The Central Bank of Montenegro (CBCG) has officially submitted a request on behalf of the country to join the Single Euro Payments Area (SEPA).

This move, as announced by the CBM, marks a significant advance in the ongoing development and integration of Montenegro’s financial system into the European economic and market landscape.

In addition, the Parliament of Montenegro has approved amendments to the Prevention of Money Laundering and Financing Act, aligning all requirements to secure a positive opinion from the European Payments Council (EPC), thereby expanding the SEPA geographical area to include Montenegro.

Following the submission of the membership request, CBCG Governor Irena Radović remarked that this step represents a historic milestone.

“Joining SEPA will lead to more efficient cash flow management, streamline international business activities, and open up new avenues for trade and investment,” Radović stated.

She emphasized that Montenegro aims to become a more appealing destination for foreign investment, supported by a reliable, efficient, and fully integrated financial system within the European framework.

“SEPA membership will provide tangible benefits for both the citizens and the economy of Montenegro, bringing us closer to our ultimate aim of full EU membership and integration into the European system of central banks,” Radović added.

She also highlighted that joining SEPA would significantly enhance the development of the banking sector, improving its interaction with other components of the economic ecosystem.

“Although adapting to SEPA standards will require additional enhancements to our banking system, we are confident that through dedication and collaborative efforts, we will meet these challenges promptly,” Radović noted.

SEPA is an initiative that began in 2008 and has the backing of the European Commission and the European Central Bank, aimed at increasing the efficiency and reducing transaction costs within payment systems across Europe.

Currently, the SEPA area comprises 36 countries, including all EU member states, as well as the United Kingdom, Iceland, Liechtenstein, Norway, Switzerland, Monaco, San Marino, Andorra, and Vatican City.

The CBM clarified that SEPA membership will eliminate discrepancies in transaction speeds, costs, and processes between national and international payments.

“The payment system employed by SEPA members will enable citizens and businesses to realize transactions within the SEPA area significantly faster and at costs up to six times lower than current rates,” the CBCG stated.

Furthermore, Montenegrin companies will gain easier access to the European market, allowing them to expand their business, boost competitiveness, and foster innovation.

“SEPA membership will have a positive impact on crucial sectors such as tourism and trade, as well as attract foreign direct investment,” the CBCG added.

The EPC, based in Brussels and responsible for standardizing and enhancing payment systems in Europe, will make the decision regarding Montenegro’s SEPA membership.

The CBM mentioned that the EPC will actively evaluate Montenegro in the upcoming period and, following an assessment of compliance with SEPA requirements in cooperation with the European Commission, will render a final decision on Montenegro’s membership.