Mutual Evaluation Report: 2015
C
L
P
N
N/A
    C  -  Fully Compliant ,   
    L  -  Largely Compliant,    
    P  -  Partially Compliant    
    N  -  Non-Compliant
7
12
24
4
2
Legal Systems
 
1. Money Laundering Offence
P
 
14. Protection & no tipping-off
C
2. ML offence – mental element and
corporate liability
L
 
15. Internal controls,
compliance & audit
L
3. Confiscation and provisional
measures
P
 
16. DNFBP – R.13-15 & 21
P
4. Secrecy laws consistent with the
Recommendations
L
 
17. Sanctions
P
5. Customer due diligence
P
 
18. Shell banks
C
6. Politically exposed persons
P
 
19. Other forms of reporting
C
7. Correspondent banking
L
 
20. Other NFBP & secure
transaction techniques
L
8. New technologies & non
face-to-face business
C
 
21. Special attention for
higher risk countries
N
9. Third parties and introducers
N/A
 
22. Foreign branches &
subsidiaries
C
10. Record keeping
C
 
23. Regulation, supervision
and monitoring
P
11. Unusual transactions
P
 
24. DNFBP - regulation,
supervision and monitoring
P
12. Designated Non-Financial
Businesses and Professions – R.5, 6,
8-11
N
 
25. Guidelines & Feedback
L
13. Suspicious transaction reporting
P
     
Institutional and other
measures
 
26. The FIU
P
 
31. National co-operation
P
27. Law enforcement authorities
P
 
32. Statistics
P
28. Powers of competent authorities
C
 
33. Legal persons – beneficial
owners
P
29. Supervisors
L
 
34. Legal arrangements –
beneficial owners
N/A
30. Resources, integrity and training
P
 
 
 
International Co-operation
 
35. Conventions
L
 
38. MLA on confiscation and
freezing
L
36. Mutual legal assistance (MLA)
L
 
39. Extradition
L
37. Dual criminality
L
 
40. Other forms of
co-operation
P
Nine Special
Recommendations
 
SR.I Implement UN instruments
P
 
SR VI AML requirements for
money/value transfer services
N
SR.II Criminalise terrorist financing
P
 
SR VII Wire transfer rules
P
SR.III Freeze and confiscate terrorist
assets
N
 
SR.VIII Non profit
organisations
P
SR.IV Suspicious transaction
reporting
P
 
SR.IX Cross Border
Declaration & Disclosure
P
SR.V International co-operation
P
 
 
 
*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.

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The 40 Recommendations

A. Legal Systems

Scope of the criminal offence of money laundering (Recommendations 1, 2)
Provisional measures and confiscation (Recommendation 3)

B. Measures to be taken by Financial Institutions and Non-Financial Businesses and Professions to prevent Money Laundering and Terrorist Financing

(Recommendation 4)

Customer due diligence and record-keeping (Recommendations 5 - 12)
Reporting of suspicious transactions and compliance (Recommendations 13-16)
Other measures to deter money laundering and terrorist financing (Recommendations 17-20)
Measures to be taken with respect to countries that do not or insufficiently comply with the FATF Recommendations (Recommendations 21, 22)
Regulation and supervision (Recommendations 23-25)

C. Institutional and other measures necessary in systems for combating Money Laundering and Terrorist Financing

Competent authorities, their powers and resources (Recommendations 26-32)
Transparency of legal persons and arrangements (Recommendations 33, 34)

D. International Co-operation

(Recommendation 35)

Mutual legal assistance and extradition (Recommendations 36-39)
Other forms of co-operation (Recommendation 40)


IX Special Recommendations

Recognising the vital importance of taking action to combat the financing of terrorism, the FATF has agreed these Recommendations, which, when combined with the FATF Forty Recommendations on money laundering, set out the basic framework to detect, prevent and suppress the financing of terrorism and terrorist acts.

The 40+9 Recommendations, together with their interpretative notes, provide the international standards for combating money laundering (ML) and terrorist financing (TF).

The FATF revised the 40 and IX Recommendations.  The revision of the FATF Recommendations was adopted and published in February 2012.  

I.        Ratification and implementation of UN instruments
II.      Criminalising the financing of terrorism and associated money laundering
III.      Freezing and confiscating terrorist assets
IV.      Reporting suspicious transactions related to terrorism
V.       International co-operation
VI.      Alternative remittance
VII.     Wire transfers
VIII.    Non-profit organisations
IX.      Cash couriers


I. Ratification and implementation of UN instruments

Each country should take immediate steps to ratify and to implement fully the 1999 United Nations International Convention for the Suppression of the financing of Terrorism.

Countries should also immediately implement the United Nations resolutions relating to the prevention and suppression of the financing of terrorist acts, particularly United Nations Security Council Resolution 1373.

II. Criminalising the financing of terrorism and associated money laundering

Each country should criminalise the financing of terrorism, terrorist acts and terrorist organisations. Countries should ensure that such offences are designated as money laundering predicate offences.

III. Freezing and confiscating terrorist assets

Each country should implement measures to freeze without delay funds or other assets of terrorists, those who finance terrorism and terrorist organisations in accordance with the United Nations resolutions relating to the prevention and suppression of the financing of terrorist acts.

Each country should also adopt and implement measures, including legislative ones, which would enable the competent authorities to seize and confiscate property that is the proceeds of, or used in, or intended or allocated for use in, the financing of terrorism, terrorist acts or terrorist organisations.

IV. Reporting suspicious transactions related to terrorism

If financial institutions, or other businesses or entities subject to anti-money laundering obligations, suspect or have reasonable grounds to suspect that funds are linked or related to, or are to be used for terrorism, terrorist acts or by terrorist organisations, they should be required to report promptly their suspicions to the competent authorities.

V. International Co-operation

Each country should afford another country, on the basis of a treaty, arrangement or other mechanism for mutual legal assistance or information exchange, the greatest possible measure of assistance in connection with criminal, civil enforcement, and administrative investigations, inquiries and proceedings relating to the financing of terrorism, terrorist acts and terrorist organisations.

Countries should also take all possible measures to ensure that they do not provide safe havens for individuals charged with the financing of terrorism, terrorist acts or terrorist organisations, and should have procedures in place to extradite, where possible, such individuals.

VI. Alternative Remittance

Each country should take measures to ensure that persons or legal entities, including agents, that provide a service for the transmission of money or value, including transmission through an informal money or value transfer system or network, should be licensed or registered and subject to all the FATF Recommendations that apply to banks and non-bank financial institutions. Each country should ensure that persons or legal entities that carry out this service illegally are subject to administrative, civil or criminal sanctions.

VII. Wire transfers

Countries should take measures to require financial institutions, including money remitters, to include accurate and meaningful originator information (name, address and account number) on funds transfers and related messages that are sent, and the information should remain with the transfer or related message through the payment chain.

Countries should take measures to ensure that financial institutions, including money remitters, conduct enhanced scrutiny of and monitor for suspicious activity funds transfers which do not contain complete originator information (name, address and account number).

VIII. Non-profit organisations

Countries should review the adequacy of laws and regulations that relate to entities that can be abused for the financing of terrorism. Non-profit organisations are particularly vulnerable, and countries should ensure that they cannot be misused:

(i)          by terrorist organisations posing as legitimate entities;
(ii)         to exploit legitimate entities as conduits for terrorist financing, including for the purpose of escaping asset freezing measures; and
(iii)         to conceal or obscure the clandestine diversion of funds intended for legitimate purposes to terrorist organisations.

IX. Cash Couriers

Countries should have measures in place to detect the physical cross-border transportation of currency and bearer negotiable instruments, including a declaration system or other disclosure obligation.

Countries should ensure that their competent authorities have the legal authority to stop or restrain currency or bearer negotiable instruments that are suspected to be related to terrorist financing or money laundering, or that are falsely declared or disclosed.

Countries should ensure that effective, proportionate and dissuasive sanctions are available to deal with persons who make false declaration(s) or disclosure(s). In cases where the currency or bearer negotiable instruments are related to terrorist financing or money laundering, countries should also adopt measures, including legislative ones consistent with Recommendation 3 and Special Recommendation III, which would enable the confiscation of such currency or instruments.