On 26 October 2026, Montenegro’s government enforced a new regulatory measure prohibiting cash transactions exceeding €10,000 for purchases of real estate, vehicles, and loan disbursements. The rule, embedded in the Law on Prevention of Money Laundering and Terrorism Financing, aims to curb tax evasion, enhance transaction transparency, and align with EU anti-money laundering directives. The measure applies to both residents and non-residents, requiring all transactions above the threshold to be executed through licensed financial institutions with full audit trails. Non-compliance carries fines up to 20% of the transaction value and potential criminal liability for intentional structuring.
Key Takeaways
- Scope and Threshold: The €10,000 limit covers single transactions and linked operations, including real estate acquisitions, vehicle purchases, and loan agreements. Parties must use bank transfers, certified checks, or electronic payment systems to remain compliant.
- Enforcement and Penalties: The Tax Administration and Customs Authority will conduct targeted audits on high-value cash movements. Penalties range from 10% to 20% of the cash amount, with repeated violations triggering criminal investigations under the Criminal Code.
- Impact on Market Participants: Real estate agents, car dealers, and lending institutions must update KYC procedures and implement real-time transaction monitoring. Citizens are advised to retain banking records for at least five years to substantiate the source of funds during tax inspections.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement