Montenegro Struggles to Combat Money Laundering and Financial Crimes
Despite efforts to improve its financial intelligence capabilities, Montenegro still faces significant challenges in combating money laundering and other financial crimes.
Low Reporting of Suspicious Transactions
According to a recent report by the Ministry of the Interior, entities reporting suspicious transactions have seen a slight increase over the past three years, but the number remains low. In 2020, obligors such as banks, exchange offices, and trust funds reported 234 suspicious transactions, followed by 285 in 2021 and 234 in 2022.
Lack of Central Registries
The report highlights the lack of central registries for bank accounts and beneficial owners, which hinders financial intelligence efforts. This makes it difficult for authorities to effectively track and combat financial crimes.
Insufficient Investigations and Prosecution
Montenegro’s track record on money laundering investigations has improved slightly over the past three years, with 80 financial investigations initiated between 2016 and 2022. However, only two were successfully completed, highlighting the need for more effective investigation and prosecution methods.
Limited Asset Confiscation
In addition, Montenegro’s legal framework for asset confiscation is still in need of improvement. While the special prosecutor’s office has achieved some permanent confiscations, no final court decisions on asset confiscation were identified in 2021. The country also lacks the ability to confiscate assets of equivalent value when proceeds from criminal activities cannot be traced.
Recommendations for Improvement
Experts have called for a more comprehensive approach to combating money laundering and financial crimes, including:
- Improving the legal framework for supervision
- Strengthening controls on reporting entities
- Increasing public awareness campaigns
- Enhancing transparency and cooperation between government agencies and civil society
“We need to improve our laws and procedures to ensure that we can trace and confiscate the proceeds of criminal activities,” said a senior police officer.
European Commission’s Expectations
The European Commission has also highlighted Montenegro’s need to improve its anti-money laundering efforts. The country is expected to continue working towards improving its financial intelligence capabilities and combating money laundering and financial crimes.
Consequences of Inaction
Experts warn that the lack of effective measures to combat money laundering and financial crimes could have serious consequences for Montenegro’s economy and society.
In summary, Montenegro still faces significant challenges in combating money laundering and other financial crimes. The country needs to improve its legal framework, strengthen controls on reporting entities, and increase public awareness campaigns to effectively track and combat financial crimes.