Montenegro to rethink gambling payment restrictions

The government will reassess its ban on electronic payment methods.

Montenegro.- The government of Montenegro appears to have taken heed of the complaints from the gambling sector about its proposed ban on the use of electronic payments, including bank transfers wallets and mobile apps. Operators had argued that the ban, which left transactions at betting outlets as the only option to top up accounts, increased rather than reduced the risk of money laundering.

The government approved amendments to Article 68f of the Gambling Act in June, prohibiting the use of e-banking, instant payment systems and mobile payment services like PayPal and Apple Pay, and requiring customers to instead transfer funds to online gambling accounts at betting shops or by card at a betting shop terminal.

Montenegro has been aiming to enhance its anti-money-laundering (AML) compliance as it eyes European Union (EU) entry due to concerns raised by the Council of Europe’s financial intelligence monitor, Moneyval. However, gambling operators argue that the payment restrictions go against AML recommendations and breach European Union competition rules. 

Jovana Klisić of trade body MontenegroBet said the ban would harm operational efficiency and jeopardise employment. A petition against the measures received 25,000 signatures in five days back in March. 

MontenegroBet said it was working with international institutions to draw attention to the negative impacts of the rules and their incompatibility with EU directives. Bodies such as Moneyval and the Financial Action Task Force (FATF) have pushed for a reduction in cash transactions to reduce money laundering risks.