Montenegro – Is it suitable for your Forex Business?

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MONTENEGRO – Until recently the business of FOREX trading companies was completely unregulated in Montenegro. This kind of business is carried out in Montenegro only by one bank and one company registered as a broker. By its nature, the Bank must be registered as a joint-stock company and have a license to perform financial and investment operations.

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However, a broker company has a lower capacity licence, and I think that this form of business was used exclusively to create an illusion of legitimacy to foreign investors, regardless of the fact that any company could perform the trade. In practice, there was actually no control of FOREX trading.

In January 2018, a new law on the capital market entered into force, and this law regulates all forms of trading in capital, securities, currencies, and the like.

Among other things, the Law will regulate the operations of companies dealing with FOREX trading. It is a law that is compliant with the EU norms, and which predicts the adoption of Rules and Regulations by relevant Government bodies to elaborate this legal matter. However, for now, there is no regulations in Montenegro. The deadline for adoption is 1 year. What we now know is that this kind of business will be able to perform Investment Companies, as a special form of organization, and which will be controlled by the Securities Commission. Each investment company will have to be organized as a joint-stock company, with a certain amount of capital. Persons employed in such company will have to fulfill legal requirements, have the necessary licenses, and the like. The amount of capital will depend on the types of licenses, but this is one of the things that still need to be defined.

In short, we are currently in a situation where we do not have clear regulations regarding work and establishment, and we at Novasigma expect everything to be resolved in the next 6 months. We are the proxies of the group in which the only bank holding the FOREX platform in Montenegro is operating and the bank currently in the situation that they will have to harmonize their acts with new regulations, but it is still not known how.

Is your Forex business searching for a new location?

We at Novasigma are experts in Forex industry. Contact us for more information about Montenegro or other possible jurisdictions where to start or relocate your operations. Our team of lawyers and consultants can advice you and we are here to help with all paper work needed.

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