Meeting of the Central Bank of Montenegro Council
09/03/2020
The Council of the Central Bank of Montenegro held its 59th meeting today, chaired by its Governor, Mr. Radoje Žugić.
The Council discussed and adopted the Report on the Central Bank of Montenegro Business Activities and Policy Implementation for December 2019, stating that the activities of the Central Bank of Montenegro (CBCG) during this period were implemented according to the planned commitments set out in the Central Bank’s Work Program for 2019.
The Council determined the Draft Law Amending the Payment System Law. The amendments to the existing Law were necessary due to its complying with the Directive on payment services in the internal market (PSD2). The European Union has adopted the Directive to create the conditions for safer payments, better consumer protection, and fostering the innovation and application of digital technology in payment transactions.
The proposed amendments to the Payment System Law implement the most important novelty of the PSD2 Directive, this being the introduction of new payment services (Payment Initiation Services (PIS) and Account Information Services (AIS)), “opening” the market to new potential payment service providers. Therefore, this Directive allows that third parties (e.g. fintech companies), in addition to banks and other current payment service providers, may become licensed payment service providers. This will lead to increased competition in the payment services market, which will bring significant benefits to payment users, through greater transparency and lower service price. At the same time, it will ensure high-security standards and improve the protection of payment service users.
The harmonisation of national legislation with the said Directive will ensure regulating the payment services providing in Montenegro in the same way as in the EU Member States. This will enable Montenegro’s citizens to use payment services following the highest European standards and security conditions.
The Council proposed to start applying the Law Amending the Payment System Law after the expiration of one year from the date of its entry into force. This would give the payment service providers sufficient time for adequate preparation, i.e. to provide all necessary prerequisites for the smooth application of the Law.
At today’s meeting, the Council adopted the Decision on Granting Approval to Provide a Payment Service to Moneta MNE, a limited liability company with registered office in Podgorica, which will provide a payment service of money transfers through the MoneyGram system.
The Council discussed the Information on activities related to the protection of the euro against counterfeiting, which outlined the activities undertaken by the CBCG in the areas of counterfeiting and detection of euro banknotes and coins counterfeits. In its Progress Report for Montenegro 2019, the European Commission has also recognised significant results of the CBCG in this segment. The Report states that “Montenegro has ensured a high level of acquis alignment” and that “the Central Bank has the required capacity for technical analysis and it provides regular training to cash handlers, police, and the Prosecutor’s Office.”
The Payment System Monitoring Report 2019, introduced to Council members today, stated that the payment system of the CBCG operated smoothly in 2019 and in accordance with the system’s timetable.
Discussing the Banking Ombudsman Annual Report 2019, the Council members got a better overview of the protection of clients and guarantors’ financial rights in our banking system, and of Ombudsman’s activities in protecting the said rights.
The Council also discussed other current issues within its competence.