The Financial Action Task Force (FATF) has included Bosnia and Herzegovina in its list of jurisdictions under increased monitoring, commonly known as the “grey list.”
According to the FATF, jurisdictions placed under increased monitoring have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.
These countries have committed to addressing the identified shortcomings within agreed timeframes and are working with the FATF and relevant regional bodies to implement their action plans.
FATF President Elisa de Anda Madrazo stated that Bosnia and Herzegovina needs to strengthen the protection of its financial system from abuse by criminals and terrorists and ensure more effective supervision of the banking sector.
Placement on the grey list does not impose sanctions or prohibit financial transactions. However, it typically results in heightened scrutiny by banks and financial institutions worldwide.
Counterparties may apply enhanced due diligence measures to payments, account openings, company onboarding, and business relationships involving entities from listed jurisdictions.
Bosnia and Herzegovina is an integral part of the Western Balkan economic space, with close ties to neighbouring countries through banking, trade, remittances, transport, construction, and small business activities.
Businesses engaged in cross-border operations with the country are advised to maintain well-documented transactions, verify the legitimacy of goods and services, and ensure proper contractual arrangements, particularly in sectors such as finance, trade, real estate, logistics, import-export, and companies with complex ownership structures.