Up to 1,400 police officers in Bosnia face the sack after failing to pass strict recruitment rules set by the UN, BBC News Online has learnt.
The figure amounts to almost 8% of the country's 17,000 police officers.
The officers are all accused of violating housing laws which prohibit individuals from living in illegally-held property.
During the Bosnian War from 1992-95, thousands of people were forced from their homes under a policy known as ethnic cleansing.
How can you have police officers violating property laws which they themselves are supposed to uphold?
Kirsten Haupt
UN spokeswoman
Since the war, many people have felt unable to return home and their property has been illegally occupied by new tenants.
The UN, which has responsibility for training Bosnia's police forces, says many of the 1,400 officers are living in such houses. Others have refused to provide information about where they live.
Nearly 940 of the police officers currently work in the Serb half of Bosnia, known as Republika Srpska.
Some 300 others work in the Muslim-Croat Federation.
'Ethnic cleansing' drove thousands from their homes
The remaining 164 officers work either in the judicial system or are members of the State Border Service.
The UN in Bosnia has written to the interior ministries in both Republika Srpska and the Federation warning them of the situation and asking them to take action.
"The situation is totally unacceptable," said the UN's chief spokeswoman in Bosnia, Kirsten Haupt.
"How can you have police officers violating property laws which they themselves are supposed to uphold?
"There should not be any exceptions to the law.
"The police officers should be the role-model. They should be whiter than white."
For the past two years, the UN has been restructuring Bosnia's police forces, making them more professional and accountable.
Modern police forces are seen as crucial if Bosnia is to develop into a modern, European country.
Strict criteria
They are also needed if thousands of refugees are to be persuaded to return to their pre-war homes.
To receive final certification, the officers have to pass a number of criteria.
They have to provide evidence of educational qualifications, complete training courses, show they have no criminal record and not be in violation of the property laws.
The UN training mission finishes at the end of the year, when a European Union Police Mission will take over the work.
The officers have been given until 10 September to prove that they are living legally otherwise they will be sacked.
"We are serious about this," said Kirsten Haupt.
"If the police officers do not satisfy the property requirements they will have their provisional authorisations to work as police officers withdrawn."