Guidance on the identification and verification of beneficial owners

22/07/2024

The Central Bank of Montenegro published the Guidance on the identification and verification of beneficial owners with a view to ensuring a more efficient implementation of the new Law on the Prevention of Money Laundering and Terrorist Financing.

The Guidance represents an important instrument for reporting entities when identifying the beneficial owners of their clients who are legal entities. The document offers a clear guidance and best practices for properly identifying and verifying beneficial owners, thereby improving compliance with the AML/CFT legislation.

It is crucial for the reporting entities to know who the beneficial owners of their clients are so that they can properly assess the level of risk of money laundering and terrorist financing associated with their clients and apply the risk-based approach.

The Guidance was prepared in cooperation with an expert on ultimate beneficial ownership from the International Development Group (IDG), Dr. Ramandeep Kaur Chhina, within the Investment Transparency Activity (ITA) of the U.S. Agency for International Development (USAID).

The Guidance is available at: link.