Bosnia and Herzegovina placed on FATF grey list

The Financial Action Task Force (FATF) has added Bosnia and Herzegovina to its grey list of jurisdictions under heightened monitoring, confirming a recommendation from the European Moneyval body. The decision was announced following the FATF plenary in Paris and reflects the country's failure to meet key anti‑money‑laundering and counter‑terrorist financing standards.

Key deficiencies cited include the absence of a beneficial‑ownership register in the Federation of Bosnia and Herzegovina and the lack of legislation governing state‑seized assets and international legal assistance. Bosnia received an action plan with 13 specific recommendations that authorities say will take two to two‑and‑a‑half years to implement.

The government has signed a political letter committing to the plan, and officials warned that without reforms the country could face higher transaction costs, reduced foreign investment and a possible downgrade of its credit rating. The Federation’s Banking Agency stressed that the grey‑list status does not threaten the stability of the banking system, which it describes as well‑regulated. Foreign‑minister Elmedin Konaković said the move is a warning to domestic politicians and urged swift action to avoid a future black‑list designation.