According to *The Serbian Economist*, the Financial Action Task Force (FATF) has included Bosnia and Herzegovina on the list of jurisdictions subject to enhanced monitoring — the so-called ‘grey list’.
At the same time, Iraq has also been added to the ‘grey list’.
According to the FATF, countries on the ‘grey 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 timeframes.
FATF President Elisú de Anda Madrazo stated that Bosnia and Herzegovina needs to strengthen the protection of its financial system against exploitation by criminals and terrorists, as well as ensure more effective supervision of the banking sector.
This is a significant signal for the region. Bosnia and Herzegovina remains part of the Western Balkan economic area, which is closely linked to Serbia, Croatia, Montenegro and EU countries through banking, trade, remittances from the diaspora, transport, construction and small businesses.
Being placed on the ‘grey list’ does not imply sanctions or a ban on transactions, but it usually leads to stricter compliance with requirements on the part of banks and financial institutions. International payments, opening accounts, corporate banking services, transfers and agreements with counterparties from such a jurisdiction may be subject to additional checks.
This is important for Serbia for two reasons. Firstly, Bosnia and Herzegovina is a neighbouring market and a key destination for regional trade. Secondly, Serbian banks, companies and exporters working with partners in BiH may face more detailed enquiries regarding the origin of funds, ownership structure, beneficial owners and the purpose of payments.
From a practical business perspective, companies trading with Bosnia and Herzegovina should prepare transaction documentation in advance, verify the authenticity of goods and services supplied, and ensure contracts and payment terms are correctly drawn up. This applies in particular to financial services, trade, property, logistics, import-export and companies with complex ownership structures.
Note: The current FATF ‘grey list’, as at 19 June 2026, 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.