The European Union and the World Bank Support Montenegro for Entering the SEPA System
02/10/2023
The World Bank delegation, which includes experts in payment system regulation and payment systems cyber security, visits Montenegro this week. The World Bank representatives’ visit is part of the EU-funded project Payment Systems Modernisation, which will support the Western Balkan countries in their harmonisation to EU standards and meeting the requirements for integration into the Single Euro Payments Area SEPA system and joining the SEPA.
At the introductory meeting with the CBCG representatives, Governor Radoje Žugić thanked the World Bank and the European Union for providing support and recognising the importance of the process for the Western Balkans countries. “By supporting our payment systems’ strengthening, you are giving an impetus to regional economic integration and the integration of the Western Balkans region into the European Union”, said Žugić. He added that the CBCG fully harmonised its regulations in the payment system with the acquis communautaire and was working diligently on full convergence with SEPA requirements.
Considering that, in addition to this project, the CBCG also coordinates the Analysis of National Legislation’s (Non)Compliance with the SEPA Requirements project supported by the European Commission, this institution strategically approaches the process of Montenegro’s application to the SEPA. The project would have significant positive effects, primarily through reduced payment transaction costs with SEPA member states, faster and more efficient trade of Montenegrin companies with EU members and attracting FDI. CBCG aims for Montenegro to apply for membership in SEPA by the end of 2024.
Having agreed that the financial sector has become very vulnerable due to accelerated technological development and the daily adoption of new technologies, the interlocutors concluded on a necessity to test the cyber security policies and procedures’ effectiveness and to take measures to mitigate risks according to the findings.
During their stay in Montenegro, the World Bank experts will hold several meetings with the CBCG representatives to collect the necessary information on relevant policies and procedures in payment systems cyber security and eliminate regulatory non-compliance with SEPA requirements. They will also hold three workshops on the financial market infrastructure principles in the context of supervision for payment system operators and payment service providers.