The government of Montenegro appears to have taken heed of the complaints from the gambling sector. These complaints are about the proposed ban on the use of electronic payments. This includes bank transfers wallets and mobile apps. Operators had argued that the ban left transactions at betting outlets as the only option to top up accounts. This increased instead of reducing the risk of money laundering.
The government approved amendments to Article 68f of the Gambling Act in June. It prohibits the use of e-banking, instant gambling payment systems, and mobile payment services such as PayPal and Apple Pay. Instead, it requires customers to transfer funds to online gambling accounts at betting shops. Customers can also transfer funds by card at a betting shop terminal.
Enhancing its AML or anti-money laundering compliance has been the goal of Montenegro. This move comes as Montenegro eyes entry into the European Union. It responds to concerns raised by the financial intelligence monitor (Moneyval) of the Council of Europe. Yet, gambling operators argue that the gambling payment restrictions go against AML recommendations and breach European Union competition rules.
Trade body MontenegroBet‘s Jovana Klisić said the ban would harm operational efficiency and jeopardize employment. A petition against the measures has received 25,000 signatures in five days. This was back in March.
According to MontenegroBet, it was working with international institutions to highlight the negative impacts of the rules and their incompatibility with EU directives. Bodies like Moneyval and the Financial Action Task Force (FATF) have pushed for a reduction in cash transactions to reduce money laundering risks.
