In a report published today, the Council of Europe’s anti-money laundering body MONEYVAL calls on the Montenegrin authorities to further strengthen measures to combat money laundering and the financing of terrorism. Since 2015, when MONEYVAL last provided a comprehensive evaluation of Montenegro, the country has taken a number of actions to strengthen its legal and institutional framework to tackle money laundering and the financing of terrorism (AML/CFT).
The report assesses the country’s level of compliance with the AML/CFT standards set by the Financial Action Task Force (FATF). MONEYVAL has found that in relation to the 11 areas under assessment (i.e. Immediate Outcomes), Montenegro obtained a substantial level of effectiveness in two areas, i.e. in understanding money laundering (ML) and terrorist financing (TF) risks, as well as in international co-operation where the authorities are commended for their efficient and effective cooperation with respect to both evidence and intelligence exchanges.
In the other nine areas Montenegro was considered to have moderate levels of effectiveness, where major improvements are required.
Regarding ML/TF risks, the report finds that authorities in Montenegro have a reasonable understanding of ML risks, with key authorities able to articulate clear views on TF threats. MONEYVAL recommends enhancing the understanding of specific money-laundering threats related to cash usage and informal economy, high-level corruption, misuse of legal entities, as well as the potential terrorism-financing risks in the banking sector, money/value transfer services, non-profit organisations, cross-border cash movements, and new technologies. Additionally, vulnerabilities within important financial and non-financial sectors should be better understood and addressed.