The European Union recently released its 2024 enlargement report, which assesses the progress of candidate countries, including Montenegro, in aligning with EU standards across various sectors. The report stresses the need for Montenegro to improve its gambling regulations and anti-money laundering measures, highlighting ongoing issues and recommending urgent reforms. The report also outlines the steps Montenegro has taken toward EU membership, particularly in improving regulatory frameworks to meet EU standards.
Montenegro’s EU ambitions
Montenegro, which began its journey toward EU membership in 2012, aims to join by 2028. Despite progress in aligning its laws with EU standards, Montenegro still faces obstacles. The country has been in the spotlight this year following controversial amendments to its gambling laws that restrict the use of digital payment methods such as Apple Pay, PayPal, and mobile banking for online gaming transactions. These restrictions sparked backlash from industry stakeholders and the public, as well as concerns from the EU regarding Montenegro’s commitment to digital and financial reforms.
In its report, the EU highlights Montenegro’s legislative efforts, such as amendments to the Law on the Prevention of Money Laundering and Financing of Terrorism and the Law on Games of Chance. However, it stresses that these changes are only partial steps toward EU alignment, particularly in the context of financial regulation in high-risk sectors like gambling. The EU urges Montenegro to further strengthen its anti-money laundering policies, specifically targeting non-financial sectors and gaming, to align more closely with EU directives.
Controversial payment ban and EU alignment
The recent amendments to Montenegro’s gambling laws have introduced a ban on electronic payment methods for gaming transactions, requiring users to rely on cash or specific terminal-based transactions. The move, reportedly intended to reduce illegal gambling activity, has raised concerns about the country’s adherence to EU policies. Critics argue that these restrictions conflict with EU standards, including the Payment Services Directive (PSD2), which encourages digital payment options across member states.
The EU’s report stresses the importance of financial accessibility and digital integration, expressing concerns over Montenegro’s deviation from these standards. By restricting electronic payments, Montenegro risks isolating itself from the EU’s digital market, an essential aspect of future EU membership.
EU recommendations
To advance its EU membership ambitions, Montenegro must address the Commission’s recommendations. In its enlargement report, the EU calls for further alignment of Montenegro’s gambling laws with EU directives and closer cooperation with international financial standards. Specifically, it suggests revising the Law on Games of Chance to support a more transparent, financially inclusive framework that adheres to EU policies on market competition and payment freedoms.
The EU also stresses the need for Montenegro to implement more robust anti-money laundering oversight in its gaming industry. This includes tightening regulations and ensuring effective enforcement of the Law on Prevention of Money Laundering. The report highlights that while Montenegro has avoided the Financial Action Task Force’s “grey list” for now, failure to continue strengthening its regulatory framework could risk future sanctions or monitoring.
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