The Council of Europe’s anti-money laundering body, MONEYVAL, has released a report urging Bosnia and Herzegovina (BiH) to improve its measures to combat money laundering (ML) and terrorist financing (TF). The assessment highlights moderate effectiveness in nine of eleven areas, including risk understanding, international cooperation, use of intelligence and ML/TF investigations. However, major improvements are needed in these areas.

The report underscores the need for fundamental improvements in applying UN financial sanctions, and in identifying and mitigating TF risks in the non-profit sector.

While ML investigations have led to convictions, they only partially align with the country’s risk profile, and confiscation efforts require major enhancement. TF prosecutions and convictions are not in line with risk profile, and there are limitations in understanding of the risks.

Banks demonstrate a good ML/TF risk understanding and adequate customer due diligence (CDD), but sectors, such as notaries and other designated non-financial businesses and professions, lag in applying enhanced controls to politically exposed persons. Banking supervisors have a comprehensive understanding of ML risk, but in most other sectors, the concept of risk identification and assessment is still nascent. Measures to prevent misuse of legal persons are hindered by insufficient state-level coordination.

International cooperation is generally good, but law enforcement agencies are not proactive in seeking police cooperation in respect of TF risks.

Based on the results of its evaluation, MONEYVAL decided to apply its enhanced follow-up procedure and invited BiH to report back in December 2026.

Read more:

 Fifth round mutual evaluation report on anti-money laundering and counter-terrorist financing measures in Bosnia and Herzegovina (December 2024)

 EXECUTIVE SUMMARY of the Fifth Round Mutual Evaluation Report

 All MONEYVAL evaluation reports on Bosnia and Herzegovina

  Action against corruption, money laundering and terrorist financing in Bosnia and Herzegovina

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) is a monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction, as well as the effectiveness of their implementation.

The Council of Europe is implementing the Action against corruption, money laundering, and terrorism financing in Bosnia and Herzegovina which aims to bolster confidence in the rule of law and democracy through prevention and control of economic crime in line with European standards. The project is funded under the Council of Europe and European Union’s joint programme “Horizontal Facility for the Western Balkans and Türkiye” and through voluntary contributions from the Council of Europe.