Bosnia and Herzegovina — Country Risk Report

Bosnia and Herzegovina (Europe • Southern Europe). Risk report as of the 19 Jun 2026 FATF plenary.

High country risk, with elevated corruption risk. Bosnia and Herzegovina's country risk score is 6.0/10, placing it in the high-risk band. The principal driver is weak corruption, alongside rule of law and institutions risk. Bosnia and Herzegovina is subject to FATF increased monitoring. Bosnia and Herzegovina is not subject to comprehensive country-wide sanctions. Firms should apply additional scrutiny where exposure involves state-linked entities, restricted sectors, sensitive technology, dual-use goods or politically exposed counterparties.

Recommended treatment

Enhanced due diligence.

At a glance

  • FATF status: Grey list (one indicator only; it does not set the overall country risk rating by itself)
  • Comprehensive country sanctions: none identified. Targeted sanctions exposure: programmes in place, screen applicable lists
  • Government effectiveness and rule of law: 5.3/10
  • Corruption (CPI 2025): 34/100, rank #109 of 182
  • Enforcement data: not yet assessed (no RegActions coverage)

Country Risk Score: 6.0/10 (High)

Higher score means higher country risk (global average 4.6). Full information available. Strong data coverage. Enforcement activity and CPI are shown for context but do not change the score.

All three parts of the score are available.

How this score was calculated

  • Financial crime controls: 6.4/10 — 50% of this score
  • Government effectiveness and rule of law: 5.3/10 — 30% of this score
  • International sanctions: 2.8/10 — 20% of this score
  • FATF grey-list status means the score cannot be lower than 6.0. This minimum set the final score.
Show the exact calculation

aml 6.4 × 50% + governance 5.3 × 30% + sanctions 2.8 × 20% = 5.4; fatf-grey floor 6 applied; final 6

Principal risk drivers

  • FATF increased-monitoring status
  • Targeted sanctions exposure
  • Corruption (WGI) — 6.3/10
  • Rule of law & institutions — 5.4/10
  • Voice & accountability — 5.0/10

Mitigating factors

  • No comprehensive country-wide sanctions programme.
  • Comparatively stronger political stability (4.3/10).
  • Risk is concentrated in specific counterparties, sectors and transactions rather than applying uniformly.

Business impact

  • Customer onboarding (High): Additional ownership and control verification may be required.
  • Payments and transactions (High): Review transaction purpose, counterparties and geographic routing.
  • Trade and export activity (High): Screen goods, end users and potential dual-use exposure.
  • Corporate clients (High): Assess state ownership, government links and political exposure.
  • Ongoing monitoring (High): Apply alerts for ownership changes, sanctions and geopolitical developments.

Recommended controls

  • Verify ultimate beneficial ownership using more than one reliable source.
  • Identify state ownership, government influence and politically exposed persons.
  • Screen entities, directors and beneficial owners against applicable sanctions lists.
  • Apply enhanced review to technology, defence, telecommunications, financial services and dual-use activity.
  • Document transaction purpose and source of funds where cross-border structures are complex.
  • Escalate unresolved ownership opacity or adverse information to Compliance.

Enhanced due diligence triggers

  • State ownership / control
  • PEP involvement
  • Sensitive / restricted sectors
  • Opaque ownership
  • Adverse media
  • Dual-use goods & technology
  • High-risk intermediary routing

FATF status: Grey list

Jurisdiction Under Increased Monitoring. Listed 19 Jun 2026. Added to increased monitoring at the June 2026 plenary. Last reviewed 19 Jun 2026; next FATF plenary Oct 2026.

Sanctions: Targeted

  • EU — targeted: Restrictive measures in view of the situation in Bosnia and Herzegovina (source)
  • UK — targeted: Bosnia and Herzegovina sanctions (source)

Source details

International sanctions by issuing body

  • UN: No
  • EU: Yes (Targeted)
  • UK: Yes (Targeted)
  • US: No

No means the complete UN, UK, EU and US review found no direct country-level programme. People or organisations may still appear on sanctions lists.

Government effectiveness and rule of law (World Bank 2024, percentile)

  • Government Effectiveness: 39/100
  • Regulatory Quality: 49/100
  • Rule of Law: 51/100

FATF status history

  • 19 Jun 2026: Added to the FATF grey list

Regulators and legal framework

FATF network

FATF network via MONEYVAL.

Last mutual evaluation: 2024 · report

National regulators

Regulator profiles not yet available on RegActions.

FIU: Egmont Group member (FID)

Framework signals

  • FATF listing: Grey list
  • International sanctions: targeted exposure
  • BO register: Restricted (live)
  • Corruption (CPI 2025): 34/100, rank #109 of 182
  • Rule of law (WGI): 5.4/10 risk

Sector exposure

  • Banking & payments (Elevated): FATF grey-list status elevates correspondent-banking risk
  • Trade & export controls (Elevated): Targeted sanctions require screening of listed counterparties
  • Crypto & virtual assets (Elevated): FATF grey-list VASP supervision gaps raise virtual-asset risk
  • Real estate & luxury assets (Elevated): Elevated corruption exposure (CPI 34/100)
  • State-linked & procurement (Elevated): State-capture exposure (corruption WGI 6.3/10)

Derived from sanctions tier, FATF listing, World Bank WGI governance and CPI; no per-sector dataset is asserted.

Bosnia and Herzegovina: analysis

Bosnia and Herzegovina combines a weak governance profile with FATF grey listing; the country was added to the FATF increased monitoring list at the June 2026 plenary. Corruption is the weakest domain at an elevated level, followed by voice and accountability and rule of law and institutions. Political stability is relatively better. No sanctions apply. The CPI reading is aligned with the elevated risk assessment.

Outlook

Bosnia and Herzegovina will remain under FATF increased monitoring until it addresses the identified strategic deficiencies. Progress is typically assessed at subsequent plenaries. Firms should apply enhanced due diligence for the duration of the grey-listing and monitor FATF progress reports closely. The next plenary is scheduled for October 2026, which represents the earliest opportunity for a formal status update.

Key watchpoints

  • Monitor FATF progress reports and plenary outcomes for updates on the grey-list status and any action plan milestones.
  • Apply enhanced due diligence to all transactions and relationships with a Bosnian and Herzegovinian nexus, as required under applicable AML frameworks.
  • Track domestic legislative and regulatory reforms aimed at addressing FATF-identified deficiencies.
  • Watch for any changes to sanctions exposure, which is currently nil but could shift given the regional context.

Assessment currency

  • FATF status: Increased monitoring (as of 19 Jun 2026)
  • Sanctions exposure: Targeted programmes in place (as of Jul 2026)
  • Governance (WGI): Latest dataset incorporated (as of 2024)
  • Corruption (CPI): 34/100 (as of 2025)
  • RegActions assessment: Reviewed (as of 19 Jun 2026)

Public evidence layer

FATF action: increased monitoring. FATF identifies the jurisdiction as under increased monitoring; apply the firm's risk-based controls and monitor remediation progress.

Contextual signals (not scored)

  • FATF network membership: FATF regional network: MONEYVAL (present, as of 2026-07)
  • EU non-cooperative tax jurisdictions: Not listed in Annex I (absent, as of 2026-02-17)
  • Egmont Group FIU: FID (present, as of 2026-07-17)
  • Beneficial-ownership register: Restricted (live) (present, as of 2026-07-17)
  • Transparency International CPI: 34/100, rank 109 (present, as of 2025)

Evidence freshness

  • FATF monitored-jurisdiction status: current; data 2026-06-19
  • FATF mutual evaluation and follow-up ratings: current; data 2026-07-31; follow-up 2024-12; base assessment 2024-12
  • World Bank governance indicators: current; data 2024
  • UN, UK, EU and US sanctions regimes: current; data 2026-08-16

Contextual signals are public evidence only and do not change the immutable v2 score.

Download evidence PDF · CSV · JSON

Regional peer scores

FAQ

Is Bosnia and Herzegovina on the FATF grey list?

Yes. As of the 19 Jun 2026 FATF plenary, Bosnia and Herzegovina is on the FATF grey list (Jurisdictions Under Increased Monitoring). This is one AML indicator and does not by itself set Bosnia and Herzegovina's overall country risk rating. The next FATF plenary review is scheduled for Oct 2026.

Is Bosnia and Herzegovina subject to sanctions?

Partly. Bosnia and Herzegovina has targeted sanctions exposure rather than a comprehensive country-wide programme. Firms should screen applicable persons, entities and sectors against the OFAC, UK, EU and UN lists.

What is Bosnia and Herzegovina's country risk rating?

RegActions rates Bosnia and Herzegovina at 6.0/10 (High risk), where a higher score means higher country risk. The score combines financial crime controls, government effectiveness and rule of law, and international sanctions. Transparency International's 2025 Corruption Perceptions Index scores Bosnia and Herzegovina 34/100 (rank #109 of 182).

What due diligence applies to Bosnia and Herzegovina?

Enhanced due diligence. This is decision-support based on Bosnia and Herzegovina's FATF grey list status, governance and sanctions signals, and is not a substitute for a firm's own risk assessment.

Source: FATF black & grey lists · World Bank WGI (CC BY 4.0 — World Bank WGI) · TI CPI (CC BY-ND 4.0 — Transparency International, display only)