1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 17– Economic and Monetary Policy Bilateral screening: Chapter 17 PRESENTATION OF MONTENEGRO Brussels, 25 February 2013

2. 2 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy CURRENCY LEGISLATION AND STANDARDS IN MONTENEGRO Dejan Levičar Head of NAC in Central bank of Montenegro

3. 3 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy OUTLINE OF THE PRESENTATION Montenegro experience in cash menagement, International Coorporation, Legal framework, Objective of the Central bank of Montenegro.

4. 4 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy Activities of Central Bank of Montenegro  Prevention of fraud and counterfeiting public campaign aimed at promoting currency protection; training for institutions in Montenegro dealing with cash  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  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. 5 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy - Cash menagement ; - Protection of the euro against counterfeiting. - Conferences, seminars, meetings, trainings and bilateral coorporation; - exchange of information; - assistance and coorporation between national and international authorities. - ECB (2002); - Deutsche Bundesbank (2005, 2012 ); - Bank de France (2004, 2006); - Netherlands Bank (2007); - Bank of Slovenia (2010); - National bank of Slovakia (2011), etc. International Coorporation

6. 6 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy European Commission/OLAF Pericles & EURO Protection PROTECTING THE EURO AGAINST COUNTERFEITING TACTICAL, TECHNICAL AND LEGAL PERSPECTIVES 4 - 6 of JUNE 2003 IN LISABON PROTECTING THE EURO, TACTICAL AND TECNICAL TRAINING – 30 JUNE TO 2 JULY 2007 IN PODGORICA, MONTENEGRO TECHNICAL ANALYSIS TRAINING FOR COIN EXPERTS –10-12 MARCH 2009 PESSAC TECHNICAL TRAINING: “STRENGTHENING THE PROTECTION OF THE EURO IN THE FINANCIAL SECTOR” –12-14 JULY 2009 PODGORICA, MONTENEGRO A COMMUNITY STRATEGY TO PROTECT EURO IN THE MEDITERRANIEN AREA - 10-12 OCTOBER 2012 DUBROVNIK ETSC TECHNICAL TRAINING ON ANALYSIS OF COUNTERFEIT EURO COINS - 30 OCTOBER 2012 CETINJE, MONTENEGRO

7. 7 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy Central Bank of Montenegro-Agreements  6 May 2008 – signed Cooperation Arrangement with the European Commission/European Anti-Fraud Office (OLAF);  20 January 2009 – Signed Cooperattion Agreement with the ECB

8. 8 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy Central Bank of Montenegro- Pillar Legal Framework Central Bank of Montenegro Law (˝Official Gazette of MNE“, nos. 40/10, 46/10) 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.

9. 9 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy Central Bank of Montenegro- Pillar Legal Framework 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 MNE”, no. 35/11)

10. 10 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy Central Bank of Montenegro- Pillar Legal Framework Decision on the supply of banknotes and coins (“Official Gazette of MNE”, no. 19/11) CBCG regulation – National level:  supplying banknotes and coins to banks and other persons holding an active account with the Central Bank of Montenegro;  cash takeover;  technical and security requirements for cash counting;  sorting and packing of banknotes banknotes and coins  separation of fit banknotes and coins from unfit banknotes and coins;

11. 11 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy NCC, NAC and CNAC in Central Bank of Montenegro Protocol on Cooperation with Police and Prosecution Automation of cash processing (ECB and EK/OLAF/ETSC standards)

12. 12 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy C R I M I N A L C O D E 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 currency. COUNCIL FRAMEWORK DECISION 2000/383/JNA COUNCIL FRAMEWORK DECISION 2001/888/JHA

13. 13 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy Manufacture, Purchase and Supply of Counterfeiting Instruments and Materials Article 262 (1) Anyone who manufactures, purchases, sells, keeps for his use or supplies another person for his use the instruments and material for producing counterfeit currency, payment cards, or tokens of value shall be punished by a prison term from six months to five years. (2) The punishment under para. 1 above shall also apply to anyone who, in view of producing counterfeit currency, produces, purchases, sells, keeps, or supplies another person with holograms or other currency elements serving as protection against counterfeiting. (3) Anyone who manufactures, purchases, keeps for his use or supplies another person for his use the instruments for producing counterfeit tokens of value shall be punished by a fine or a prison term up to two years. (4) The instruments referred to in paras 1 and 2 above shall be confiscated.

14. 14 Economic and Monetary Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 17: Economic and Monetary Policy Reachimng full compliance with EU legislation governing cash management and protecting the integrity of the euro, Full harmonisation with the relevant EU acquis governing this area - Gradual Adjustment until Accession of Montenegro to the EU and the EMU. Objectives to be attained- Convergence Dynamics

15. Thank you for your attention QUESTIONS