71st Meeting of the Central Bank Council


31/07/2020

At the 71st meeting of the Council of the Central Bank of Montenegro, chaired by the Governor, Mr. Radoje Žugić, the Council passed the Decision on revoking the approval to the payment institution “Diners Club International Montenegro” d.o.o. Podgorica for the provision of payment services - issuance and/or acceptance of payment instruments. The approval was revoked because this payment institution neither maintained the amount of own funds at the level prescribed by the Payment System Law nor did it implement measures ordered by the CBCG to comply its operations with the law.


At this meeting, the Council discussed and adopted the Report on Business Operations and Policy Implementation of the Central Bank of Montenegro for May 2020. The Report stated that the activities of the CBCG conducted its activities in accordance with the planned obligations.


Moreover, at the meeting held today, the Council passed the Decision Amending the decisions and other acts of the Central Bank of Montenegro due to the change in the obligation to use the seal by companies. This decision was made due to harmonising with the new Law on Companies, which abolished the obligation to use the seal by companies, to reduce business barriers. Therefore, the novelty of the decision adopted today is that the obligatory use of seals in all decisions and other acts of the CBCG will be replaced with the possibility of using seals by business entities. When those persons operate electronically, they are obliged to use an electronic seal.


The Council also adopted the Decision on the structure, more detail conditions and manner of transaction account opening and closing. The new amendments, inter alia, define more precisely the terms “resident” and “non-resident”, to apply the Decision more clearly. Furthermore, the Decision determines the special treatment of transaction accounts in case of banks’ status changes, to facilitate their operations in these cases. In addition to the aforesaid, this decision prescribes a set of amendments simplifying the procedures for opening and closing a transaction account.


The Council adopted the Decision Amending the Decision on own funds of payment institutions and the Decision Amending the Decision on own funds of electronic money institutions. These decisions prescribe the obligation of payment institutions and electronic money institutions to report quarterly to the CBCG on the amount of own funds and minimum requirements for own funds. In this way, the CBCG would be able to monitor the level of own funds of payment and electronic money institutions more efficiently, which is an important parameter for monitoring the security and stability of their operations.