Financial transfers between the federal and the Montenegrin budgets stopped at the end of 1998. Montenegro took control of its borders: in spring 1999 it waived visa requirements for foreign visitors and in August 1999 it began to collect customs duties. Serbia also had customs posts on the border with Montenegro. In November 1999, Montenegro introduced the German Mark as its official currency. It also created its own foreign service. In 2000 there were Montenegrin representation offices in Washington, Brussels, London, Rome Ljubljana, Sarajevo and Berlin.
Milosevic was toppled in Belgrade in October 2000. By then Montenegro had built most of the institutions of an independent state. In fact, the only federal institutions that continued to operate in Montenegro were the Yugoslav army and Yugoslav air space control.