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.
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.
