Opening custody account
1. The list of necessary documents for opening a custody account
- Certificate of registration with the authority of the country where the legal entity has its registered headquarters or, if it is established in a country where there is no such registration is required, another valid document on establishment in accordance with the country of residence’s regulations, based on which the legal form of the legal entity can be established, as well as its date of establishment and its ownership structure (the document can be no older than three months and has to be verified by a notary/contain apostille)
- If the account is opened by an attorney, it is necessary to provide a document (a decision or an authorisation) on the appointment of the attorney representing a foreign legal entity with apostille and with a verified translation to the language in official use in Montenegro;
- Written authorisation, in the case that the account is opened through an authorised person, containing: the name and surname of the authorised person, ID type and number, date and place of issue, title of the issuing authority, stamped (if a stamp exists) and signed by the person authorised to represent the legal entity (the document has to be verified by a notary);
- Stamped copies of the owner’s, attorney’s and authorised person’s passports
- Articles of Association.
2. The following documents need to be filled in and signed
• Custody account opening/termination request;
• Custody cash account opening request;
• Request for acquiring the status of a Custody Department’s client;
• Statement;
• Actual owner form;
• KYC questionnaire;
• List of deposited signatures of persons authorised to sign payment orders signed by the authorised person from the decision on the non-resident legal entity’s registration in the country where the legal entity has its registered headquarters, that is, from another valid document on establishment, and by the person to which the authorised person transferred the signing rights, verified with the same stamp that is to be used to verify payment orders – two copies;
• Form PEL (form to identify politically exposed person) for the actual owners of the legal entity;
• Cash and securities transfer authorisation
Note
After the complete documentation has been provided and the approval for establishing a business relation obtained, the contracts are signed in the bank’s headquarters or in another location with the obligatory presence of an officer from the Custody Department.
RENEWING DOCUMENTATION
In accordance to Montenegrin legislation, you are obliged to inform us on time about any changes that may take place in your company, such as:
• Certificate of registration – the client is obliged to submit this document once a year, by 31 March of the current year at the latest;
• Monthly questionnaire for AML;
• Statutory changes – mergers, acquisitions
• Takeovers
• Change of headquarters
• Changes of executive officers or authorised persons
• Changes to the account, blockades, etc.
• Bankruptcy or liquidation
• Other important information
Note
1. Pursuant to Articles 19 and 20 of the Law on Prevention of Money Laundering and Terrorist Financing, the Bank is obliged to acquire information on the real owners of legal entities. As per this law, the real owners of a legal entity are considered to be the following:
A. A natural person possessing more than 25% of share ownership, the right of vote or other rights, directly or indirectly, based on which they participate in managing, that is, in the capital with a share exceeding 25% or has the prevailing influence in managing a legal entity’s assets;
B. A natural person indirectly providing assets to a legal entity and on that basis has the right to participate to a significant degree in the management making decisions on the finance and business operations.
As per this law, the real owners of an institution or a foreign legal entity (trust, fund, etc.) receiving or distributing financial assets for certain purposes are considered to be the following:
C. A natural person with more than 25% of ownership, directly or indirectly, of the foreign legal entity;
D. A natural person designated or that can be designated as the beneficiary of more than 25% of incomes from the managed property.
2. Apostille is obligatory for documents issued in countries signatories of the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents from 1961 with which Montenegro does not have appropriate bilateral agreements concluded.
3. If the owner of a legal entity is another legal entity, it is necessary to submit the same registration documentation for that legal entity. The procedure is repeated until information on the real owner of a legal entity is acquired.
4. The definition of an entity from the USA: For taxation purposes, one shall be considered an entity from the USA if:
• they are a natural person with US citizenship or a foreigner with permanent residence in the USA;
• they are a partnership, company or an association established and organised in the USA or according to US laws;
• they are a piece of property (unless it is foreign property);
• they are a domestic trust.
