The sub-areas under Chapter 4 are:
1. Capital movements and payments
2. Payment system
3. Prevention of terrorism, money laundering and terrorism financing
When was the chapter opened?
Negotiating Chapter 4 – Free Movement of Capital was officially opened on June 24, 2014.
Montenegro is working intensively to meet European standards and create conditions for closing this chapter related to:
1. Alignment of all legislation with the EU acquis, demonstrating that it will be able to be implemented on the day of accession and ensuring that the remaining restrictions on capital movements are removed
2. Align the Law on Payment System and demonstrate that it will be able to implement regulations 924/2009 and 260/2012
3. In the areas of money laundering and terrorist financing, complete alignment with EU acquis and ensure adequate administrative capacity to implement the acquis through the balance sheet.
What are the activities in the coming period?
The focus of activities in the forthcoming period will be harmonization with the EU acquis on capital movements and payments, including the acquisition of property rights, as well as payment systems, strengthening institutional capacity to audit all reporting entities, improving cooperation between all entities, and quality of reporting, ensuring independence and efficiency of relevant institutions.
It is also necessary to take into account the potential money laundering risks associated with investment schemes in the national risk assessment, based on EU anti-money laundering rules, and to take the necessary measures to mitigate these risks.
Institutions / organizations participating in the negotiating group?
The negotiator for Chapter 4, as well as the head of the Working Group are from the Central Bank of Montenegro, while the contact person for the Working Group is selected from the Office for European Integration.
In addition to the representatives of the Central Bank of Montenegro, the members of the Working Group are representatives of the following bodies and organizations: Ministry of Finance, Police Administration – Sector for Prevention of Money Laundering and Terrorist Financing, Capital Market Commission and Insurance Supervision Agency.
What is the benefit for Montenegro from this chapter?
Freedom of movement of capital will enable Montenegrin citizens to perform a wide range of activities abroad: opening bank accounts in foreign banks, buying shares of foreign companies, investing, buying real estate and they will be provided with a wider choice of financial institutions they want to do business with. For companies, this freedom implies the possibility of investing and acquiring ownership rights over foreign companies, as well as exercising an active role in their management.
For companies engaged in financial services, the freedom of movement of capital enables them to successfully perform cross-border activities. The efficiency of the financial services sector would be undermined if there were restrictions on the movement of capital between the Member States of the Union.