THE SECOND REPORT ON THE IMPLEMENTATION OF THE 2010-2014 STRATEGY FOR PREVENTION AND SUPPRESSION OF TERRORISM, MONEY LAUNDERING AND TERRORIST FINANCING AND ITS ACTION PLAN FOR THE PERIOD 2010-2012
I INTRODUCTION
In the second half of 2011, the National Commission for the implementation of the Strategy for Prevention and Suppression of Terrorism, Money Laundering and Terrorist Financing has continued to undertake measures and actions in the field of organizing, coordinating and monitoring the activities of state authorities, public administration bodies and other relevant institutions, with regard to the implementation of the Strategy. In this regard, the Commission has continued to assess the results achieved in implementation of the Strategy and implementation of measures from the Action Plan for the period 2010-2012.
Bearing in mind that these are very extensive, responsible and complex tasks, the Commission has, by designating contact persons in the competent authorities, together with the Secretary of the Commission, formed an expert team, which coordinates these activities. The expert team collects and processes the data submitted by the competent authorities and is obliged to timely report to the Commission thereon. The resulting reports on the current degree of implementation of measures from the Action Plan will constitute the basis for setting priorities and deadlines for the implementation of and proposing further measures.
The National Commission has also obliged the competent authorities for implementing measures from the Action Plan to submit, to the Commission, the reports on the degree of implementation of measures from the Action Plan by 30 November 2011, so that the Commission can timely prepare and submit to the Government of Montenegro the Second Report on the Implementation of the Strategy for Prevention and Suppression of Terrorism, Money Laundering and Terrorist Financing.
On the basis of reports received by the designated deadline, the Second Report on the Implementation of the 2010-2014 Strategy for Prevention and Suppression of Terrorism, Money Laundering and Terrorist Financing and its Action Plan for the period 2010–2012 has been prepared, and was considered by the National Commission at its session held on 6 December 2011 and was, with the amendments adopted at the session, passed in the form submitted to the Government for consideration.
II IMPLEMENTATION OF MEASURES
a) Terrorism
With a view to improving the normative - legal framework, in the context of the prevention of terrorism, in 2011, in accordance with relevant international standards the following activities have been planned and made concrete in the organizational systems of the National Security Agency, the Police Directorate and the Ministry of Interior:
• Relevant amendments to the Law on National Security Agency and the Rulebook on organization and job descriptions were adopted and an adequate analysis was prepared.
• Based on an analysis of existing regulations, within the Police Directorate a Proposal for the Rulebook on internal organization and job descriptions of the Police Directorate was prepared and adopted by the Government of Montenegro. The instructions on the engagement of the Special Anti-terrorist Unit, Special Police Unit and the Ad Hoc Negotiation Taskforce have been prepared and will be adopted by the end of this year.
• The Ministry of Interior has prepared a Proposal for the Law on Internal Affairs, and, previously, the Parliament of Montenegro adopted the Law on the DNA Register. These Laws, among other things, define the Police competences and conduct in the performance of official duties and their compliance with international standards, which will contribute to improving the fight against terrorism.
With a view to developing personnel, administrative, material and technical capacities, the National Security Agency and the Police Directorate have prepared and adopted new Rulebooks on organization and job descriptions. Further to their commitments, both the National Security Agency and the Police Directorate have continuously undertaken activities related to selection and recruitment of adequate professional staff, thus achieving a satisfactory level of staffing capacity compared to the current job descriptions. Within the Police Directorate, there are 5,189 positions for civil servants, of which 5,018 are filled.
The Police Directorate has prepared a plan of procurement needs for the missing material and technical resources, as well as specialized equipment for the Special Anti-terrorist Unit, Special Police Unit and the Counter Terrorism Search Team. The percentage of equipment that has been acquired compared to the level planned is the following: for Special Anti-Terrorist Unit – 20%, for Special Police Unit – 10%, for Special Verifications Division – 60%. During 2011 there was no procurement of material and technical resources for needs of the Counter Terrorism Search Team.
During 2011, strengthening of the intelligence system in the process of intelligence gathering by the National Security Agency and the Police Directorate has been continued. Within the scope of the National Security Agency’s work, further improvement of technical solutions and equipment has also continued. Special programs and trainings are attended that contribute to advanced professional development of the Police Directorate and the National Security Agency staff in charge of these duties, with obligatory further and permanent professional development.
Within the set of activities whose implementation was, in this segment, a task of the Supreme Court of Montenegro and the Judicial Training Center, in the first half of 2011, continuous training of judges was planned and successfully implemented in terms of their familiarization with international legal provisions and conventions. As much as 11 trainings for 136 judges and representatives of the judiciary were organized in that period. In the second half of 2011, no education was organized with regard to familiarization with international legal conventions and laws.
As for developing personnel, administrative, material and technical capacities, the Armed Forces of Montenegro dedicated, within its second mission, a Special Forces Company and Military Police Company, for the needs of supporting civilian structures in the fight against terrorism. The new organizational structure defines the size of these units, with ongoing activities towards their full manning.
With a view to implementation of new training programs and advanced professional training, the National Security Agency and Police Directorate staff engaged in counter-terrorist activities have continued to attend specialized courses and studies in the country and abroad which are focused on recognition and prevention of all kinds of radicalizations and extremism which might grow into terrorism.
The Police Directorate has also continued to implement training of its employees who work on terrorism-related investigations. Through specialized trainings and data exchange, cooperation of members of Special Anti-terrorist Unit and Special Police Unit with renowned special forces in the region and beyond was intensified. The Counter Terrorism Search Team also, on a daily basis, has trainings with their equipment. Needs in the fields of anti-sabotage protection and biochemical protection are also continuously assessed and staff training in these fields is delivered.
Within the set of activities whose implementation was, in this segment, a task of the Supreme Court of Montenegro and the Judicial Training Center, in the second half of 2011, five trainings were organized and attended by 33 judges and representatives of the judiciary.
The Ministry of Defense and the Armed Forces of Montenegro staff has also continued to regularly and systematically participate in various forms of joint trainings with forces of other institutions in the country, but due to their work specifics - with NATO units and other foreign armed forces as well. In this context, in 2011, the members of the Special Anti-terrorist Unit implemented, together with Special Action Company of the Armed Forces of Montenegro, an exercise “Decisive Step II”. In addition, during 2011, members of the Armed Forces of Montenegro have attended seminars related to cyber terrorism, and a contact has been established with the Ministry of Defense of Estonia with a view to send members of the Armed Forces of Montenegro to attend courses in the NATO Cooperative Cyber Defence Centre of Excellence, which is located in Estonia.
In order to promote cooperation between all relevant institutions in the country, region and at international level, the National Security Agency and the Police Directorate have continuously organized meetings with institutions in the country and abroad as part of their professional competences. Also, staff of the National Security Agency, Police Directorate and the Ministry of Interior has continued to actively participate in the work of bodies, groups and projects aimed at combating terrorism. The aim of these activities is the planning and implementation of joint interventions in this field, both in our country, in the region and beyond.
With regard to international level cooperation, the National Security Agency has continued intense cooperation both at bilateral and multilateral level with a large number of intelligence and security agencies and associations in Europe and the world, which is an activity that will continue to be intensified. The Police Directorate also regularly plans and carries out national level activities aimed at preventive action in collecting operational data and information on manifestations of extreme or radical behavior.
In the second half of 2011, active participation of the Ministry of Defense and the Armed Forces of Montenegro staff in working bodies, groups and projects aimed at combating terrorism in the country and abroad has continued. One member of the Armed Forces of Montenegro actively participates, as of 2006, in the meetings of the Asymmetric Threats Sub-Working Group - ATSWG, which operates under the auspices of the Conference of Chiefs of General Staff of the Armies of Balkan Countries. The meetings of the working group are held twice a year.
With regard to improving the mechanisms for disabling propaganda and calling for terrorism, as well as inciting terrorism in any manner, the Ministry of Justice of Montenegro has initiated and partially implemented a comprehensive procedure of alignment of the Montenegrin legislation with EU regulations and other relevant international standards, with their continuously ongoing analysis. In this process, the Criminal Code was amended in accordance with the current Judicial Reform Strategy (2007-2012), and the plan for its implementation.
With regard to the protection against terrorism, the Police Directorate continuously works, through procurement of necessary equipment, on improving and strengthening the system of protection and supervision of the state border, while the mechanisms for the protection of infrastructure facilities of special importance and control of transport and storage of materials that can be used for terrorist attacks will be promoted by the next Action Plan, along with prepared analyses.
In 2011, the third phase of establishing a system of electronic supervision of the “blue border” has been completed. The reconstruction of border crossings “Dobrakovo” and “Dračenovac” has been completed, while the security system of border crossings “Luka Bar” and “Port of Kotor” has been enhanced. In 2011, two special purpose vehicles ATV with additional equipment were provided for Border Police units in Berane and Pljevlja, as well as sixty-four sets of devices for examining documents.
In the context of these issues, the Ministry of Interior has continued to take all measures and actions that, in accordance with applicable legislation and relevant international standards, constantly improve the system of traffic control, storage and safekeeping of weapons, explosives and other devices that could be used for terrorist attacks.
In addition, the Ministry of Defense has carried out an analysis of the existing system of control, storage and safekeeping of weapons, explosives and other devices, on the basis of which, among other things, the reconstruction of the Taraš warehouse was carried out, through which the Armed Forces of Montenegro were given a modern warehouse to store the arms and ammunition in line with NATO standards. Also, the main project for the reconstruction of warehouse Brezovik has been prepared. In addition, the Ministry of Defense has continued to resolve the issue of surplus weapons and ammunition, as they represent potential targets of terrorists. In 2011, a total of 198.36 tons of ammunition were destroyed, while the contracts were signed for the destruction of additional 702 tons. An Annex to the Technical Agreement with the U.S. Government has been signed for the destruction of small arms and light weapons and ammunition of various types, on the basis of which about 900 tons of obsolete ammunition will be destroyed.
With a view to improving the mechanisms for strengthening supervision over the trade and use of dual-use goods, the Ministry of Economy has, during 2011, prepared a Draft Law on Foreign Trade of Dual-Use Goods, which has been submitted to relevant institutions for obtaining approval, while the preparation of the Draft Law on Foreign Trade of Armaments and Military Equipment is underway.
Within the segment of criminal prosecution, the Supreme Public Prosecutor’s Office of Montenegro and the Police Directorate are continuously preparing semi-annual analyses of the statistical indicators related to the number of cases in the field of terrorism, along with regular implementation of trainings in the field of financial investigations. Together with an analysis of compliance of the legislation with international standards and conventions, these are necessary indicators of an effective implementation of criminal prosecution of perpetrators, accomplices or other people who are in any way associated with terrorist activities.
With a view to more efficient enforcement of criminal prosecution of perpetrators, accomplices and persons in any way associated with terrorist activities, within the segment of criminal prosecution, the Ministry of Justice is continuously working on the analysis of the compliance of active legislation with international standards and conventions, thus ensuring the necessary compliance. In this process, special attention is paid to the recommendations and special recommendations of FATF organization, as well as to special resolutions of the UN Security Council.
In cooperation with numerous domestic and international partners, the line Ministry is also actively participating in preparation and implementation of specialized trainings in the field of financial investigations that are dedicated to specific issues, as well as in coordination of cooperation of state authorities in them, with a view to their final realization.
b) Money laundering and terrorist financing
In the second set of measures of the Action Plan, which is related to money laundering and terrorist financing, the following activities were planned and implemented in 2011 in the organizational systems of the Administration for Prevention of Money Laundering and Financing Terrorism and the Police Directorate in order to improve the legal and normative framework in accordance with relevant international standards:
Following the analysis of relevant international standards and conventions regulating this field, the Administration for Prevention of Money Laundering and Financing Terrorism and the Ministry of Finance have prepared a revised Proposal for a Law on Amendments to the Law on Prevention of Money Laundering and Terrorist Financing and have submitted it to the Government for consideration and adoption. Following the adoption of the Proposal for a Law on Prevention of Money Laundering and Terrorist Financing, adoption of a set of secondary legislation (also harmonized with international conventions) necessary for the implementation of the above legal act is expected.
The list of indicators of suspicious transactions has been amended. The Administration for Prevention of Money Laundering and Financing Terrorism has adopted the Proposal for the Rulebook on amendments to the Rulebook on the indicators for identifying suspicious customers and transactions, which was forwarded to the Ministry of Finance for adoption.
With a view to developing personnel, administrative, and material and technical capacities, the Government of Montenegro has adopted, at proposal of the Administration for Prevention of Money Laundering and Financing Terrorism, a new Rulebook on internal organization and job descriptions of the Administration for Prevention of Money Laundering and Financing Terrorism.
An employment of a certain number of civil servants is underway in the Administration for Prevention of Money Laundering and Financing Terrorism, through which a satisfactory level of available personnel will be achieved, with a planned increase in the number of employees. The current percentage of filled positions compared to the job descriptions is 76.3%.
With regard to the Police Directorate, the staffing capacity has been achieved in line with the job descriptions, so that all departments have the necessary personnel. At its session held in November 2011, the Government of Montenegro has adopted the Rulebook on amendments to the Rulebook on internal organization and job descriptions of the Police Directorate which, among other things, provides for additional four positions for civil servants, the task of whom will be to carry out financial investigations in the framework of actions of the Organized Economic Crimes Team.
Within the Administration for Prevention of Money Laundering and Financing Terrorism, an assessment of the need for procurement of equipment in accordance with recognized trends in the field of money laundering has been made. The estimated needs were partially realized (currently at the level of 30%), with planned continuation of this activity.
In the segment of improving institutional cooperation, the Administration for Prevention of Money Laundering and Financing Terrorism and the Police Directorate have made analyses of the implementation of cooperation agreements with other authorized state authorities and organizations, and an assessment of revision of existing agreements or development of new ones. The Administration for Prevention of Money Laundering and Financing Terrorism has concluded agreements with Public Prosecution Office, Police Directorate, Customs Administration, the Central Bank and other state authorities, while the signing of an agreement with the Agency for Insurance Supervision is underway.
Work on an efficient inter-institutional data exchange has also been continued between the Administration for Prevention of Money Laundering and Financing Terrorism, Police Directorate and the Prosecution Office. Within the framework of this cooperation, a total of 78 reports on suspicious transactions have been exchanged during 2011.
Special attention is given to improving international cooperation. Therefore, after analyses of the implementation of agreements on cooperation with financial intelligence agencies in the region, the need was ascertained for new agreements on exchange of financial intelligence data. Such agreements were already signed with several countries, and a number of them are in the planning stage.
The Administration for Prevention of Money Laundering and Financing Terrorism has signed the Agreements on exchange of financial intelligence with Armenia, British Virgin Islands and the Great Britain. There are plans to sign agreements with Canada and Japan as well. In 2011, a total of five Agreements have been signed on the exchange of financial intelligence with foreign financial intelligence units (FIUs).
The above has resulted in the increasingly efficient exchange of financial intelligence data, information and documentation with the authorized bodies of other countries and international organizations. During 2011, within the Administration for Prevention of Money Laundering and Financing Terrorism, a total of 43 requests and 445 answers have been received from foreign FIUs, while 582 requests and 39 answers were submitted to them.
In addition, links have been provided, and a centralized information system has been established, in which the following authorities are included: Ministry of Justice, Ministry of Interior, Directorate of Public Revenues, Administration for Prevention of Money Laundering and Financing Terrorism, Police Directorate, and NCB Podgorica.
With a view to implementation of new programs of training and professional development, representatives of the Administration for Prevention of Money Laundering and Financing Terrorism and the Police Directorate have continued to participate in numerous seminars, workshops, round tables and conferences organized by international institutions, as well as in those specially organized for authorized persons and employees who have direct contact with clients.
In order to implement the recommendations of MONEYVAL, based on the conclusions of the Government of Montenegro from 23 April 2009, four out of five conclusions in jurisdiction of the Administration for Prevention of Money Laundering and Financing Terrorism have been realized.
After a risk analysis was prepared and adopted, with the participation of supervisory authorities, and under the applicable law, the Guidelines on the development of risk analysis to prevent money laundering and terrorist financing were established.
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Based on the above data, the National Commission has ascertained that those measures foreseen by the 2010-2012 Action Plan scheduled for 2011 have been realized in a high percentage, bearing in mind that a small number of acts is in the final stage of implementation, or adoption by the competent authorities.
In the following year, 2012, the National Commission for the Implementation of the Strategy for Prevention and Suppression of Terrorism, Money Laundering and Terrorist Financing will stay committed to improving cooperation with institutions in the country and abroad, with a view to planning and implementing joint activities in Montenegro, the region and at the international level, in line with consistent realization of all the measures from the Action Plan for the period 2010-2012.
Action Plan ENG.doc
