The new Law on the Prevention of Money Laundering and Terrorist Financing has been adopted

The new Law on the Prevention of Money Laundering and Terrorist Financing has been published on the 12, December 2023 in the “Official Gazette of Montenegro” No. 110/23 and it came into force on 20, December 2023.

This Law is harmonized with international standards in the field of prevention of money laundering and financing of terrorism, as well as with the standards of the European Union (EU).

One of the most significant novelties of this law is the extended list of reporting entities that have to take measures for the prevention and detection of money laundering and financing of terrorism, including public notaries, lawyers, etc.

Comparing the previous law, under the new Law one-member companies are no longer exempt from the requirement to register in the Register of Ultimate Beneficial Owners.

The new Law prescribes the possibility of the video-electronic identification of the client, who is an individual, an entrepreneur, or an individual performing an activity, his legal representative, and an authorized person.

Rulebooks for the implementation of the new Law on the Prevention of Money Laundering and Terrorist Financing will be adopted within three months from the date of entry into force.

Reporting entities will be obliged to harmonize their operations with the new Law within six months from the date of the rulebooks adoption.

Implementation of the new Law on the Prevention of Money Laundering and Terrorist Financing will reduce the possibility of money laundering and terrorism financing, which will improve the investment environment in Montenegro as a safe destination for business and foreign investments.