BiH placed on FATF grey list

(Patria) - The Financial Action Task Force (FATF) today published an updated list of jurisdictions under increased monitoring, which, alongside a number of other countries, includes Bosnia and Herzegovina.

According to a FATF statement, this is the so-called grey list, which includes countries that have strategic deficiencies in their systems for preventing money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, but have committed to addressing these deficiencies within agreed deadlines and under increased monitoring.

The FATF notes that these jurisdictions are actively cooperating with international and regional bodies and regularly report on progress in implementing action plans.

It is emphasized that inclusion on the list does not automatically mean the application of enhanced due diligence measures, but rather the application of a risk-based approach.

It is also stressed that financial flows for humanitarian aid, the work of non-profit organizations, and remittances should not be unnecessarily disrupted, and that states should take into account international obligations, including UN Security Council resolutions.

For BiH, this represents a new step in the international oversight of the financial system, while authorities are expected to accelerate the implementation of measures from the action plan to address the identified deficiencies.

In addition to BiH, the updated list includes numerous other countries, among them Algeria, Angola, Bolivia, Bulgaria, Cameroon, Côte d'Ivoire, the Democratic Republic of the Congo, Haiti, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, South Sudan, Syria, Venezuela, Vietnam, the British Virgin Islands, and Yemen.

The FATF stated that it continuously monitors the progress of all jurisdictions and that new assessments and reports will be published in upcoming cycles, with the possibility of removing from the list those countries that fulfill their agreed commitments.

In June 2026, Bosnia and Herzegovina committed at a high political level to cooperate with the FATF and Moneyval to strengthen the effectiveness of its regime for preventing money laundering and terrorist financing.

Since the adoption of its Mutual Evaluation Report (MER) in December 2024, Bosnia and Herzegovina has made progress on recommended measures from its MER, including the development of a comprehensive strategy for preventing money laundering and terrorist financing, the development of guidelines for financial institutions and certain designated non-financial businesses and professions (DNFBPs) on obligations related to preventing money laundering and terrorist financing, and improving the exchange and use of financial intelligence.

Bosnia and Herzegovina will continue cooperation with the FATF on the implementation of its FATF action plan:

‣ by further deepening the understanding of money laundering and terrorist financing risks;

‣ by adopting policies for the systematic use of international cooperation;

‣ by strengthening the understanding of money laundering and terrorist financing risks by notarial supervisors, ensuring consistent supervision of certain non-financial businesses and professions in the area of anti-money laundering and countering the financing of terrorism (AML/CFT) and imposing proportionate, dissuasive, and effective sanctions on the banking sector;

‣ by ensuring the timely availability of accurate and up-to-date basic information and beneficial ownership information;

‣ by providing targeted feedback on the quality of suspicious transaction reports (STRs);

‣ by demonstrating an increase in money laundering investigations and prosecutions;

‣ by demonstrating that effective, proportionate, and dissuasive sanctions are applied for violations of specific cross-border cash reporting regimes;

‣ by demonstrating proactive action in terrorist financing cases and clarifying the interpretation of the criminal offense of terrorist financing; and

‣ by ensuring that its supervisors can apply the full range of effective, proportionate, and dissuasive sanctions for violations of obligations related to terrorist financing and the financing of proliferation, states the official FATF website.