IISES International Academic Conference, Rome

A SIGNIFICANT STEP TOWARD EUROPEAN UNION: STRENGTHENING MONTENEGRO'S COMMITMENT TO COMBATING MONEY LAUNDERING

SONJA CINDORI, TAJANA PETROVIĆ

Abstract:

Negotiations for Montenegro's accession to the European Union began in June 2012. As Montenegro strives to achieve full EU membership, it faces several challenges, particularly regarding the effectiveness of its regulatory framework for preventing money laundering and terrorist financing. The changes necessary for harmonization with the EU acquis are becoming apparent, and the results will primarily be reflected in statistics related to suspicious money laundering and terrorist financing transactions. The effectiveness of recent legislative changes will be evaluated by analyzing key provisions of current laws concerning national risk assessment, the scope of obligated entities, reporting of transactions to relevant authorities, as well as estimating their impact on the seizure and confiscation of illegally acquired assets. In 2019, the Financial Intelligence Unit of Montenegro underwent a significant organizational restructuring. It transitioned from an administrative model established since its inception to a police model with all its specific characteristics. While every system has pros and cons, it is crucial to ensure that the intent to detect illegal activities does not compromise the system's effectiveness. Therefore, the adage "less is more" becomes relevant. Such an attitude should form the ground for understanding the concept, or rather the essential base of due diligence, highlighting the need to increase awareness about the importance of money laundering prevention and, consequently, the vital nature of risk assessment.

Keywords: money laundering, due diligence, suspicious transactions, risk assessment, corruption, drug