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In a significant move towards strengthening financial integrity, on March 6, 2025, the National Assembly of the Republic of Serbia published Amendments to the Law on the Prevention of Money Laundering and Terrorist Financing (unofficial translation) in the official gazette. These amendments align Serbian regulations with EU Directive (EU) 2015/843 (5th Anti-Money Laundering Directive) and international standards set by the Financial Action Task Force (FATF) and MONEYVAL. The updates aim to enhance due diligence, increase transparency and reinforce oversight over digital assets and beneficial ownership structures.
A major focus of the amendments is on introducing stricter compliance obligations for financial institutions, businesses and digital asset service providers. The updated law requires a more proactive approach to monitoring transactions, verifying customer identities and reporting suspicious activities to authorities. Failure to comply could lead to severe penalties, affecting both domestic and foreign entities operating in Serbia.
The bigger picture
These reforms are crucial as Serbia seeks to strengthen its financial regulatory framework and integrate more seamlessly into the European financial system. The amendments not only bring Serbia in line with EU anti-money laundering/counter-terrorism financing (AML/CTF) requirements but also play a key role in the country’s ambition to join the Single Euro Payments Area (SEPA) this year. Meeting SEPA’s strict compliance standards will enable Serbia to facilitate more efficient and transparent international transactions, boosting the country’s economic competitiveness and financial stability.
The global landscape of AML/CTF regulation has evolved rapidly due to increasing risks of illicit financial activities, particularly in the realm of digital assets. The inclusion of cryptocurrency exchanges and wallet providers under Serbia’s regulatory framework reflects the international push to tighten controls on emerging financial technologies. Additionally, transparency in beneficial ownership reporting is a direct response to global efforts to combat money laundering through complex corporate structures.
FATF and MONEYVAL have both emphasised the importance of stricter regulatory oversight in countries striving to meet international standards. They previously identified significant shortcomings in Serbia’s AML/CTF framework, including ineffective oversight and enforcement. As a result, Serbia was placed under enhanced follow-up and issued a number of recommendations. Although it remains under this monitoring, the country has introduced a series of reforms in response, including updates to AML legislation and the launch of a central beneficial ownership register. These efforts are aimed at addressing past weaknesses and improving Serbia’s international standing in the fight against financial crime.
High-profile financial crime cases in the Western Balkans, involving the misuse of anonymous companies, offshore structures and cryptocurrency exchanges, have underscored the urgency for regulatory reform. Investigations by organisations such as the Crime and Corruption Reporting Network (KRIK) have exposed schemes involving Serbian and regional actors using shell companies and offshore accounts to launder millions in illicit funds. These cases revealed loopholes that criminal organisations have exploited to move and conceal assets, highlighting the need for stronger oversight. By tightening regulations, Serbia is aiming to strengthen oversight of financial transactions, expand due diligence obligations and increase transparency in areas such as digital assets and beneficial ownership.
Why should you care?
These amendments mark a significant shift for financial institutions, digital asset service providers and businesses operating in Serbia. Firms must proactively assess their compliance strategies to avoid regulatory penalties and reputational risks. Key actions include:
- Conduct a compliance gap analysis: assess existing AML/CTF policies against the new requirements to identify areas requiring updates.
- Enhance due diligence measures: strengthen customer verification processes and risk assessments, particularly for high-risk transactions.
- Implement advanced monitoring systems: invest in technology to detect suspicious financial activities, ensuring compliance with reporting obligations.
- Update beneficial ownership registers: ensure transparency and accessibility of ownership structures to meet regulatory expectations.
- Train employees on compliance obligations: Establish comprehensive training programmes to educate staff on new reporting requirements and compliance procedures.
- Engage with regulatory authorities: maintain open communication with the Administration for the Prevention of Money Laundering (APML) to clarify obligations and ensure best practices are followed.
Where there was previously a lack of comprehensive regulation for digital assets, Serbia’s new framework significantly increases scrutiny on blockchain-based financial activities. As the framework aligns with EU laws, companies already operating in EU member states should find it easier to adapt, as they are likely already familiar with the expectations. However, companies operating in this space must adapt quickly to avoid enforcement actions that could disrupt business operations.
Now in force, Serbia’s latest amendments underscore its commitment to improving financial sector integrity and aligning with international AML/CTF standards. As the country moves towards SEPA integration, adherence to these updated regulations will not only ensure compliance but also foster greater trust and stability in Serbia’s financial ecosystem. Businesses operating in Serbia should act now to ensure they are fully prepared for the regulatory landscape ahead.
