The Financial Action Task Force (FATF) has added Bosnia and Herzegovina back to its “grey list” of countries under increased monitoring for financial crime. Experts predict this designation will negatively impact Bosnia’s economy by discouraging foreign investment. The move is expected to create further hurdles for the country’s aspirations to join the European Union. Being on the watchlist signals deficiencies in a country’s measures to combat money laundering and terrorist financing. This listing raises the risk profile for doing business with Bosnian entities, potentially increasing transaction costs and scrutiny. The FATF decision follows concerns regarding Bosnia’s implementation of anti-crime financial regulations. Authorities have not yet commented on specific steps to address the FATF’s concerns and regain compliance.