Open a Bank Account in Montenegro: 2023 Ultimate Guide

Opening bank accounts has become quite a challenge in recent years. Long gone are the times when you could simply walk into a branch and get an account instantly, with just your signature and passport copy. 

Montenegro is no different.

Most banks follow a rather strict due diligence procedure to make sure not to attract problematic clients. The international banks operating in Montenegro are a tick more conservative than Montenegrin banks. Certain nationalities will find it impossible to open a bank account, for example, if their country is on the UN sanctions list.

In general, it is no problem for anyone with a western background to get a Montenegrin bank account if all requirements are fulfilled.

Open a Bank Account in Montenegro as a Non Resident

It is not possible to open a bank account in Montenegro as a non resident. You can only open an account for national payments which does not allow for international money transfers. If you want to open an account for international payments, you would need to get a residence permit or purchase a property first.

Open a Personal Bank Account in Montenegro

Non-resident individuals can open personal bank accounts if they either own property or if they have a residence permit in Montenegro. The document requirements are the following:

• Passport copy
• Proof of accommodation in Montenegro (either property title or certified rental agreement)
• Copy of Montenegrin residence permit
• Copy of employment contract

The account opening takes roughly half an hour and during this process, the bank employee will ask you to provide information regarding yourself such as your father’s given name, residential address, phone number, and e-mail address. Then he will go on to take a scan of your passport which you need to sign.

What follows in the due diligence procedure is the signing of the FATCA and the PEP documents. FATCA refers to the Foreign Account Tax Compliance Act that requires foreign financial institutions to collect data on US citizens abroad who open bank accounts. 

The Politically Exposed Person Identification Form (PEP) gathers information about everyone that performs a prominent public function such as politicians or diplomats.

Most banks offer debit cards, mobile banking, and e-banking options. Be aware that you need to request each option individually. In the personal account application form, there will be questions about your employment status, financial information, and whether you are expecting any large transactions soon.

If you chose the right bank, it should not take longer than a couple of days to receive your bank card and access code for mobile banking.

Note: Private Banking solutions are available in some banks. Montenegro does not offer offshore banking.

Open a Business Bank Account in Montenegro

Open a business account when you have obtained residency in Montenegro and are ready to start accepting or spending money as your business. The corporate bank account helps you stay compliant since it is a mandatory requirement in Montenegro to have a local bank account. You will need it to pay out salaries to employees including yourself.

Opening a bank account for your company is subject to a stricter due diligence procedure and be prepared that banks will request additional documents. These are the document requirements:

• Signed passport copy
• Copy of National ID card (residence permit in Montenegro)
• Proof of current residential address (certified rental contract)
• Certificate of Incorporation
• Articles of Association
• Corporate Stamp
• List of authorized signatories and accounts

The document below which is called ‘OP Obrazac’ in the Montenegrin language, needs to be signed by the company director and notarized by a notary in Montenegro.

The identity verification is done by a bank employee in a local branch. The company director must be present to sign the account opening documentation. Non residents need to make sure to have received their Montenegrin residence permits beforehand.

As mentioned above, Montenegro offers both domestic and international accounts which you need to request separately during the account opening procedure.

One issue with most Montenegro banks is that they do not accept all businesses straight away. If you have registered for a particular business activity they consider risky, your application may be rejected. Even if you have all documents in order. This is one major downside of trying to open the account yourself. 

To open an account in Montenegro, we need to schedule a meeting with a banking representative, and you need to come personally to visit the local bank branch in person. Opening accounts in Montenegro remotely is unfortunately not possible.

Our introductory service is included in our company formation packages ‘Starter’ and ‘Complete’. We have a network of partner banks that we closely cooperate with, and depending on your individual needs, we can come up with a tailored solution for you.

Info: Foreign companies doing business in Montenegro are advised to establish a Montenegrin company with bank accounts in Montenegro. The reason for this is that the processing of payments will go much smoother. Banks are warier of foreign companies with Montenegrin accounts.

Montenegro’s Banking System

Montenegro uses a dual-account banking system. There are two distinct account types with different capabilities:

(1) The National Account

This account is a current account in Euros and is used to make payments within Montenegro. You can use it to pay bills, taxes, and fines. You cannot make international transfers or receive money from abroad.

(2) The International Account

As the name suggests, this type of account is used to transfer funds abroad and receive money from other countries. If you want to withdraw cash from the international account though, you would first need to make a transfer to your domestic current account. Account holdings in the international account are in multiple currencies and there is a currency exchange fee when the foreign currency is exchanged into Euros.

One peculiarity in Montenegro’s banking sector is that the currency in use is the Euro even though Montenegro is not even part of the Eurozone. The central bank of Montenegro thus does not issue any currency at all.

source: Central Bank of Montenegro

Montenegro’s banking system has experienced a broad stabilization and the gradual development of the country’s capital markets. With no currency of its own, the Central Bank of Montenegro has no power over the monetary policy. It can not raise or lower interest rates. Its main goal though is the control of the banking system and oversight of the payment system.

The Central Bank has done a good job so far. When there were irregularities with two banks that went into bankruptcy, it oversaw the entire process to guarantee that ensured deposits have been paid out to all depositors.

Best Bank in Montenegro

Most banks in Montenegro are universal, international banks with local branches in Montenegro. Other banks originate in Montenegro such as the ‘Prva Banka Crne Gore’ – the First Bank of Montenegro.

Many banks offer e-banking, debit and credit cards, mobile banking solutions, and contactless payments. Not all of the banks give mortgages and business loans to temporary residents. Some banks have introduced private banking options.

Click the following link if you want to read a more in-depth guide about the best banks in Montenegro.

Restricted Countries

You may find it difficult to open a Montenegro bank account if your country of origin is blacklisted by either the Central Bank or the internal compliance department of your chosen bank. Few countries are blacklisted due to sanctions or other international agreements.

If you are from one of the countries on the list below, you might not be able to open bank accounts in Montenegro:

• Iran
• Syria
• Afghanistan
• Pakistan
• Cuba

Each bank has its internal policy and can decide which nationalities they deem appropriate. Having said that, some banks may not consider Russians or Chinese, while other will allow them. In general, European country nationals have no issue to open a bank account.

Is my money safe? Deposit Insurance in Montenegro

Montenegro’s banking sector is stable. In the event of a bank bankruptcy, the Deposit Protection Fund guarantees the payout of up to 50,000€ per depositor, be it a resident or non resident individual or Montenegrin company.

The deposit insurance protects all deposits including checking, current, and saving accounts. In case of a bankruptcy and a balance exceeding 50,000€, depositors are paid the remainder of the bankruptcy estate.

All banks operating in Montenegro have deposit insurance protection, including branches of Montenegrin banks operating abroad.

So far, only two banks in Montenegro’s history had faced bankruptcy. The Deposit Protection Fund has honored its obligations and paid out all depositors on time.

Is Montenegro part of the CRS?

The Organization for Economic Cooperation and Development (OECD) announced on July 28, 2022, that Montenegro has joined the formal agreement on the automatic exchange of financial account information (AEOI) under the common reporting standards (CRS). 

The Montenegrin government will start to disclose banking information as early as September 2023, a move seen as a step towards European Union integration and against money laundering and bank secrecy.

Montenegro has never been an offshore banking destination anyway, contrary to what some people on the internet want to make you believe.

Can foreigners or tourists open a bank account in Montenegro?

Foreigners and tourists are considered non residents in Montenegro. The only two ways non residents can open a bank account in Montenegro is by getting Montenegro residency first or owning property in Montenegro.

Open Bank Account Online in Montenegro

Though on paper there are ways to open a bank account online in Montenegro, we find that the process is too clunky and you end up showing up at the local branch of the bank anyway to sign documents. 

For example with Erste Bank, you can fill out an online form with your personal and contact details. A bank employee will then contact you by phone to confirm the validity of this information.

Once they have processed your application, you need to visit a bank branch to sign documents and pick up your bank card.

How to send money to someone with a bank account in Montenegro?

In order to send money to a Montenegrin bank account, you need to ask the receiver to send you his/her international bank account details. These details include:

• Name of the account holder (full name or company name)
• International Bank Account Number (IBAN)
• SWIFT/BIC number
• Include a reference such as ‘Invoice nr. 1234’ or  ‘Gift to relative’
• Bank address and personal/corporate address

Since Montenegro does not have its own currency, it needs to use a global network of corresponding banks to process international payments. These banks can slow down the processing time of your transfer and add additional fees. With many banks, you can specify a particular corresponding bank.

For example, when sending Euros, you can choose a bank located in Frankfurt, Germany, when sending British Pounds, then in London, and so on. You do not have to define an intermediary bank though: if you just use the Swift Address of the receiving bank, the intermediary bank will be chosen for you.

Transferwise Montenegro

There is no online bank operating in Montenegro as of today. If you want to receive your salary, pay out dividends from a business to your account, or pay bills in Montenegro, there is no way around the good old brick-and-mortar banks.

One downside with banks in Montenegro is that fees can be on the higher side for international payments because transfers need to go through a network of intermediaries. This is especially the case if you receive small amounts regularly, for example when receiving affiliate commissions or proceedings from vacation rentals.

Further, traditional banks usually mark up exchange rates. The Wise multi-currency account might be an amazing secondary bank account for all expats in Montenegro. With Wise, you can receive smaller amounts at much lower fees and better exchange rates. 

If this sounds all right to you, you can go ahead and Open your Wise account online in just a matter of minutes.