Serbia Country Summary
Medium-High Risk
View full Ratings TableSanctions
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
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
As of October 2023, Serbia is subject to international sanctions imposed by the European Union, which include prohibitions related to contracts and transactions affected by measures from the United Nations Security Council Resolution 757 (1992). Additionally, the United States has expanded its sanctions authority through Executive Order 14033, targeting individuals and entities involved in activities that threaten peace, security, or democratic processes in the Western Balkans, which includes Serbia.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 35 |
| World Bank: Control of Corruption Percentile Rank | 38 |
Crime and corruption remain significant challenges in Serbia, with ongoing concerns about the effectiveness of anti-corruption measures and the influence of organized crime on governance. While Serbia has established legal frameworks and specialized units to combat corruption, the implementation of these laws is often hampered by political interference and a lack of accountability, leading to a pervasive environment where high-level corruption goes largely unpunished.
Economy
Serbia's economy has shown modest improvements in its investment climate, largely due to macroeconomic reforms and fiscal discipline, with the government prioritizing foreign investment attraction. The introduction of a two-year Stand-by Arrangement with the IMF in December 2022 has bolstered financial stability and reassured sovereign bond buyers, while U.S. investors are drawn to Serbia's strategic location, skilled labor force, and competitive costs. However, challenges such as bureaucratic inefficiencies, corruption, and political influences on economic decisions remain, alongside ongoing efforts to address the issues of state-owned enterprises and the informal economy.
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