The European Union’s 2024 enlargement report has highlighted Montenegro’s progress toward EU membership while stressing significant challenges, particularly in gambling regulation and anti-money laundering practices. The report underlines that substantial reforms are necessary for Montenegro to align with EU standards, emphasizing the urgent need for policy improvements in these areas.
Montenegro, which began its EU accession process in 2012, aims to join the bloc by 2028. While the country has made strides in harmonizing its legal frameworks with EU policies, obstacles remain. One major issue this year involved amendments to Montenegro’s gambling laws that limit the use of digital payment methods—including Apple Pay, PayPal, and mobile banking—for online gaming. These restrictions, intended to curb illegal gambling, faced backlash from industry players, the public, and raised EU concerns over Montenegro’s commitment to digital and financial integration.
The EU report acknowledges legislative efforts such as amendments to the Law on the Prevention of Money Laundering and Financing of Terrorism and updates to the Law on Games of Chance. However, it stresses that these initiatives are incomplete steps toward full EU alignment, particularly in sectors prone to financial risks, like gambling. The EU calls for stronger anti-money laundering measures to better align Montenegro’s financial practices with EU standards.
Montenegro’s recent decision to ban electronic payment methods for online gaming transactions has sparked concern. The change, aimed at combating illegal gambling, mandates cash or terminal-based transactions only. Critics argue that this approach conflicts with EU policies such as the Payment Services Directive (PSD2), which promotes the use of digital payments to enhance financial inclusivity and market accessibility.
The EU’s enlargement report points out that by limiting digital payment options, Montenegro risks undermining its integration with the EU’s broader digital economy, a crucial component of EU membership. Financial accessibility and the adoption of digital payment systems are emphasized as priorities to align with EU policies and practices.
To progress toward EU membership, Montenegro must heed the Commission’s recommendations outlined in the 2024 report. The EU urges Montenegro to amend its gambling regulations to align with EU directives, enhancing transparency and adopting a more inclusive financial approach that adheres to market competition and payment freedoms.
The report also calls for Montenegro to fortify its anti-money laundering oversight in the gambling sector. This includes implementing stricter regulations and ensuring that the Law on Prevention of Money Laundering is effectively enforced. Although Montenegro has managed to avoid being placed on the Financial Action Task Force’s “grey list” so far, the report warns that insufficient progress could lead to sanctions or increased international monitoring in the future.
For Montenegro to maintain its trajectory toward EU membership, comprehensive reforms in the gambling sector and stronger anti-money laundering measures are essential. Aligning its financial and digital policies with EU standards will be critical for fostering trust and demonstrating its commitment to the principles and regulations of the European Union.
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