The Central Bank of Bosnia and Herzegovina, the Deposit Insurance Agency of Bosnia and Herzegovina, the Banking Agency of the Federation of Bosnia and Herzegovina and the Banking Agency of the Republika Srpska issued a joint statement after Bosnia and Herzegovina was placed under increased monitoring for anti-money laundering and counterterrorist financing. They said the country’s financial sector remains stable, liquid, adequately capitalized and safe, and stressed that the decision relates to the broader institutional and legislative framework rather than weaknesses originating in financial institutions, particularly banks. The statement says banks continue to operate under strict regulatory requirements and ongoing supervision, with controls covering customer identification, transaction monitoring, risk assessment, reporting and prevention of misuse of the financial system. It adds that payment systems continue to function smoothly, the currency board framework is maintaining monetary stability, the convertible mark remains firmly pegged to the euro, and the deposit insurance system continues to protect deposits of individuals and legal entities under existing rules. At the same time, the authorities acknowledged likely practical effects from the Gray List designation, including additional checks on international transactions, tighter requirements from foreign and correspondent banks, longer processing times for some cross-border payments, and higher administrative and operating costs for firms and citizens dealing abroad. The joint statement says addressing the Gray List decision requires coordinated action by competent institutions at all levels of government. The four authorities said they will continue to act in a coordinated manner to preserve financial stability and protect citizens and the economy.
Central Bank of Bosnia and Herzegovina2026-06-19
Central Bank of Bosnia and Herzegovina and other financial authorities say Gray List placement may slow cross-border transactions but does not undermine domestic financial stability
Bosnia and Herzegovina’s central bank and other financial authorities said the country’s Gray List placement relates to the wider AML and CFT framework, not to failings in the banking sector, and does not threaten domestic financial stability. They said banks remain liquid and well capitalized, payment and deposit insurance systems are functioning normally, and the convertible mark remains pegged to the euro. The authorities also warned that the designation could bring extra scrutiny of international payments, longer processing times and higher costs.