Montenegro’s Central Bank has formally submitted the state’s application to join the Single Euro Payments Area (SEPA), marking a significant step towards deeper integration of Montenegro’s financial system into the European economic and market framework.
According to the announcement, SEPA membership promises substantial benefits for Montenegrin citizens and businesses, including reduced transaction costs, faster payment processing times, and simplified cross-border transactions within the European market.
Irena Radović, Governor of the Central Bank of Montenegro, described the submission of the SEPA application as a historic milestone.
“Joining SEPA will streamline cash flow management, simplify international business operations, and create new opportunities for trade and investment,” Radović highlighted.
The application follows extensive collaboration between Montenegro’s Central Bank, other regulatory bodies, the government, and the Montenegrin Parliament. Significant progress has been made in aligning Montenegro’s regulatory framework with EU standards, including laws on payment services, banking operations, anti-money laundering, free movement of capital, and personal data protection.
“Our objective is to enhance Montenegro’s attractiveness for foreign investment by establishing a reliable and efficient financial system fully integrated into the European framework. SEPA accession will deliver tangible benefits to Montenegro’s economy and citizens, and bring us closer to full EU membership and integration into the European Central Bank system,” emphasized Radović.
She also stressed that SEPA membership will significantly boost the development of Montenegro’s banking sector, fostering enhanced interactions within the broader economic landscape.
“While implementing SEPA standards will require adjustments and enhancements to our banking infrastructure, we are confident that with concerted efforts from all stakeholders, we will successfully meet these challenges in a timely manner,” Radović concluded.
SEPA, initiated in 2008 with support from the European Commission and the European Central Bank, aims to standardize payment systems across Europe, improve payment efficiency, and lower transaction costs between member states. Currently, the SEPA area encompasses 36 countries, including EU member states, the United Kingdom, Iceland, Liechtenstein, Norway, Switzerland, Monaco, San Marino, Andorra, and Vatican City.
SEPA membership eliminates disparities in payment speed, costs, and processes between national and international transactions. It enables citizens and businesses to conduct transactions within the SEPA area faster and at significantly lower costs compared to current standards.
Montenegro anticipates that SEPA membership will facilitate easier access to the European market for its businesses, promote business expansion, enhance competitiveness, and stimulate innovation. The move is also expected to positively impact key sectors such as tourism, trade, and foreign direct investment attractiveness.
The final decision on Montenegro’s acceptance into SEPA will be made by the European Payments Council (EPC), the body responsible for standardizing and advancing the European payment system based in Brussels. The EPC will review Montenegro’s application and, in collaboration with the European Commission, assess compliance with SEPA standards before rendering a decision on membership.
