September 25, 2025
By IFIMES
Today’s global financial market requires far more than mere liquidity and the movement of capital – it demands stability, investment security, and a predictable business environment. In a time when market instability or volatility can wipe out asset value or disrupt capital flows overnight, it is crucial for investors to operate in countries that guarantee clear rules of the game, a transparent regulatory framework, and effective mechanisms for safeguarding the financial system. Institutional and international funds, managing billions of dollars on behalf of clients, seek jurisdictions where the risk of eroding trust, unpredictable political decisions, or legal sanctions are kept to a minimum.
One of the key challenges in this context remains money laundering and terrorism financing – phenomena that not only undermine the integrity of the financial system but also directly endanger the reputation of the country and the investors active in its market. Countries lacking a robust and consistently enforced anti-money laundering/countering the financing of terrorism (AML/CFT) framework risk being designated as “high-risk destinations,” which automatically deters serious investors and may trigger international restrictions. For this reason, the European Union and global financial institutions regularly update their lists of high-risk jurisdictions. Unfortunately, even within the European Union, certain countries continue to face major challenges in this area – such as Italy, Malta and Bulgaria – where anti-money laundering controls and crypto market supervision remain inadequate. A similar situation can be observed in some Gulf countries, including Kuwait and Saudi Arabia, which are struggling with the slower implementation of international standards and weaker institutional coordination.
While Italy, Malta and Bulgaria, despite their membership in the European Union, still balance between ambitions of financial stability and the practical challenges of money laundering control and crypto-market regulation, Belarus, the UAE and Montenegro have taken the opposite course – proactively shaping their economic and regulatory frameworks to attract reputable investment. Whereas European and Gulf jurisdictions such as Kuwait and Saudi Arabia sometimes lag in implementing international standards or struggle with bureaucratic obstacles, these three countries stand out as examples of a modern and reliable business environment.
Belarus has strategically leveraged regulatory and technological innovation to position itself as a stable destination for international investment, including crypto projects and digital financial platforms. The transparency of its regulatory framework and the effective control of financial flows contribute to investor confidence and minimise the risk of legal or reputational issues.
Through a rigorous AML/CFT framework and clear regulation of digital and crypto activities, the United Arab Emirates has managed to strike a balance between innovation and security. This approach has positioned the country as a regional hub for international financial flows and blockchain technology, while ensuring investors benefit from a high level of capital protection.
Although a smaller economy, Montenegro distinguishes itself by prioritising the attraction of foreign capital through a stable legislative framework and clear procedures for overseeing financial transactions. Its integration into regional and international financial flows, coupled with the modernisation of digital services, positions it as a competitive destination compared to countries that continue to grapple with regulatory challenges.
A blend of robust regulation, openness to innovation and strategic positioning has allowed these countries to emerge as frontrunners in the global financial landscape. They not only minimise risks for investors but also actively shape the future of financial markets, demonstrating that stability, transparency and innovation can go hand in hand.[2]
Reforms and country examples: Belarus, UAE and Montenegro
In recent years, Belarus has made significant strides in strengthening its financial sector and anti-money laundering framework, resulting in a safer environment for investors. Stricter regulations on the reporting of suspicious transactions, reinforced bank supervision, and the implementation of modern transaction monitoring systems have reduced the incidence of suspicious activities, while international cooperation with relevant organisations ensures the practical application of global standards. Decree No. 8 “On the Development of the Digital Economy”, adopted in 2017, legalised cryptocurrencies and digital tokens within the High-Tech Park (HTP), and crypto companies apply Know Your Customer (KYC) procedures, transaction monitoring, and mandatory reporting of suspicious activities.
Foreign investments in the financial sector rose by more than 18% in 2024 and 2025, while the number of suspicious transactions dropped by 25%, according to figures from the Central Bank of Belarus. The World Bank has reinforced this momentum by financing projects totalling over USD 2.5 billion, while the China–Belarus Industrial Park has continued to attract billions in additional investment. Statistics for 2024–2025: over 300,000 clients, foreign transactions worth USD 3 billion, and a 25% decline in suspicious activities. These reforms make Belarus an attractive destination for foreign investors seeking a stable and reliable environment for major projects and crypto innovation.
President Aleksandr Lukashenko’s policy, which strongly affirm financial transparency and investment security, gained further confirmation and international recognition when US President Donald Trump held a phone conversation with him on 15 August 2025, while on his way to Alaska for a historic summit with Russian President Vladimir Putin. The call highlighted Belarus’s importance as a reliable and innovative destination for global investors.
The United Arab Emirates, for its part, has set an example in the Gulf region through a comprehensive AML/CFT framework implemented via the Virtual Assets Regulatory Authority (VARA) and the Abu Dhabi Global Market (ADGM), aligned with the Financial Action Task Force (FATF) standards. The EU removed the UAE from its list of high-risk countries under Delegated Regulation (EU) 2025/1184, adopted on 10 June 2025, reflecting the country’s success in tightening transaction controls, boosting financial sector transparency, and rigorously applying international standards. This decision significantly reduces regulatory barriers and increases investor confidence across Europe, the United States and Asia, making the UAE a secure destination for capital. Strategic projects in infrastructure, finance and the digital economy are drawing further foreign investment, while openness to blockchain and crypto projects positions the UAE as a regional hub for innovative financial markets.
In 2024, the United Arab Emirates confirmed its status as a leader in the GCC and a prominent global player in both inbound and outbound capital flows. The country received a record USD 45.6 billion in foreign direct investment (FDI), accounting for 37% of total FDI flows in the Middle East and North Africa, while also making significant outbound investments in international projects, including USD 310 million in Morocco. These impressive results underscore the UAE’s reputation as a trusted and innovative partner for international investors and strategic projects worldwide.
The country’s President, Sheikh Mohammed bin Zayed, pursues a visionary, globally oriented policy that enables the UAE not only to assert leadership within the Gulf Cooperation Council (GCC) but also to gain global recognition as a reliable and strategic partner in international financial flows, strengthening the country’s role as a hub for innovation, infrastructure and the digital economy.
Although a small economy, Montenegro has strategically recognised the importance of modernising its financial sector, driving digital transformation and strengthening regulatory transparency. On 12 March 2025, the Montenegrin Parliament adopted the Law Amending the Law on the Prevention of Money Laundering and Terrorism Financing (Official Gazette of Montenegro, No. 24/2025), which came into force on 20 March 2025. The legislation introduced crucial innovations for the financial sector, including the regulation of crypto assets and gambling operators, the registration of crypto service providers, as well as mandatory education and training for prosecutors and police in monitoring and detecting suspicious transactions.
The measures also include monitoring the ultimate beneficial owners of companies and identifying money laundering typologies, thereby reducing the risk of misuse of the financial system and increasing capital security. Transparent application of AML/CFT standards and compliance with international norms provide investors from Europe, the United States and Asia with a reliable and predictable business environment.
At the same time, Montenegro has opened space for the development of the digital economy and the crypto industry, offering favourable conditions for innovative financial projects, blockchain initiatives and fintech start-ups. Through regional integration, infrastructure projects and public-private partnerships, the country is becoming a competitive destination for strategic investment and capital growth.
Data from the Central Bank of Montenegro show that total foreign direct investment (FDI) inflows in 2024 reached EUR 889.8 million, with net inflows amounting to EUR 489.9 million – 13% higher than in 2023. Most of this investment went into the real estate sector, while investment in companies and banks also recorded growth.
These reforms not only strengthen the regulatory framework but also substantially boost international confidence in Montenegro’s financial sector, positioning the country as an attractive destination for foreign investment in both traditional and digital finance, including crypto, infrastructure and innovation. The swift and effective implementation of reforms, the determined strategic engagement of the Government of Montenegro, and the highly proactive role of the Speaker of the Parliament of Montenegro, Andrija Mandić, make the country an exceptionally appealing destination for international investors, further establishing Montenegro as a reliable, innovative and strategically focused partner for capital projects.
Owing to these reforms and strategic initiatives, Montenegro has the potential to emerge as the jewel of the Adriatic – much as the United Arab Emirates is recognised as the jewel of the Persian Gulf, symbolising stability, innovation and international investment appeal.
By contrast, countries including Italy, Bulgaria, Malta, Kuwait, Saudi Arabia, Algeria and Lebanon continue to face serious shortcomings in the consistent application of AML/CFT standards. Italy struggles with weak implementation in the real estate, luxury services and banking sectors; Bulgaria is marked by high corruption and a lack of regulatory consistency; and Malta, despite having rules in place for the financial sector and online gambling, suffers from uneven enforcement. Kuwait and Saudi Arabia possess legal frameworks, yet implementation and international cooperation remain underdeveloped, while Algeria and Lebanon contend with a weak legislative framework, inadequate oversight and a high risk of money laundering.
In comparison, Belarus, the UAE and Montenegro demonstrate how systemic reforms, transparency and adherence to international standards can create a safe and predictable investment environment, attract capital and enable the development of innovative financial and crypto projects.[3]
The US administration and financial security – Trump’s 2025 strategy
Since January 2025, President Donald Trump’s administration has undertaken a series of strategic and decisive measures to bolster US financial security, combat money laundering and establish the country as a global leader in the digital economy. Widely regarded as one of the most effective administrations in the past three decades in tackling this issue, Trump’s team has shown a profound grasp of the complexities of the international financial system and an ability to implement regulatory reforms with remarkable efficiency.
In July 2025, Trump signed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), the first federal law to establish a comprehensive regulatory framework for stablecoins. The Act mandates full reserve backing, regular audits and strict adherence to anti-money laundering rules, paving the way for faster and more efficient cross-border payments while ensuring investor confidence and reinforcing the global standing of the US financial system.
The Executive Order establishing the Strategic Reserve of Bitcoin and US digital assets was signed on 6 March 2025, positioning the United States as a global leader in digital reserves policy. At the same time, the administration eased regulatory barriers for cryptocurrencies, facilitated the issuance of stablecoins and supported innovative financial products, thereby accelerating technological development in the financial sector and creating a stable, predictable environment for capital.
The Trump administration strictly applies FATF standards, the global guidelines for preventing money laundering and terrorism financing. This includes Know Your Customer (KYC) procedures, mandatory reporting of suspicious transactions, transparency of beneficial ownership and international cooperation. KYC procedures enable the efficient identification and verification of clients, preventing misuse of the financial system and further strengthening investor confidence.
The combination of legislative modernisation, strategic investments in digital assets, the reduction of regulatory barriers, and stronger international cooperation has positioned the United States under the Trump administration as a global leader in financial security and innovation. These measures underscore the administration’s reputation as one of the most effective in the past three decades in tackling key challenges to financial security, boosting investor confidence, safeguarding the stability and competitiveness of the US financial sector, and strengthening the country’s standing in the global economy in 2025.[4]
Conclusion
In the contemporary global financial landscape, stability, predictability, and capital security have become key factors for economic development and sustainable growth, particularly in an era of rapid advances in artificial intelligence and cryptocurrencies. Transparent regulation, rigorous enforcement of international anti-money laundering standards and effective oversight of financial flows help to mitigate risks, preserve market integrity and strengthen investor confidence, while simultaneously creating the conditions for the secure adoption of innovative technologies. Investments in the digital economy, blockchain and crypto initiatives further enhance the competitiveness and dynamism of the financial system, establishing a framework in which capital and innovation can coexist without jeopardising security.
At the global level, the aggressive and disruptive policies of major economic powers – including China, Russia and India – which pursue strategic dominance through control of markets, technologies and resources, underscore the need for reliable and predictable systems of capital oversight. In this context, the United States has a pivotal role to play in resisting these destabilising pressures and in actively supporting countries capable of upholding clear rules and effective regulatory frameworks, among them Belarus, the UAE, Montenegro, Turkey, Azerbaijan and Chile. Such support not only enhances the global stability of financial flows but also drives innovation, digital technologies and sustainable economic growth.
The capacity to enforce clear, effective and predictable rules in the financial sector has become a strategic imperative for global capital markets. Countries that build reliable supervisory systems, transparent regulation and consistent implementation of international standards secure a competitive advantage, attract strategic capital and reinforce international trust, while the United States and other democratic powers can play a pivotal role in shaping a stable, predictable and innovative global financial environment.[5]
[1] IFIMES – International Institute for Middle East and Balkan Studies, based in Ljubljana, Slovenia, has a special consultative status with the United Nations Economic and Social Council ECOSOC/UN in New York since 2018, and it is the publisher of the international scientific journal “European Perspectives.” Available at: https://www.europeanperspectives.org/en
[2] Strong AML/CFT frameworks ensure financial stability and investor confidence; weak implementation increases risks, while UAE, Bjelorusija, and Crna Gora are seen as more secure. Available at: https://www.fatf-gafi.org/content/dam/fatf-gafi/recommendations/FATF%20Recommendations%202012.pdf.coredownload.inline.pdf
[3] The World Bank has confirmed the progress of reforms in Belarus, the UAE, and Montenegro through financing projects that strengthen the financial sector, enhance anti-money laundering controls, and support the development of the digital economy. These investments include infrastructure development, regulation of the crypto industry, and implementation of AML/CFT standards, making these countries attractive destinations for international investors. (www.data360.worldbank.org , www.thedocs.worldbank.org , www.worldbank.org ).
[4] Making America the leader in digital assets. Available at: www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-signs-genius-act-into-law/?utm_source=chatgpt.com
[5] International Monetary Fund. (2025). Global Financial Stability Report – Enhancing Resilience amid Uncertainty. Available at: www.imf.org/en/Publications/GFSR?utm_source=chatgpt.com
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IFIMES – International Institute for Middle-East and Balkan studies, based in Ljubljana, Slovenia, has special consultative status with the Economic and Social Council ECOSOC/UN since 2018. IFIMES is also the publisher of the biannual international scientific journal European Perspectives. IFIMES gathers and selects various information and sources on key conflict areas in the world. The Institute analyses mutual relations among parties with an aim to promote the importance of reconciliation, early prevention/preventive diplomacy and disarmament/ confidence building measures in the regional or global conflict resolution of the existing conflicts and the role of preventive actions against new global disputes.
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