MONTENEGRO Negotiating Team for the Accession of Montenegro

MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 32– Financial Control Bilateral screening: Chapter 32 PRESENTATION OF MONTENEGRO Brussels, 19 June 2013

Chapter 32: Financial Control Protection of the euro against counterfeiting in Montenegro Dejan Levičar Head of NAC in Central bank of Montenegro 2 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control OUTLINE üMontenegro’s experience in cash management, üLegal framework, üInstitutional Cooperation, üInternational Cooperation, üObjectives in protection of the euro against counterfeiting 3 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control In period of Yugoslavia disintegration, Montenegro faced hyperinflation which resulted in high denominations of the national currency at the time - Dinar 4 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control Activities of the Central Bank of Montenegro Ø Prevention of fraud and counterfeiting • • public campaign aimed at promoting currency protection; training for institutions in Montenegro dealing with cash Ø High security standards for cash transport • Use of armoured vehicle, escorted by at least two police vehicles and armed AT police force and vault officers Ø Result of undertaken activities • • The correspondent bank to which DEM banknotes were delivered did not report any counterfeit banknotes; Entire DEM exchange was performed very efficiently and safely; 5 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control COUNCIL FRAMEWORK DECISION 2000/383/JNA COUNCIL FRAMEWORK DECISION 2001/888/JHA CRIMINAL CODE TITLE TWENTY-THREE CRIMINAL OFFENCES AGAINST PAYMENT TRANSACTIONS AND BUSINESS OPERATIONS Counterfeiting Money Article 258 (1) Anyone who produces imitation currency with the intention to put it into circulation as genuine or who alters genuine currency to increase its value shall be punished by a prison term from two to twelve years. (2) Anyone who obtains, keeps or transports counterfeit currency with the intention to put it into circulation as genuine or who puts counterfeit currency into circulation shall be punished by a prison term from two to ten years. (3) Where as a result of the offence under paras. 1 and 2 above counterfeit currency was produced, altered, put into circulation or obtained and where its value exceeds fifteen thousand euros or an equivalent amount in a foreign currency, the perpetrator shall be punished by a prison term from five to fifteen years. (4) Anyone who receives counterfeit currency as genuine and who after learning it is counterfeit puts it into circulation or who knows counterfeit currency was produced, or that counterfeit money was put into circulation and does not report it shall be punished by a fine or a prison term up to one year. (5) Counterfeit currency shall be confiscated. (6) Counterfeit currency within the definition of this criminal offence shall also be understood to mean currency produced in the same manner and of the same material as genuine currency, in breach of regulations governing production of 6 currency. MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control Central Bank of Montenegro Law (˝OGM“ 40/10, 46/10, 6/13) Protection of Banknotes and Coins against Counterfeiting Article 25 Banks and financial institutions shall submit to the Central Bank any suspicious samples of banknotes and coins. The Central Bank shall temporary replenish all suspicious samples of banknotes and coins received in payment system transactions. The Central Bank shall perform technical analysis of banknotes and coins suspected of being counterfeited and it shall cooperate with competent authorities and institutions in Montenegro and abroad on taking measures to detect and suppress currency counterfeiting. The Central Bank shall prescribe the manner of handling suspicious samples of banknotes and coins. 7 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control COUNCIL REGULATION (EC) No 1338/2001; COUNCIL REGULATION (EC) No 44/2009; COUNCIL REGULATION (EC) No 1339/2001; COUNCIL REGULATION (EC) No 45/2009; REGULATION (EU) No 1210/2010; DECISION OF THE EUROPEAN CENTRAL BANK (ECB/2010/14) Decision on Authenticity and Fitness Checking and Recirculation of Euro Notes and Coins (“Official Gazette of MNE”, no. 35/11) Decision on Handling of Suspect Euro Notes and Coins and Other Activities Aimed at Protecting the Euro Against Counterfeiting (“Official Gazette of 8 MNE”, no. 35/11) MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control Decision on Authenticity and Fitness Checking and Recirculation of Euro Notes and Coins (“OGM” 35/11) The implementation covers a few stages: üI Meetings and explanations to cash handlers; üII Business Plans made by cash handlers; üIII Testing of equipment from the ECB and OLAF/ETSC list and publishing the list of successfully tested machines on the CBCG website; üIV Cash handler's procurement of successfully tested machines; üV On-site equipment testing; üVI Organized education and training for cash handlers carried out by the National Counterfeit Centre 9 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control üNCC, NAC and CNAC are established in the Central Bank of Montenegro üNCK (NCO) is established in the Police Administration 10 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Financial Control Chapter 32: Structures for Euro Protection Who does what NATIONAL LEVEL Montenegro EU LEVEL BANKNOTES NAC (National Analysis Centre) CBM ECB/CAC (Counterfeiting Analysis Centre) COINS CNAC (Coin National Analysis Centre) CBM OLAF/ETSC (European Technical & Scientific Centre) COORDINATION (Banknotes and coins) NCO (NCK) (National Central Office) Police EUROPOL AUTHENTICATION (Banknotes and coins) Central Bank of Montenegro ECB ETSC TECHNICAL ANALYSIS Law enforcement agencies MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union 11 Chapter 32: Financial Control

Chapter 32: Financial Control Some of the Police actions in cooperation with the Prosecution office and the Central Bank of Montenegro • 2006; Operation „Trezor-Vault“ 714, 000, 00 € & 100. 500, 00 $; • 2008; Operation „Boston“ 15. 000$ • 2008; Operation „Tip“ 2. 300€ • 2008; Operation „ Neighbours“ 9. 000€ 12 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control Protocol on Cooperation between the Central Bank of Montenegro, Police and Supreme State Prosecution • Exchange of information; • Efficiency improvement in delivering of suspicious banknotes and coins for technical analysis 13 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control EUROPEAN COMMISSION/OLAF Pericles & EURO Protection Ø PROTECTING THE EURO AGAINST COUNTERFEITING TACTICAL, TECHNICAL AND LEGAL PERSPECTIVES 4 - 6 of JUNE 2003 IN LISABON Ø PROTECTING THE EURO, TACTICAL AND TECHNICAL TRAINING – 30 JUNE TO 2 JULY 2007 IN PODGORICA, MONTENEGRO Ø TECHNICAL ANALYSIS TRAINING FOR COIN EXPERTS – 10 -12 MARCH 2009 PESSAC Ø TECHNICAL TRAINING: “STRENGTHENING THE PROTECTION OF THE EURO IN THE FINANCIAL SECTOR” – 12 -14 JULY 2009 PODGORICA, MONTENEGRO Ø A COMMUNITY STRATEGY TO PROTECT EURO IN THE MEDITERRANIEN AREA - 10 -12 OCTOBER 2012 DUBROVNIK Ø ETSC TECHNICAL TRAINING ON ANALYSIS OF COUNTERFEIT EURO COINS - 30 OCTOBER 2012 CETINJE, MONTENEGRO. . . 14 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control Central Bank of Montenegro-Agreements Ø 6 May 2008 – Cooperation Arrangement with the European Commission/European Anti-Fraud Office (OLAF); Ø 20 January 2009 – Cooperation Agreement with the ECB 15 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

Chapter 32: Financial Control Objectives to be attained. Convergence Dynamics • Reaching full compliance with EU legislation governing cash management and protecting the integrity of the euro, • Dynamics of alignment: gradual adjustment until Montenegro’s Accession to the EU and the EMU. 16 MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial Control

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