meta_id 3024174

On 27 February 2026, the Council of the Central Bank of Montenegro passed a Decision on Supplementary Supervision of Intra-Group Transactions and Risk Concentration Within a Financial Conglomerate, pursuant to Article 44 paragraph 2 of the Central Bank of Montenegro Law and Article 39 paragraph 1 of the Law on Financial Conglomerates. The Decision establishes the Central Bank of Montenegro's framework for exercising supplementary supervision as coordinator in cooperation with other competent authorities. The Central Bank will determine which intra-group transactions and risk concentrations within financial conglomerates are significant for supervisory purposes. Significant intra-group transactions include investments, intercompany balances, guarantees, derivatives, asset purchases or leases, intra-group fees, risk-shifting transactions, insurance operations, and multi-step transactions that ultimately return risk exposure within the conglomerate. When identifying significant transactions, the Central Bank will consider the financial conglomerate's structure, complexity, geographical location of counterparties, contagion effects, regulatory circumvention risks, conflicts of interest, and solvency of counterparties. Significant risk concentration exists when risk exposures towards external counterparties are direct or indirect, on-balance or off-balance sheet, and concern regulated or unregulated entities. The Central Bank will consider solvency and liquidity, conglomerate size and complexity, risk management structures, exposure diversification, geographical and sectoral diversification, and possible contagion effects when identifying significant risk concentrations. The Central Bank may require regulated entities and mixed financial holding companies to perform intra-group transactions at arm's length, approve transactions through established procedures, report more frequently on significant transactions and risk concentrations, establish additional reporting, strengthen risk management processes, and submit compliance restoration plans. The Decision enters into force eight days following publication in the Official Gazette of Montenegro.