New set of indicators to help in the efforts of the Banking Sector of Montenegro to fight corruption
Igalo, 21 June 2007
The new set of indicators should help in further reducing of arbitrary interpretations and it should contribute to a better estimate whether a transaction is suspicious or not, which is an important precondition for a successful anti-money laundering camapaign.
“It is extremely important that the authorized personnel who do correspondence with AMLP be well trained in detecting of suspicious financial transactions based on the new, amended list of indicators. This because the AMLP very often starts processing certain cases upon the reports received by authorized personnel within a legal entity. Processing of cases means carrying out a number of necessary actions in order to bring the case up to the level of usability for the police and the judiciary”, said Mr Predrag Mitrović, Director of the Agency for Money Laundering Prevention of the Government of Montenegro in his opening speech.
“In the first three months of this year the Agency for Money Laundering Prevention has temporarily blocked 16 transactions in total amount of almost € 12 million of which € 10,9 million referred to real estates turnover”, said Mr. Mitrović. “The Agency has submitted all of these 16 matters to the authorized organs so the number of opened cases has increased to eight percent in relation to the same period last year”, he added.
As Mr. Mitrović explained, a new version of the Law on prevention of laundering money and financial crime has also been determined and it will soon go through adoption procedures.
“Basic novelties regarding this Law will be defining of a real ownership over legal entities, a possibility to give directives to the legal entities for continuous monitoring of certain accounts in a certain period of time, ban for operating with so-called pro formae banks, increased follow-up of politically exposed persons, possibility of temporary blocking of suspicious transaction upon foreign financial secret services’ request, as well as a possibility to submit a request to foreign financial secret services for temporary blocking of a suspicious transaction”, Mr. Mitrović said.
Supreme State Prosecutor of the Republic of Montenegro Ms. Vesna Medenica emphasized the extreme importance of listing of all the indicators and involving of all the stakeholders who are, in this way or another part of the processes which might include money laundering, in order to get them familiarized with the ways how to contribute to a better prevention of legalization of illegally earned capital.
“We will not have a minimum of tolerance in cases of overlooking or misidentification of money laundering, and all those who might say that they do not recognize it will enter a zone of criminal legal responsibility, and that is why we are here today, to get familiar with all the money laundering indicators. Their importance will as well count for all the other segments of corruption and organized crime. Currently, Montenegro is a very interesting region for foreign investors and we are all observing the situation from our positions, and it will be of utmost importance that we direct our full professional strength on following of money laundering problems. I am saying it in order to emphasize a large role of institutions which are dealing with money transactions, for they also need to be aware that the money coming from elsewhere might also be illegally earned”, said Ms. Medenica.
Mr. Garret Tankosic Kelly, UNDP Resident Representative a.i./UN Interagency Focal Point in Montenegro explained the global perspective: “Estimates of the size of the money laundering problem total between the $500 billion and 1 trilion annually world - wide. According to the U.S. Department of State and International Monetary Fund (IMF), estimated magnitude of money laundering is between 3 and 5 percent of global gross domestic product (GDP), or at least $600,000 billion. And, in relevance of this pattern to the national context please note that Montenegrin GDP for the 2005 was € 1.644 billion”.
Mr. Tankosić Kelly also said that one of the aspects of the current UNDP’s Anti-Corruption Project in Montenegro is to develop the capacity of government institutions with anti corruption mandate, and to serve as the vehicle for driving the implementation of the Action Plan forward. “Its second aspect is to build up the partnership between the representatives of state, civil and private sector”, said Mr. Tankosić Kelly, adding that “the Project activities have very much in commonwith other UNDP areas of intervention in the country, such as: poverty reduction, sustainable development, public administration, sustainable planning, etc. through building of cross-sectoral linkages and regional networking.”
Mr. Tankosić Kelly also mentioned that
the UNDP intiated a partnership with the UNODC (UN Office on Drugs and Crime), which will stipulate the engagement of specialized resources of UN system to assist Montenegro in combating these social anomalies.
