- Conflicts with EU law: As the country progresses in its accession to the EU, its laws conflict with five key EU legal provisions, raising concerns about their compatibility with the EU legal framework.
- Various electronic payment methods that violate global financial and payment standards, such as electronic banking and mobile payments, have been effectively disabled.
- More than 25,000 signatures, representing about 8% of the nation's voters, were collected in just five days, demonstrating widespread public opposition.
- This business sector accounts for 2% of employment in Montenegro and faces significant risks due to the operational and economic consequences of the new legal changes.
- Leading industry experts and think tanks in the EU have already raised concerns about the unfavorable solutions introduced in these provisions.
A legislative battle is currently underway in the Western Balkans and is having ripples through Europe's fintech community. Montenegro's recent gambling law amendments, particularly Article 68f, have caused significant debate. This change focuses on restricting deposit methods for online player accounts and is not just a local issue, but resonates with broader EU legal standards and global financial practices.
We spoke to Jovana Kulišić, head of Montenegro BET, the country's leading industry association in this field. Mr. Krišić has many years of experience and a deep understanding of both the domestic and international aspects of business, and he has a strong understanding of the impact of regulatory changes in Montenegro and ongoing institutional reforms to mitigate such unfavorable regulatory treatment. offers a unique perspective on the struggle of
Article 68f of Montenegro and apparent conflict with EU legal norms
Mr Krišić, could you briefly explain the problem with Article 68f?
-This provision is in clear contrast to several EU directives and regulations. It directly opposes Article 72 of the Montenegro-EU Stabilization Association Agreement, which obliges cooperation with EU member states. The Payment Services Directive (PSD2), which aims for an integrated market for electronic payments, is also inconsistent with this law. PSD2 guarantees a level playing field for both existing and new market participants and promotes consumer protection and transparency of payment services across the Union. However, Article 68f effectively denies electronic payment companies access to her EU market.
Furthermore, this also violates the EU 4 and 5AML directives, where cash transactions are considered high risk. Restricting transactions to cash or card payments at a physical location leaves money laundering risks inadequately addressed, and small cash transactions, often less than €1,000, are used for money laundering purposes. There is a possibility that Montenegro's decision therefore contradicts the EU's vision of a digitally integrated financial system for both member states and candidates.
The disputed article also overlooks the obligation under Montenegro's Administrative Procedures Law, which mandates public consultation on the preparation of laws and strategies, a step seemingly avoided in this case.
Compliance with the law in its current form also requires many locations to meet a minimum distance from schools in order to collect cash as a deposit, calling into question the sustainability of this controversial and illogical provision. It is being watched.
Macroeconomic impact: 2% of jobs in Montenegro are at risk
What broader impact will this legal change have on business and the Montenegrin economy?
The industry faces a double-edged sword of operational inefficiency and potential economic impact. Since this industry directly and indirectly employs almost 2% of the country's workforce in an environment of 15% unemployment, any negative impact on this industry would have extremely detrimental and far-reaching consequences. There is a possibility. The abolition of electronic banking and deposit newsstands, despite compliance and transparency, not only affects operational efficiency, but also puts jobs at risk and reflects a negative impact on the Montenegrin economy as a whole.
United Stand: 25,000 Voices Unite for Fair Regulatory Treatment
Given the challenges posed by Article 68f, what measures are being pursued to address these concerns?
Our approach is comprehensive and proactive. Montenegro BET, our industry association with decades of experience in pursuing and implementing EU-compliant regulatory solutions, has already initiated a constitutional review, raising concerns about the unconstitutionality of this provision. Masu.
Importantly, we mobilized public support, culminating in the submission to Congress of a petition that gathered more than 25,000 signatures in just five days, representing approximately 8% of the national electorate. . This remarkable show of public support not only highlights widespread concern, but also demonstrates the potential economic impact of such legislation and could result in significant job losses in our industry. It also highlights the risks of
Additionally, we are working with key international organizations to draw attention to how this law conflicts with EU directives and global anti-money laundering standards. Our most important goal is to realign Montenegro's regulatory framework to both EU and global financial norms, ensuring a fair and transparent environment for the industry.
Montenegro's isolated move within globally accepted financial practices
How does Article 68f align with global financial regulatory practice?
This article is an outlier in terms of global trends. Internationally, there is a clear shift towards reducing cash transactions in favor of electronic payments, as advocated by organizations such as MONEYVAL and FATF. The global financial community is adopting digital solutions to increase transparency and efficiency. Montenegro's move will therefore not only isolate it from EU practices, but also from the direction of the international financial community.
In 2021, the European Commission called on Montenegro to step up efforts to investigate and prosecute money laundering. The payment limitations established by Article 68f pose a significant risk of placing Montenegro in the category of countries with an increased risk of money laundering and terrorist financing.
Furthermore, in 2022, the European Banking Authority (EBA) emphasized the need for all EU citizens, and by extension countries seeking to join the EU, to have access to basic online banking services. This directive is in line with the trend of increasing financial transactions being digitized, an area in which electronic and mobile banking services are approaching the status of a commodity. However, Article 68f of the Law on Games of Chance in Montenegro excludes these important services and is inconsistent with the EU position on modern financial inclusion.
What are the future prospects for Montenegro's fintech industry in light of these changes?
It's at a crossroads. I can say this without exaggeration. Our immediate focus is to reduce the negative impact of this legislation. However, looking to the future, we see this communication crisis as an opportunity to align Montenegro's financial practices with EU standards. It's not just about amending a single law. It is to ensure that Montenegro's financial and regulatory framework is fair, competitive and beneficial for the industry.
