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 concern 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 remains weak, with most investigations targeting low-level officials and high-profile cases often lacking adequate whistleblower protections. U.S. firms are advised to conduct thorough due diligence before engaging in business in Serbia, as corruption is particularly prevalent in public procurement and government dealings.

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 in labor laws and public procurement, aiming to enhance the business environment, although challenges such as bureaucratic delays and corruption persist. Despite these issues, Serbia's strategic location, competitive labor costs, and generous investment incentives make it an appealing destination for foreign direct investment.

Serbia's investment climate has seen modest improvements due to macroeconomic reforms and financial stability, with the government prioritizing the attraction of foreign investment. U.S. investors appreciate Serbia's strategic location, skilled labor force, and competitive labor costs, although challenges such as bureaucratic delays and corruption persist. The government has implemented significant reforms to enhance the business environment, and if it continues to deliver on these reforms during its EU accession process, further business opportunities are expected to arise.