Kosovo Country Summary
Higher Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Medium 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
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.
Sanctions
There are currently no United Nations sanctions in force against Kosovo; the UN arms embargo from 1998 was lifted in 2001. The United States maintains targeted Kosovo-related sanctions under the Western Balkans program (including LPK on the SDN List and individuals such as Zvonko Veselinović and Milan Radoičić), and the European Union imposed temporary measures in 2023 restricting funding and high-level engagement with Kosovo, with gradual lifting beginning in 2025; the United Kingdom has also imposed sanctions on Kosovo-linked individuals in 2022.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 43 |
| World Bank: Control of Corruption Percentile Rank | 49 |
Kosovo has made strides in establishing legal frameworks and institutions aimed at combating corruption, such as the Anti-Corruption Agency and laws designed to prevent conflicts of interest among public officials. Despite these efforts, the government struggles with effectively investigating and prosecuting corrupt individuals, although recent legislative measures, including the draft Law on the Register of Beneficial Owners, aim to enhance transparency and tackle financial crimes.
Economy
Kosovo's economy is characterized as an emerging market with a population of approximately 1.6 million, demonstrating resilience despite global challenges such as the war in Ukraine and rising commodity prices. While Foreign Direct Investment (FDI) remains limited, remittances from the diaspora play a crucial role in the economy, contributing significantly to GDP. The government has initiated reforms to enhance the investment climate, including simplifying business registration processes and establishing a Commercial Court to improve legal predictability, although persistent structural issues, such as high unemployment rates and a large informal economy, continue to hinder economic growth and productivity.
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