Kosovo Country Summary
Sanctions
High 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
Low Concern
Offshore Finance Center
Low 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 no international sanctions currently in force against this country
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 44 |
| World Bank: Control of Corruption Percentile Rank | 49 |
The governing party in Kosovo, which won a significant victory in 2021 on an anti-corruption platform, has seen a notable decline in public concern over corruption, as reflected in opinion polls. Despite the enactment of strong anti-corruption legislation and improvements in Transparency International’s Corruption Perception Index, the government struggles with effectively investigating and prosecuting corrupt individuals. Recent measures, including the draft Law on the Register of Beneficial Owners, aim to enhance transparency and accountability in public procurement, further supporting the fight against corruption and money laundering.
Economy
Kosovo has an emerging market economy with a population of approximately 1.8 million, demonstrating resilience despite global challenges such as the pandemic and geopolitical tensions. The IMF and World Bank project a GDP growth of around 4.0 percent for 2024, although economic growth is hampered by structural issues like a large informal economy and high unemployment rates, particularly among women and youth. While foreign direct investment remains limited, diaspora remittances significantly contribute to the economy, accounting for about 14.6 percent of GDP.
Kosovo's investment climate is characterized by efforts to simplify business registration and reduce bureaucratic hurdles, although challenges persist due to a large informal economy and high unemployment rates. Foreign Direct Investment (FDI) has seen modest growth, with net inflows reaching €816 million in 2023, primarily benefiting the real estate and leasing sectors. However, ongoing political tensions, particularly with Serbia, and inconsistent government policies continue to hinder investor confidence.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings