Montenegro Country Summary

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 2025. According to that Evaluation, Montenegro was deemed Compliant for 2 and Largely Compliant for 31 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.

Montenegro faces significant challenges related to corruption and crime, with pervasive issues affecting both the public and private sectors. Despite recent efforts to combat corruption, including the establishment of a National Council for the Fight against Corruption and the adoption of new anti-corruption laws, the effectiveness of these measures is hampered by political instability, limited resources, and a fragmented judicial system.

The country also serves as a transit point for various criminal activities, including human trafficking, arms trafficking, and drug smuggling, with organized crime groups exerting considerable influence. While there have been some improvements in law enforcement and judicial investigations, the overall resilience to crime remains weak due to corruption, lack of political will, and ineffective implementation of existing laws.

Montenegro's economy is characterized by a stable, liberal framework with full capital mobility and no restrictions on foreign ownership, positioning it as an attractive destination for investment, particularly in tourism, energy, and agriculture. The government is committed to EU accession by 2028, which drives ongoing reforms and has led to a notable reduction in public debt from 105% of GDP in 2020 to 61.3% in 2024, alongside a 3.2% economic growth rate. Despite these positive developments, challenges remain, including judicial inefficiencies and regulatory transparency, which necessitate that investors engage local advisors to navigate the complexities of the investment landscape effectively.