_________________________________________________________
US State Dept Narcotics Report 2012
Montenegro is an important transit country for illegal drugs moving to
Central and Western Europe along the “Balkan Route.” Skunk, a
selection of selectively bred marijuana, from Albania and heroin from
Afghanistan are the most prevalent drugs trafficked. Cocaine is
smuggled by sea and air from South America to Montenegro with the
increased involvement of Montenegrin citizens, either as organizers or
couriers. While a small portion of the smuggled cocaine is used for
domestic consumption, the majority is shipped to Western and Central
Europe. Synthetic drugs are not commonly used, but the summer influx
of tourists along Montenegro’s coast leads to an increase in use.
Even though Montenegro is a major route for drug smuggling, the
amount of seized drugs remained low. In the 2011 reporting period,
563.6 kg of marijuana, 3.1 kg of heroin, 0.355 kg of cocaine, 0.139 kg of
synthetic drugs, 0.109 kg of hashish and 0.105 kg of psilocybin and
psilocin were seized. The majority of drugs were seized at land
crossings, but there were also seizures at ports and airports.
Montenegro is a party to the 1988 UN Drug Convention. Montenegro is
also a party to the UN Convention against Transnational Organized
Crime and its protocols on trafficking in persons and migrant smuggling
and to the UN Convention against Corruption. The Law on Precursors
and Narcotics has been in force since December 2009. To complete the
national anti-narcotics legislation framework, Montenegro adopted the
Law on Prevention and Misuse of Drugs in 2011. Montenegrin law
enforcement officials are becoming more proactive in combating the
operations of illegal drug distribution networks. Border police and
customs officers perform narcotics control operations on a daily basis.
Within the police system, there are departments specialized in narcotics-
related crimes. The Border police also have 10 drug-sniffing dogs
working at border crossings, as well as equipment for drug testing.
Drug related crimes continued to constitute a significant percentage of
the overall crimes committed in the country. During the first ten months
of 2011, police filed charges against 189 persons in 123 cases involving
the production and distribution of narcotics. Several important
counternarcotics police operations were also launched. According to the
police, there were no reported cases of synthetic drug lab operations or
synthetic drug production.
Drug use began to spread more widely in Montenegro in the mid-1990s
and has become a significant public health issue. Reliable statistics on
drug use from the Ministry of Health are still lacking. Authorities estimate
that Montenegro has between 2,500-3,000 drug addicts, but the actual
number may be higher. According to the most recent EU survey of high
school-age respondents on the use of alcohol and other drugs, the most
frequently-used illicit drugs were marijuana and inhalants, followed by
tranquilizers and sedatives. The Criminal Procedure Code (CPC) and
Criminal Code (CC) call for mandatory treatment of drug addicts. They
also permit temporary and permanent seizure of assets derived from
illicit drug trafficking, and authorize the use of secret surveillance
measures in the pre-trial and investigation process. Permanent
confiscation of assets can also be applied if the offender was sentenced
by a final decision for a crime involving the unauthorized manufacture,
possession, or distribution of narcotic drugs. The penalty for producing
and selling drugs ranges from two to 15 years in prison.
In accordance with the “National Response to Drugs 2008-2012”
initiative, the GoM through its Office on Drug Prevention is implementing
activities in four key areas: prevention, treatment and rehabilitation,
reduction of harm, and police and customs interventions. In March 2010,
the National Council for the Prevention of Drug Abuse, with the President
at the helm, was established to treat, rehabilitate, re-socialize, and
reduce the number of drug addicts. However, the civil sector has
criticized this Council for being unmotivated and ineffective.
During the last year, the Ministry of Health established a network of 21
municipal drug prevention offices across the country. The offices are the
major tool for implementing preventive and educational activities
covering all primary and secondary schools nationwide. Schools, health
centers, police stations, social centers and NGOs all supplement the
activities of the municipal drug prevention offices. Preventative medical
treatment is free of charge within the public health system. Although the
Spuz Prison hospital contains a department for treating drug addicts,
prisoners, along with mentally ill prisoners, were often treated in the
Kotor psychiatric hospital, which lacks facilities and personnel to house
drug addicts and mentally ill patients.
Montenegro views the U.S. as a strategic partner and generally supports
U.S. goals in the Balkans, including drug control initiatives. The
Montenegro Special Prosecutor’s Office cooperates with the DEA
regional office in Rome on matters of mutual concern. The DEA
maintains an active liaison with the National Police Directorate’s
Narcotics Division. At the International Drug Enforcement Conference
(IDEC) organized by the DEA in April in Mexico, Montenegro was
admitted as a full-fledged member of the IDEC. Montenegro recognizes
the 1902 U.S. – Kingdom of Serbia extradition treaty as valid. As a matter
of government policy, Montenegro does not encourage or facilitate illicit
production or distribution of narcotic or psychotropic drugs or other
controlled substances, or the laundering of proceeds from illegal drug
transactions.
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2)
Montenegro is a source, transit, and destination country for men,
women, and children who are subjected to sex trafficking and forced
labor. Trafficking victims are mostly women and girls from Eastern
Europe and other Balkan countries, including Serbia and Kosovo, who
migrate or are smuggled through the country en route to Western
Europe and subjected to sex trafficking in Montenegro. Roma children
are coerced into street begging in the country; many of these children
come from Albania, Kosovo, Serbia, and from within Montenegro. In prior
years, there were reports that mainly foreign men and boys are
subjected to forced labor in Montenegro’s growing construction industry.
Montenegrin women and girls are vulnerable to sex trafficking in other
Balkan countries; at least one Montenegrin girl was subjected to
conditions of sex trafficking in Serbia during the reporting period. There
were reports that some foreign women were forced to work in
Montenegro.
The Government of Montenegro does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. Montenegro increased its law enforcement
efforts and charged police officers for abuse of power in connection with
a human trafficking case. Victim identification, however, remained weak;
the government did not identify any trafficking victims this year. The
government also deported large numbers of children caught begging
without fully examining whether any were victims of trafficking.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2009
The Ministry of Interior, through the Police Directorate and the Agency
for National Security, is primarily responsible for counterterrorism
operations. In 2009, the Ministry of Interior continued work on a National
Counterterrorism Strategy to foster better counterterrorism cooperation
among its different institutions.
Seventeen individuals, including four Americans, were convicted and
sentenced to prison in 2008 for an intended terrorist act referred to as
the “Eagles Flight” case.[4] The individuals had appealed their
conviction, and, in 2009, the appellate court dismissed their appeals,
indicating that each was to serve the original sentence. During 2009, five
of the individuals, including two U.S. citizens, completed their sentences,
and were released from prison.
Montenegrin legislation on terrorism has been harmonized with EU
standards and UN conventions.[5] In 2007, Parliament passed the Law
on the Prevention of Money Laundering and Terrorist Financing. The
FIU also publishes an international list of terrorists and terrorist
organizations established pursuant to UN resolution 1267. In 2009, the
FIU produced instructions for risk analysis for the Prevention of Money
Laundering and Terrorist Financing. These instructions set out risk
factors which determine the level of risk of individual clients, groups, and
business relations.
Montenegro contributed to international efforts supporting the
government of Afghanistan, and prepared to deploy a military unit to
Afghanistan. In July, the Parliament of Montenegro approved a plan to
send 31 military personnel to join the NATO-led International Security
Assistance Force mission in Afghanistan. This deployment is Montenegro’
s first participation in a NATO-led peacekeeping mission. Montenegrin
troops operated within ISAF’s Regional Command North.
Montenegrin police forces, including the “Special Anti-Terrorism Unit,”
(SAJ), have received international and U.S. training and equipment.
Besides the SAJ, the Special Police Unit is also training and equipping a
high-threat arrest team that can be used to augment the SAJ during
larger counterterrorism operations. For example, the George Marshall
European Center for Security Studies trained government officials,
police, and military officers through two programs in 2009: the
Combating Terrorism Language Program and the Terrorism and Security
Studies Program. Also, the Department of Justice ICITAP program
provided training for the police organized crime unit, which is also
responsible for conducting terrorism investigations. Despite significant
training and equipment from outside donors, implementation of the laws
is weak, corruption and porous borders remain issues, and Montenegrin
law enforcement and security agencies will require additional assistance
to attain international standards.
_________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
|
|
Sanctions:
The European Union adopted Council Regulation (EC) No
1295/98 on 22 June 1998. The Regulation provided, among other
matters, for a freeze on the funds of the Governments of the
Federal Republic of Yugoslavia (FRY) and the Republic of Serbia.
The restrictive measures were subsequently modified to include a
ban on investment in the FRY and the Republic of Serbia.
Council Regulation (EC) No 2488/2000 lifted the investment ban
and the financial sanctions in respect of the FRY and the Republic
of Serbia. However, specific sanctions still applied to former
President Slobodan Milosevic and those persons associated with
him.
Commission Regulation (EC) No 1205/2001 modified the financial
sanctions to cover only those funds belonging to Mr Slobodan
Milosevic, and certain members of his family and other close
associates. The Regulation had the effect of amending the list of
persons in Annex I of Council Regulation (EC) No 2488/2000 to
whom the financial sanctions apply.
For further information:
http://www.hm-treasury.gov.uk/fin_sanctions_yugoslavia.htm
Montenegro is regarded as being part of the geographical region
of the Western Balkans and therefore falls under the US sanction
order as follows: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/balkans.aspx
____________________________________________________
Offshore Jurisdiction Blacklists – Further Information:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Independent since 2006, Montenegro continues to develop and
improve the capabilities necessary to prevent money laundering,
combat terrorist financing and fight corruption. Montenegro is a
country of both origin and transit for organized crime activities,
with money laundering, drug smuggling and corruption being
major areas of concern. Montenegro is a part of the East-West
transit corridor for drugs, and government authorities consider
drug-related crimes the most serious source of illicit proceeds in
the country. In addition, government sources claim laundered
money primarily comes from the foreign off-shore zones (British
Virgin Islands, Cyprus, Belize) through the purchase of real
estate, the acquisition of consumer luxury items and investment in
privately owned businesses. Certain factors, such as the high
level of cash usage in the economy, may influence the
effectiveness of the fight against money laundering and terrorist
financing. Montenegro’s use of the euro, despite being outside
the Euro-Zone, makes it potentially vulnerable to organized
criminals seeking to launder cash.
Within Montenegro there exists a significant black market for
smuggled items such as stolen cars, narcotics, cigarettes and
counterfeit products. Many of these items are trafficked by
organized criminal groups. Proceeds from illegal activities are
invested heavily in real estate. Montenegrin authorities do not
consider Montenegro to be exposed to terrorism or a haven for
terrorist finance.
Corruption is another problem which impacts law enforcement
organizations and the judiciary in Montenegro. While the
government has made legislative and institutional efforts to
eliminate corruption, these efforts have yet to produce significant
results in the areas of public procurement, privatization,
construction permits, public administration, the judicial system, law
enforcement and local government. The origin of funds used to
acquire companies or businesses during privatization is often
unclear or lacking in transparency. Montenegrin criminal justice
officials express serious concern about the extent of financial
crimes in Montenegro, but lack concrete data to support
suspicions and mechanisms to measure corruption and the impact
of counter-corruption measures.
In June 2004, Montenegro passed a Free Trade Zone Law, which
offers businesses benefits and exemptions from custom duties,
taxes and other duties. The Port of Bar is currently the only free
trade zone (FTZ) in Montenegro. The Port of Bar Holding
Company operates the FTZ. The general business rules of the
Bar free zone require each FTZ user to come to an agreement
with the Customs Authority of Montenegro on the form of customs
records to be maintained about the flow of goods.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, savings banks, credit agencies, loan
brokers and savings and loan institutions; organizations
performing payment transactions and post offices; investment and
pension fund managers; stock brokers; insurance companies and
brokers, and branches of foreign insurance companies dealing
with life assurance; lotteries and games of chance; exchange
offices; pawnshops; auditors, accountants, and tax advice service
providers; issuers of electronic money; humanitarian, non-
governmental and non-profit organizations; factoring and property
management companies; payment and credit card issuers and
operators; financial leasing companies; travel and real estate
agents; safekeeping and guarantee services; and auctioneers
and dealers of motor vehicles, vessels, aircraft, works of art,
precious metals and stones, and high-value goods
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, savings banks, credit agencies, loan
brokers and savings and loan institutions; organizations
performing payment transactions and post offices; investment and
pension fund managers; stock brokers; insurance companies and
brokers, and branches of foreign insurance companies dealing
with life assurance; lotteries and games of chance; exchange
offices; pawnshops; auditors, accountants, and tax advice service
providers; issuers of electronic money; humanitarian, non-
governmental and non-profit organizations; factoring and property
management companies; payment and credit card issuers and
operators; financial leasing companies; travel and real estate
agents; safekeeping and guarantee services; and auctioneers
and dealers of motor vehicles, vessels, aircraft, works of art,
precious metals and stones, and high-value goods
Number of STRs received and time frame: 99 from January 1 to
December10, 2010
Number of CTRs received and time frame: 53,306 from January 1
to December 10, 2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Two in 2009 and none in 2010
Convictions: Two in 2009 and none in 2010
Assets forfeited: criminally: $216,200 in 2009 and $156,160 in
2010 civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Montenegro is a member of MONEYVAL, a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Montenegro_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Harmonization of Montenegro’s laws with international standards
for anti-money laundering/counter-terrorist financing (AML/CFT)
legislation is still pending completion. Although the basic legal and
institutional framework to deal with ML/TF is in place, the
operational and investigative capacities of law enforcement and
the judiciary need further enhancement. Montenegro’s FIU, the
Administration for Prevention of Money Laundering, lacks
sufficient human resources, workspace and IT equipment to deal
with its numerous assignments. Remuneration is generally low in
all AML/CFT-related agencies.
Collection and management of statistics need improvement, along
with the capacity to investigate financial crimes of the police and
prosecutors. Prosecutors continue to require additional time and
training before they can efficiently take an active role in financial
investigations. In addition, closer cooperation and coordination is
needed between relevant supervisory agencies such as the
Central Bank of Montenegro, Securities Exchange Commission,
Insurance Supervision Agency and the FIU, and law enforcement
institutions. Broader involvement from the private sector is also
necessary.
The framework for international judicial cooperation in ML/TF
cases is generally comprehensive. Although Montenegro has
signed bilateral cooperation agreements with a number of
countries, the country needs to strengthen implementation.
During 2010, Montenegro signed bilateral agreements on
cooperation in ML/TF with Moldova, San Marino, Russia, and
Israel.
The implementation of asset forfeiture laws is still in the initial
stages of development, as evidenced by a lack of confiscations
related to money laundering crimes and the inability to freeze
terrorist assets without delay.
Reporting of suspicious transactions by financial, and particularly
non-banking institutions, requires significant improvement.
According to the FIU, Montenegrin officials have not recognized
the existence of informal systems of financial transfers or
alternative remittance systems. While activities in the fight against
terrorism are broadly aligned with the existing international
regulatory framework, capacities to detect and address activities
possibly linked to terrorism need to be further enhanced. There
were no precise data on ML from the law enforcement/judicial
authorities to assess an overall level of financial crimes in the
country.
In August 2010, the Government of Montenegro announced that
persons with a credible global reputation will be able to obtain
Montenegrin citizenship if they directly invest at least 500,000
euros (approximately $666,700) in Montenegro and its economy.
As of year end this new regulation is still pending; this is a
potential issue of concern should the government enact such a
provision.
Although legal and institutional mechanisms to fight corruption
were strengthened, the perception of corruption remains
widespread and could potentially affect efforts to combat money
laundering. A Joint Investigative Team, consisting of
representatives of law enforcement bodies and headed by the
Special Prosecutor was formed in early 2010. In October 2010,
the government of Montenegro adopted the Strategy for
Prevention of Money Laundering and Terrorist Finance and
adopted the Action Plan for its implementation through 2010-2012.
The Montenegrin FIU exchanged information with the US financial
intelligence unit, FINCEN, in two high profile cases related to
organized crime and money laundering.
Potentially significant accomplishments will be achieved when
Montenegro completes amendments to the Law on Prevention of
Money Laundering and Terrorist Finance, which are scheduled to
be adopted in Parliament in early 2011. The amendments
primarily relate to electronic money transfers, new technologies,
unusual transactions, reporting of suspicious transactions, and
extending the list of designated entities supervised by the FIU.
The European Union adopted Council Regulation (EC) No
1295/98 on 22 June 1998. The Regulation provided, among other
matters, for a freeze on the funds of the Governments of the
Federal Republic of Yugoslavia (FRY) and the Republic of Serbia.
The restrictive measures were subsequently modified to include a
ban on investment in the FRY and the Republic of Serbia.
Council Regulation (EC) No 2488/2000 lifted the investment ban
and the financial sanctions in respect of the FRY and the Republic
of Serbia. However, specific sanctions still applied to former
President Slobodan Milosevic and those persons associated with
him.
Commission Regulation (EC) No 1205/2001 modified the financial
sanctions to cover only those funds belonging to Mr Slobodan
Milosevic, and certain members of his family and other close
associates. The Regulation had the effect of amending the list of
persons in Annex I of Council Regulation (EC) No 2488/2000 to
whom the financial sanctions apply.
For further information:
http://www.hm-treasury.gov.uk/fin_sanctions_yugoslavia.htm
Montenegro is regarded as being part of the geographical region
of the Western Balkans and therefore falls under the US sanction
order as follows: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/balkans.aspx
____________________________________________________
Offshore Jurisdiction Blacklists – Further Information:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Independent since 2006, Montenegro continues to develop and
improve the capabilities necessary to prevent money laundering,
combat terrorist financing and fight corruption. Montenegro is a
country of both origin and transit for organized crime activities,
with money laundering, drug smuggling and corruption being
major areas of concern. Montenegro is a part of the East-West
transit corridor for drugs, and government authorities consider
drug-related crimes the most serious source of illicit proceeds in
the country. In addition, government sources claim laundered
money primarily comes from the foreign off-shore zones (British
Virgin Islands, Cyprus, Belize) through the purchase of real
estate, the acquisition of consumer luxury items and investment in
privately owned businesses. Certain factors, such as the high
level of cash usage in the economy, may influence the
effectiveness of the fight against money laundering and terrorist
financing. Montenegro’s use of the euro, despite being outside
the Euro-Zone, makes it potentially vulnerable to organized
criminals seeking to launder cash.
Within Montenegro there exists a significant black market for
smuggled items such as stolen cars, narcotics, cigarettes and
counterfeit products. Many of these items are trafficked by
organized criminal groups. Proceeds from illegal activities are
invested heavily in real estate. Montenegrin authorities do not
consider Montenegro to be exposed to terrorism or a haven for
terrorist finance.
Corruption is another problem which impacts law enforcement
organizations and the judiciary in Montenegro. While the
government has made legislative and institutional efforts to
eliminate corruption, these efforts have yet to produce significant
results in the areas of public procurement, privatization,
construction permits, public administration, the judicial system, law
enforcement and local government. The origin of funds used to
acquire companies or businesses during privatization is often
unclear or lacking in transparency. Montenegrin criminal justice
officials express serious concern about the extent of financial
crimes in Montenegro, but lack concrete data to support
suspicions and mechanisms to measure corruption and the impact
of counter-corruption measures.
In June 2004, Montenegro passed a Free Trade Zone Law, which
offers businesses benefits and exemptions from custom duties,
taxes and other duties. The Port of Bar is currently the only free
trade zone (FTZ) in Montenegro. The Port of Bar Holding
Company operates the FTZ. The general business rules of the
Bar free zone require each FTZ user to come to an agreement
with the Customs Authority of Montenegro on the form of customs
records to be maintained about the flow of goods.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, savings banks, credit agencies, loan
brokers and savings and loan institutions; organizations
performing payment transactions and post offices; investment and
pension fund managers; stock brokers; insurance companies and
brokers, and branches of foreign insurance companies dealing
with life assurance; lotteries and games of chance; exchange
offices; pawnshops; auditors, accountants, and tax advice service
providers; issuers of electronic money; humanitarian, non-
governmental and non-profit organizations; factoring and property
management companies; payment and credit card issuers and
operators; financial leasing companies; travel and real estate
agents; safekeeping and guarantee services; and auctioneers
and dealers of motor vehicles, vessels, aircraft, works of art,
precious metals and stones, and high-value goods
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, savings banks, credit agencies, loan
brokers and savings and loan institutions; organizations
performing payment transactions and post offices; investment and
pension fund managers; stock brokers; insurance companies and
brokers, and branches of foreign insurance companies dealing
with life assurance; lotteries and games of chance; exchange
offices; pawnshops; auditors, accountants, and tax advice service
providers; issuers of electronic money; humanitarian, non-
governmental and non-profit organizations; factoring and property
management companies; payment and credit card issuers and
operators; financial leasing companies; travel and real estate
agents; safekeeping and guarantee services; and auctioneers
and dealers of motor vehicles, vessels, aircraft, works of art,
precious metals and stones, and high-value goods
Number of STRs received and time frame: 99 from January 1 to
December10, 2010
Number of CTRs received and time frame: 53,306 from January 1
to December 10, 2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Two in 2009 and none in 2010
Convictions: Two in 2009 and none in 2010
Assets forfeited: criminally: $216,200 in 2009 and $156,160 in
2010 civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Montenegro is a member of MONEYVAL, a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Montenegro_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Harmonization of Montenegro’s laws with international standards
for anti-money laundering/counter-terrorist financing (AML/CFT)
legislation is still pending completion. Although the basic legal and
institutional framework to deal with ML/TF is in place, the
operational and investigative capacities of law enforcement and
the judiciary need further enhancement. Montenegro’s FIU, the
Administration for Prevention of Money Laundering, lacks
sufficient human resources, workspace and IT equipment to deal
with its numerous assignments. Remuneration is generally low in
all AML/CFT-related agencies.
Collection and management of statistics need improvement, along
with the capacity to investigate financial crimes of the police and
prosecutors. Prosecutors continue to require additional time and
training before they can efficiently take an active role in financial
investigations. In addition, closer cooperation and coordination is
needed between relevant supervisory agencies such as the
Central Bank of Montenegro, Securities Exchange Commission,
Insurance Supervision Agency and the FIU, and law enforcement
institutions. Broader involvement from the private sector is also
necessary.
The framework for international judicial cooperation in ML/TF
cases is generally comprehensive. Although Montenegro has
signed bilateral cooperation agreements with a number of
countries, the country needs to strengthen implementation.
During 2010, Montenegro signed bilateral agreements on
cooperation in ML/TF with Moldova, San Marino, Russia, and
Israel.
The implementation of asset forfeiture laws is still in the initial
stages of development, as evidenced by a lack of confiscations
related to money laundering crimes and the inability to freeze
terrorist assets without delay.
Reporting of suspicious transactions by financial, and particularly
non-banking institutions, requires significant improvement.
According to the FIU, Montenegrin officials have not recognized
the existence of informal systems of financial transfers or
alternative remittance systems. While activities in the fight against
terrorism are broadly aligned with the existing international
regulatory framework, capacities to detect and address activities
possibly linked to terrorism need to be further enhanced. There
were no precise data on ML from the law enforcement/judicial
authorities to assess an overall level of financial crimes in the
country.
In August 2010, the Government of Montenegro announced that
persons with a credible global reputation will be able to obtain
Montenegrin citizenship if they directly invest at least 500,000
euros (approximately $666,700) in Montenegro and its economy.
As of year end this new regulation is still pending; this is a
potential issue of concern should the government enact such a
provision.
Although legal and institutional mechanisms to fight corruption
were strengthened, the perception of corruption remains
widespread and could potentially affect efforts to combat money
laundering. A Joint Investigative Team, consisting of
representatives of law enforcement bodies and headed by the
Special Prosecutor was formed in early 2010. In October 2010,
the government of Montenegro adopted the Strategy for
Prevention of Money Laundering and Terrorist Finance and
adopted the Action Plan for its implementation through 2010-2012.
The Montenegrin FIU exchanged information with the US financial
intelligence unit, FINCEN, in two high profile cases related to
organized crime and money laundering.
Potentially significant accomplishments will be achieved when
Montenegro completes amendments to the Law on Prevention of
Money Laundering and Terrorist Finance, which are scheduled to
be adopted in Parliament in early 2011. The amendments
primarily relate to electronic money transfers, new technologies,
unusual transactions, reporting of suspicious transactions, and
extending the list of designated entities supervised by the FIU.
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| MONTENEGRO |
| KnowYourCountry |
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| Last Updated: 16 April 2012 |