Regulatory Alerts2026-01-01
Decision on Doing Business with Persons Connected with a Credit Institution
The Council of the Central Bank of Montenegro issued this decision to regulate credit institutions' transactions with connected persons, mandating that all dealings adhere to market conditions and require management board approval. It explicitly prohibits preferential pricing, riskier collateral, or favorable terms for related parties while banning the purchase of their non-performing assets. Credit institutions must maintain detailed records of these transactions, report them to the central bank, and ensure connected persons are excluded from related decision-making processes.
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