Name
Global FinTech Guide
Country _ Name
Montenegro
SectionTitle
KYC requirements
Body
The know your customer or know your client (KYC) guidelines and regulations for financial services require that professionals try to verify the identity, suitability, and risks involved with maintaining a business relationship.

Legal affairs

National regulatory framework regarding AML and effective date of the regulations

The rules regulating AML and KYC are set out in the AML Law which was firstly introduced in 2014.

National regulator or relevant authority for AML controls

Application of the AML Law is divided between the following entities, depending on the type of entity subject to supervision: CBCG, Agency for Electronic Telecommunications and Postal Services, Capital Market Commission, tax authority, the entity for inspection, the Ministry of Commerce, Montenegro Bar Association, and Notary Chamber.

Customer Due Diligence

Conduct of a typical KYC identification process

Firstly, identification is conducted based on insight into the personal document of the person who is also physically present. In the event the person is not physically present, the obligor must apply intensified actions and measures of knowing and monitoring the party and classify it in the high-risk category. Additional measures may include a phone call with such person or communication via email.

As an exception, the obligor may determine and verify the identity of the client based on a qualified electronic certificate issued by a certification body based in the Montenegro or foreign certificate that is equal to domestic.

Possibility to meet customer due diligence requirements by relying on third parties who are obliged by law themselves to comply with AML regulations

Yes.

Possibility to outsource customer due diligence by contract to other third parties who are not obliged by law to meet AML regulations and rely on these (e.g., WebID, IDnow, PostIdent)

No, it is not.

Presence of a license or registration requirement for the third party in case of outsourcing customer due diligence

There is no special license requirement for such third party. However, the information on KYC may be outsourced only to licensed entities.

Further questions

Entities that could be relied on specifically by law as a third party to comply with AML regulations (regardless of outsourcing)


Yes credit institutions
Yes financial institutions
Yes auditors, external accountants, and tax advisors
Yes notaries and other independent legal professionals
Yes other trust or company service providers
Yes estate agents
Yes other persons trading high-value goods
Yes providers of gambling services


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