The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) published an evaluation report urging Bosnia and Herzegovina to strengthen its anti-money laundering and counter-terrorist financing (AML/CFT) framework. The assessment found moderate effectiveness in nine of 11 areas, including risk understanding, international cooperation, use of intelligence, and money laundering and terrorist financing investigations, but concluded that major improvements are still needed. Priority gaps include fundamental improvements in implementing United Nations financial sanctions and in identifying and mitigating terrorist financing risks in the non-profit sector. Money laundering investigations have resulted in convictions but only partially match the country’s risk profile, while confiscation requires major enhancement. Terrorist financing prosecutions and convictions are not aligned with the risk profile, and risk understanding has limitations. Banks show good ML/TF risk understanding and adequate customer due diligence, but notaries and other designated non-financial businesses and professions lag in applying enhanced controls for politically exposed persons. Banking supervisors demonstrate comprehensive understanding of ML risk, whereas most other sectors remain at an early stage in risk identification and assessment; efforts to prevent misuse of legal persons are constrained by insufficient state-level coordination. International cooperation is generally strong, but law enforcement is not proactive in seeking police cooperation on TF risks. MONEYVAL placed Bosnia and Herzegovina under its enhanced follow-up procedure and asked the country to report back in December 2026.

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