Kosovo Country Summary

FATF Status

Kosovo is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

A Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards has not yet been undertaken for Kosovo.

Kosovo has made strides in combating corruption, with recent opinion polls indicating a significant decline in public concern over the issue, suggesting that it is no longer viewed as a top priority by citizens. Despite the enactment of robust anti-corruption legislation and the establishment of agencies dedicated to fighting corruption, challenges remain in effectively investigating and prosecuting corrupt practices, particularly in sectors like real estate and construction.

The economy of Kosovo is characterized as an emerging market with a population of approximately 1.8 million, demonstrating resilience despite global challenges such as the COVID-19 pandemic and geopolitical tensions. Forecasts from the IMF and World Bank predict a GDP growth of around 4.0 percent for 2024, although foreign direct investment (FDI) remains limited, with significant reliance on remittances from the diaspora, which account for a substantial portion of the GDP. Efforts to enhance the investment climate have been made through government initiatives aimed at simplifying business registration and reducing bureaucratic barriers, yet structural issues such as high unemployment rates, a large informal economy, and ongoing political tensions with Serbia continue to hinder economic growth and FDI attraction.