The Council of Europe’s anti-money laundering body, MONEYVAL, published an evaluation report on Bosnia and Herzegovina’s measures to combat money laundering and terrorist financing, finding only moderate effectiveness in nine of 11 assessed areas and calling for major improvements. On the basis of the results, MONEYVAL decided to apply its enhanced follow-up procedure. The assessment points to moderate effectiveness in areas including risk understanding, international cooperation, use of intelligence, and money laundering and terrorist financing investigations, but identifies major shortcomings in how United Nations financial sanctions are applied and in identifying and mitigating terrorist financing risks in the non-profit sector. While money laundering investigations have resulted in convictions, they only partially align with the country’s risk profile and confiscation efforts need major enhancement; terrorist financing prosecutions and convictions are also not in line with the risk profile, alongside limitations in understanding the risks. International cooperation is generally good, but law enforcement agencies are not proactive in seeking police cooperation related to terrorist financing risks. MONEYVAL invited Bosnia and Herzegovina to report back in December 2026.