Montenegro Country Summary
Medium-High Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Montenegro is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Montenegro was undertaken in 2023. According to that Evaluation, Montenegro was deemed Compliant for 2 and Largely Compliant for 19 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 2 with regard to the areas of Effectiveness of its AML/CFT Regime.
Sanctions
Montenegro is subject to international sanctions as part of the European Union's restrictive measures, which include a prohibition on satisfying claims related to contracts affected by United Nations Security Council Resolution 757(1992). Additionally, as a candidate country for EU accession, Montenegro aligns itself with the EU's sanctions policy, which includes measures against individuals and entities in response to situations in countries like Iran and Russia.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 46 |
| World Bank: Control of Corruption Percentile Rank | 52 |
Montenegro is grappling with significant corruption issues that permeate both public and private sectors, leading to widespread concerns among citizens and foreign investors alike. Despite recent government initiatives aimed at combating corruption, including the establishment of a National Council for the Fight against Corruption and high-profile investigations, the effectiveness of these measures is undermined by political instability and a fragmented judicial system.
The country also faces challenges related to organized crime, with mafia-style groups exerting considerable influence over drug trafficking, money laundering, and other illicit activities. While there have been some improvements in law enforcement and economic stability, the overall resilience to crime remains low due to persistent corruption, inadequate legal frameworks, and insufficient support for civil society initiatives aimed at victim protection and anti-corruption advocacy.
Economy
Montenegro's economy is primarily driven by tourism, energy, and agriculture, with tourism alone contributing significantly to the GDP, estimated to be over one-third when including informal activities. The country is undergoing a transformation in its energy sector, focusing on renewable resources and infrastructure development, including major projects like a wind power plant and an underwater electricity cable to Italy, which enhances its energy export capabilities. Despite recent political changes and economic reforms aimed at improving the business environment, Montenegro faces challenges such as high public debt, reliance on a few economic sectors, and ongoing issues with corruption and the informal economy, which pose risks to its investment climate and overall economic stability.
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