Montenegro's Governor highlights instant payment risks and integration
Dr Irena Radović, Governor of the Central Bank of Montenegro, emphasized the transformative nature of instant payments for financial markets and European integration at a regional conference. She highlighted the critical need for robust AML/CFT and anti-fraud procedures to manage the associated risks.
Montenegro's path to European payments
Montenegro's accession to SEPA marked a significant milestone, demonstrating successful alignment with complex European regulatory and operational standards.
Governor Radović underscored the strong partnership between the Central Bank of Montenegro and its eleven commercial banks, which has been crucial for navigating demanding payment ecosystem transformations.
The upcoming implementation of the TIPS Clone project, planned for July 2026, represents the next decisive step.
This initiative will significantly improve the efficiency, accessibility, and competitiveness of financial services, benefiting citizens, businesses, and the overall economy, while further anchoring the region within the evolving European digital payments infrastructure.
Navigating the new risk landscape
The transition to instant payments, while boosting efficiency, fundamentally alters the risk landscape by compressing transaction times to seconds.
This rapid processing reduces the window for detecting and intervening in money laundering, terrorist financing, and sophisticated fraud schemes.
Traditional supervisory tools are therefore insufficient, demanding a profound shift in regulatory approach.
Real-time monitoring, advanced analytical systems, and strengthened institutional coordination are now essential safeguards for financial stability and integrity.
The Central Bank of Montenegro has proactively undertaken substantial reforms over the past two years, aligning its AML/CFT and supervisory framework with EU legislation and Eurosystem best practices.
Integration demands vigilance
Montenegro's proactive stance on instant payments and AML/CFT is a commendable step towards deeper European integration.
However, the inherent speed of these systems demands continuous adaptation of supervisory tools, posing a significant challenge for smaller economies.
Sustained cross-border cooperation and investment in advanced analytics will be crucial for long-term resilience and digital trust.