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.

Corruption remains a significant issue in Serbia, as evidenced by its ranking of 104th out of 180 countries on Transparency International's Corruption Perception Index for 2023. Despite legal frameworks and specialized anti-corruption units established since 2018, enforcement is often ineffective, with most prosecutions targeting low-level officials and a lack of repercussions for high-ranking officials who fail to disclose assets. U.S. firms are advised to conduct thorough due diligence due to the pervasive nature of corruption, particularly in public procurement and natural resource sectors.

Serbia's economy has shown modest improvement due to macroeconomic reforms, financial stability, and fiscal discipline, with a strong emphasis on attracting foreign investment. The government has implemented significant reforms to enhance the business environment, particularly in sectors such as agriculture, renewable energy, and manufacturing, while facing challenges like bureaucratic delays and corruption. Despite a peak inflation rate of 16.2% in March 2023, inflation has since decreased, and the banking system remains well-capitalized, supporting ongoing economic growth.

Serbia's investment climate has seen modest improvements due to macroeconomic reforms and fiscal discipline, with the government prioritizing foreign investment. The country offers a strategic location, a well-educated labor force, and competitive labor costs, which attract U.S. investors, although challenges such as bureaucratic delays and corruption persist. Recent reforms and the hosting of Expo 2027 present further opportunities for growth in various sectors, provided the government continues to implement promised changes.