Under the indictment, in 1993 Maktouf helped members of the El-Moujahid unit, which operated within the Army of Bosnia and Herzegovina, in the unlawful capturing of five Croats from the Travnik area in central Bosnia.
Maktouf was given the five-year prison sentence in July 2005.
The defence appealed the ruling and tried to contest it by subsequently calling a witness who claimed that Maktouf had not been involved in the abduction of the Travnik Croats.
In a retrial, the State Court dismissed the testimony as unfounded and confirmed the original judgment.
Appeals Chamber president Hilmo Vucinic said it had been proved without a doubt that the defendant had been involved in the abduction of unarmed civilians who were subsequently exchanged as hostages with the Croat side for captured Mujahedeen.