The Montenegrin Criminal Code recognises both money laundering and financing of terrorism as standalone criminal offences. Predicate crimes that are committed either in or outside Montenegro can support a money laundering charge brought in Montenegro.
The penalties prescribed in the Criminal Code for Money laundering are:
- imprisonment from six months up to 12 years depending on the sum of the laundered money and circumstances at hand as well as a fine; and
- the funds which were laundered will be confiscated.
The penalties prescribed in the Criminal Code for Financing terrorism are:
- imprisonment from one to ten years and the funds used to fund terrorism will be confiscated.
Legal entities can in principle bear criminal liability under Serbian law. Namely, the Responsibility of Legal Entities Act states that if a legal entity has enriched itself through the proceeds of a crime committed by an employee or a director, the legal entity can be sanctioned with a fine. The fine cannot be less than twice the amount of the damages or more than one hundred times the amount of the damages; in monetary terms, at least EUR 1,000 and up to EUR 5,000,000, and depends on the length of the jail time prescribed.
The AML Act provides a range of sanctions for non-compliance with the key requirements, such as customer checks, record-keeping, and suspicious transaction reporting. The sanctions take the form of fines and penalties which vary depending on the type of the infringement and range from EUR 2,000 to EUR 20,000, for legal entities and EUR 400 to EUR 2,000 for individuals.