According to “Serbian Economist,” the Financial Action Task Force (FATF) has added Bosnia and Herzegovina to the list of jurisdictions under enhanced monitoring—the so-called “gray list.”
At the same time, Iraq was also added to the “gray list.”
According to the FATF, countries on the “gray list” have strategic deficiencies in their systems for combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, but are committed to addressing these issues within agreed-upon timeframes.
FATF President Elisu de Anda Madrazo stated that Bosnia and Herzegovina must strengthen the protection of its financial system against exploitation by criminals and terrorists, as well as ensure more effective oversight of the banking sector.
This is a significant signal for the region. Bosnia and Herzegovina remains part of the Western Balkan economic space, closely linked to Serbia, Croatia, Montenegro, and EU countries through banking, trade, remittances from the diaspora, transportation, construction, and small businesses.
Being placed on the “gray list” does not imply sanctions or a ban on transactions, but it typically leads to stricter compliance requirements on the part of banks and financial institutions. International payments, opening accounts, servicing companies, transfers, and transactions with counterparties from such a jurisdiction may be subject to additional checks.
This is important for Serbia for two reasons. First, Bosnia and Herzegovina is a neighboring market and a key destination for regional trade. Second, Serbian banks, companies, and exporters working with partners in Bosnia and Herzegovina may face more detailed inquiries regarding the origin of funds, ownership structure, beneficial owners, and the purpose of payments.
From a practical standpoint, businesses working with Bosnia and Herzegovina should prepare transaction documents in advance, verify the authenticity of goods and services, and properly draft contracts and payment justifications. This applies particularly to financial services, trade, real estate, logistics, import-export, and companies with complex ownership structures.
For reference: as of June 19, 2026, the current FATF “gray list” includes Angola, Bolivia, Bosnia and Herzegovina, Bulgaria, Cameroon, Côte d’Ivoire, the Democratic Republic of the Congo, Haiti, Iraq, Kenya, Kuwait, Laos, Lebanon, Monaco, Nepal, Papua New Guinea, South Sudan, Syria, Venezuela, Vietnam, the British Virgin Islands, and Yemen.
The FATF blacklist—that is, the list of high-risk jurisdictions for which the FATF calls for enhanced measures or countermeasures—includes North Korea, Iran, and Myanmar.
Bosnia and Herzegovina, COMPLIANCE, FATF, financial monitoring, SERBIA
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