The formal financial sector refers to using regulated financial institutions and systems, such as banks, investment firms and financial markets, by violent extremist groups or individuals to transfer money for their activities.
For example, violent extremist groups in Montenegro, such as Saint Michael’s Choir and affiliated Orthodox brotherhoods, often register as non-profit organizations to access formal funding. To receive donations from state institutions or state-owned companies, these groups must maintain bank accounts and operate within the formal financial sector. This infrastructure enables them to receive grants – such as €1 000 from the state electricity company – under the guise of cultural or humanitarian work.39 The financial system thus becomes a critical enabler for legitimizing and sustaining extremist-linked activities through official funding channels.
39Elektroprivreda Crne Gore AD Nikšić, Decision on awarding a donation no. 10-00-33404, 28 July 2021.