Serbia Country Summary
Sanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Serbia is on the FATF List of Countries that have been identified as having strategic AML deficiencies
Latest FATF Statement - 21 June 2019
The FATF welcomes Serbia’s significant progress in improving its AML/CFT regime and notes that Serbia has strengthened the effectiveness of its AML/CFT regime and addressed related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2018. Serbia is therefore no longer subject to the FATF’s monitoring process under its ongoing global AML/CFT compliance process. Serbia will continue to work with MONEYVAL to improve further its AML/CFT regime.
Compliance with FATF Recommendations
The last follow up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Serbia was undertaken in 2024. According to that Evaluation, Serbia was deemed Compliant for 5 and Largely Compliant for 35 of the FATF 40 Recommendations. It was remains Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
Serbia, as a UN member, must adhere to sanctions imposed by the UN Security Council, which aims to maintain international peace and security through various measures. Since 1966, the Security Council has established 31 sanctions regimes, with 15 ongoing as of October 2023, focusing on political settlements, nuclear non-proliferation, and counter-terrorism. The UN emphasizes that sanctions should support peaceful transitions rather than solely serve punitive purposes.
The UK National Crime Agency has issued a Red Alert regarding Russia's attempts to circumvent sanctions through intermediary countries, including Serbia. Businesses in these countries are warned to exercise due diligence, particularly concerning transactions involving high-priority items that may be used in sanctions evasion efforts. Additionally, the US has expanded its sanctions authority in the Western Balkans to include actions undermining democratic processes and human rights abuses.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 35 |
| World Bank: Control of Corruption Percentile Rank | 38 |
Corruption remains a significant issue in Serbia, with Transparency International ranking the country 104th out of 180 in its 2023 Corruption Perception Index, reflecting a decline in anti-corruption efforts. While Serbia has established various legal frameworks and agencies to combat corruption, including specialized prosecution units and a Whistleblower Protection Law, enforcement remains weak, and high-level officials often evade accountability. Additionally, corruption is pervasive in public procurement and other sectors, creating obstacles for foreign investment and undermining the rule of law.
Economy
Serbia's economy has shown modest improvement due to macroeconomic reforms, financial stability, and fiscal discipline, with the government prioritizing foreign investment. Despite challenges such as bureaucratic delays and corruption, the country benefits from a strategic location, a well-educated labor force, and competitive labor costs, making it attractive for U.S. investors. However, political influence and issues surrounding state-owned enterprises remain significant concerns.
Serbia's investment climate has seen modest improvements due to macroeconomic reforms and financial stability, with the government prioritizing foreign investment. The country offers a favorable environment for U.S. investors, characterized by a strategic location, a well-educated labor force, competitive labor costs, and various investment incentives. However, challenges such as bureaucratic delays, corruption, and political influence on economic decisions remain significant concerns.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings