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, evidenced by a significant drop in public concern over the issue and improvements in its Corruption Perception Index. Despite strong anti-corruption legislation and the establishment of agencies like the Anti-Corruption Agency, the government struggles with effective enforcement and prosecution of corrupt practices. Recent measures, such as the draft Law on the Register of Beneficial Owners, aim to enhance transparency and accountability in public procurement, yet challenges remain due to inefficiencies in the judicial system and ongoing issues with bribery and lack of transparency.

Kosovo has an emerging market economy with a population of approximately 1.8 million, demonstrating resilience against global shocks such as the pandemic and geopolitical tensions. The IMF and World Bank project a GDP growth of around 4.0 percent for 2024, although the economy faces challenges like high unemployment rates, a large informal sector, and limited foreign direct investment, despite significant diaspora remittances contributing to its GDP.

Kosovo's investment climate is characterized by limited foreign direct investment (FDI) and significant reliance on diaspora remittances, which constitute a substantial portion of its GDP. The government has made efforts to simplify business registration and reduce bureaucratic barriers, yet challenges remain due to a large informal economy, high unemployment rates, and political interference in economic policies. Despite these hurdles, Kosovo's young population, low labor costs, and access to the EU market present potential opportunities for future investment.