorial integrity of BiH and undermine the Dayton Peace Accords, thereby risking wider regional instability.

“Milorad Dodik’s destabilizing corrupt activities and attempts to dismantle the Dayton Peace Accords, motivated by his own self-interest, threaten the stability of Bosnia and Herzegovina and the entire region,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States will not hesitate to act against those who pursue corruption, destabilization, and division at the expense of their own people, as well as against those who enable and facilitate this behavior.”

DODIK’S DESTABILIZING AND CORRUPT ACTIVITIES

The Dayton Peace Accords (DPA), signed by the Presidents of Bosnia and Herzegovina, Croatia, and Serbia in 1995, brought an end to ethnic conflict in BiH and established the present-day constitution of BiH. Treasury previously designated Dodik on January 17, 2017, pursuant to E.O. 13304, for having actively obstructed or posed a significant risk of actively obstructing the DPA. Today’s actions build on this legacy by targeting his ongoing destabilizing activity with respect to the DPA, as well as his abuse of his official position to engage in widespread corruption, which undermines state institutions in BiH.

Dodik has also openly called for, and has taken action toward, the unilateral transfer of state competencies from the BiH government to the Republika Srpska (RS), one of two entities that comprise BiH along with the Brcko District. Dodik has also publicly opposed the internationally appointed High Representative for BiH and the composition of the BiH Constitutional Court. Additionally, Dodik has publicly denigrated other ethnic and religious groups within BiH, further sowing division and political gridlock. Dodik, therefore, is being designated pursuant to E.O. 14033 for being responsible for or complicit in, or having directly or indirectly engaged in, a violation of, or an act that has obstructed or threatened the implementation of, the DPA.

Dodik is also being designated pursuant to E.O. 14033 for being responsible for or complicit in, or having directly or indirectly engaged in, corruption related to the Western Balkans. Specifically, he has established a patronage network in BiH from which he and his associates benefit. As one example of his corrupt actions, Dodik has provided government contracts and monopolies in the RS directly to close business associates. With his corrupt proceeds, Dodik has engaged in bribery and additional corrupt activities to further his personal interests at the expense of citizens in the RS.

DODIK’S PERSONAL MEDIA STATION

Alternativna Televizija d.o.o. Banja Luka (ATV), a media outlet based in Banja Luka, RS, is privately owned by a company closely linked to Dodik’s family. However, Dodik himself exerts personal control over ATV behind the scenes, such as by requiring personal approval on media stories related to politically sensitive topics. Dodik acquired ATV to deliberately and expressly further his own agenda, which includes his efforts to denigrate other political figures, burnish his public image, and advance his own personal and political goals.

Dodik has awarded ATV-related contracts directly to members of his family, which he has used as yet another avenue for corruption. He has funneled money directly from public companies to ATV for corrupt purposes. Dodik has substantially increased funding for ATV in recent years and engaged in malign social media influence campaigns through ATV to publish content that advances his political and personal goals.

ATV is being designated pursuant to E.O. 14033 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Dodik.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the individual and entity above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are generally prohibited. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person.

and State:

U.S. Government Takes Action Against Current and Former Bosnia and Herzegovina Officials Due to Involvement in Significant Corruption and Destabilizing Activities

PRESS STATEMENT

ANTONY J. BLINKEN, SECRETARY OF STATE

JANUARY 5, 2022Share

The Department of State is publicly designating former Bosnia and Herzegovina (BiH) High Judicial and Prosecutorial Council (HJPC) President Milan Tegeltija and the President of the Movement for Democratic Action (PDA) and Parliamentary Assembly Representative Mirsad Kukic due to their involvement in significant corruption.  These designations render Tegeltija and Kukic ineligible for entry into the United States.  Their actions undermined the rule of law, the public’s faith in their government’s democratic institutions and public processes, and peace and prosperity for BiH’s citizens. The designations of Kukic and Tegeltija are made under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2021.

In his official capacity as HJPC President, Tegeltija was involved in corrupt acts that included using his political influence and official power for his personal benefit.  Specifically, there is credible information that Tegeltija used his position to solicit a benefit in return for interfering in a judicial process as well as manipulating judicial appointments and other public employment.

In his official capacity as a manager of the publicly owned Banovici mine and as a Parliamentary Assembly Representative, Kukic was involved in corrupt acts that used his political influence and official power for his personal benefit.  Specifically, there is credible information Kukic misappropriated public funds for personal benefit and interfered in hiring and appointment decisions to benefit himself politically.

In addition to Tegeltija and Kukic, the Department of State is designating Tegeltija’s spouse, Tijana Tegeltija, pursuant to Section 7031(c).  This action also renders her ineligible for entry into the United States.

In addition, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed economic sanctions pursuant to Executive Order (E.O.) 14033 on Milorad Dodik (Dodik), a member of the BiH Presidency, and the designation of a media outlet under his control, Alternativna Televizija (ATV).  As a result of today’s action under E.O. 14033, all property and interests in property of those sanctioned that are in or come within the United States or that are in the possession or control of U.S. persons must be blocked and reported to OFAC.

Together, these designations reaffirm the U.S. commitment to the sovereignty and territorial integrity of BiH, the rule of law and democratic institutions, and a better future for BiH’s citizens. Other leaders and entities linked to corrupt or destabilizing actors may also be subject to future actions by the U.S. Government. We will continue to use appropriate authorities to promote accountability for actors across the region and globally.

issued press releases about the designation, as well as additional Section 7031(c) designations .

Links:

OFAC Notice

Press Releases – State, Treasury

Categories: Balkans Sanctions OFAC Updates Sanctions Lists Section 7031(c) Anti-Corruption/Human Rights Designations State Department Updates

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