Regulatory Alerts2026-01-01
Decision on Supplementary Supervision of Intra-Group Transactions and Risk Concentration within a Financial Conglomerate
The Council of the Central Bank of Montenegro issued this decision to mandate supplementary supervision of intra-group transactions and risk concentration across financial conglomerates. Regulated entities and mixed financial holding companies must report significant cross-entity transactions, adhere to materiality thresholds, and apply arm's length pricing or enhanced internal controls to mitigate contagion and regulatory arbitrage. The Central Bank is empowered to enforce additional reporting, strengthen risk management frameworks, and set compliance timelines based on the conglomerate's structural complexity and cross-sector exposures.
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