Decision on Procedures and Methods for the Exchange of Withdrawn Convertible Mark Banknotes

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Central Bank of Bosnia and Herzegovina

Pursuant to Article 2, paragraph 3, item h, and Articles 39 and 70 of the Law on the Central Bank of Bosnia and Herzegovina ("Official Gazette of BiH", nos. 1/97, 29/02, 8/03, 13/03, 14/03, 9/05, 76/06, and 32/07) and Article 4, paragraph (3) of the Decision on the Withdrawal from Circulation of Banknotes of Denominations 10, 20, 50, and 100 Convertible Marks Put into Circulation in the Period from 1998 to 2009 ("Official Gazette of BiH", no. 27/24), the Governing Board of the Central Bank of Bosnia and Herzegovina, at its 11th session held on October 31, 2025, adopts

DECISION on Procedures and Methods for the Exchange of Withdrawn Convertible Mark Banknotes

Article 1.
(Subject of the Decision)
(1) This Decision establishes the procedure for the exchange of Convertible Mark (KM) banknotes (hereinafter: KM) that have been withdrawn from circulation and ceased to be legal tender (hereinafter: out-of-circulation KM banknotes), which is carried out at the Central Bank of Bosnia and Herzegovina (hereinafter: Central Bank). (2) The out-of-circulation KM banknotes referred to in paragraph (1) of this Article are defined by the Decision on the Withdrawal from Circulation of Banknotes of Denominations 10, 20, 50, and 100 Convertible Marks Put into Circulation in the Period from 1998 to 2009 ("Official Gazette of BiH", no. 27/24).

Article 2.
(Deadlines for the Exchange of Out-of-Circulation KM Banknotes) (1) Commercial banks shall carry out the exchange of out-of-circulation KM banknotes during the period from January 1, 2025, to December 31, 2025, in accordance with the Decision referred to in Article 1, paragraph (2) of this Decision. (2) The Central Bank shall carry out the exchange of out-of-circulation KM banknotes after the expiration of the deadline referred to in paragraph (1) of this Article during the period from January 1, 2026, to December 31, 2035.

Article 3.
(Method and Place of Exchange of Out-of-Circulation KM Banknotes) (1) During the period specified in Article 2, paragraph (2) of this Decision, out-of-circulation KM banknotes may be exchanged by personal appearance at the organizational units of the Central Bank that include an organizational structure for treasury operations performing money authentication tasks, as follows:
a) Treasury Department of the Central Office of the Central Bank, Marshal Tito Street No. 25, Sarajevo, b) Treasury Department of the Main Bank of the Republika Srpska of the Central Bank of BiH, Vidovdanska Street No. 19, Banja Luka. (2) The applicant for the exchange of out-of-circulation KM banknotes (hereinafter: applicant) may be any natural or legal person wishing to perform the exchange. (3) If the value of the out-of-circulation KM banknotes submitted for exchange is less than 5,000.00 KM, the applicant is obliged to prove their identity, which is done by inspecting an official identification document (ID card or passport) and/or from other valid public documents, records, and registers, during which the Central Bank collects data on the first and last name and unique master number of the natural person, or the name and identification number of the legal person.

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(4) If the value of the out-of-circulation KM banknotes submitted for exchange amounts to 5,000.00 KM or more, the applicant is obliged to submit with the banknotes the "Application for Exchange of Out-of-Circulation KM Banknotes" on Form 1-Z, which is attached to this Decision and constitutes an integral part of it. (5) If out-of-circulation KM banknotes with a value of 20,000.00 KM or more are submitted for exchange, it is necessary to notify the arrival at least 48 hours before arriving at the organizational units referred to in paragraph (1) of this Article at the email addresses zamjena.novcanica.km.sa@cbbh.ba if the exchange is carried out in Sarajevo, or zamjena.novcanica.km.bl@cbbh.ba if the exchange is carried out in Banja Luka. (6) The exchange of out-of-circulation KM banknotes is carried out every working day during the period from 10:00 to 14:00 hours. The exchange is usually carried out on the same day in one appointment, except for amounts of out-of-circulation KM banknotes with a value of 20,000.00 KM or higher and/or for the purpose of determining compliance with the conditions for the exchange of out-of-circulation KM banknotes, in which cases the "Confirmation of Received and Retained Out-of-Circulation KM Banknotes" is issued to the applicant on Form 2-PoZ, which is attached to this Decision and constitutes an integral part of it. The Central Bank determines whether the conditions for the exchange of out-of-circulation KM banknotes are met within 60 (sixty) days from the date of receipt and retention of the banknotes. (7) Payment is made in KM banknotes, whereby the denomination structure of the paid banknotes is determined by the organizational structure for treasury operations where the exchange is performed.

Article 4.
(Conditions for the Exchange of Out-of-Circulation KM Banknotes) (1) If out-of-circulation KM banknotes that are complete, authentic, and without signs of damage or discoloration are being exchanged, the Central Bank, when exchanging banknotes:
a) performs authenticity checks on authenticity checking devices or manually by a trained official, using authenticity checking equipment; b) in the value of 5,000.00 KM or more, regardless of whether it is a one-time exchange or multiple exchanges that in total reach a value of 5,000.00 KM or more – collects:

• for a natural person, data from items a) to h) of paragraph (3) of this Article,
• for a legal person, data from items a), b), c), g), and h) of paragraph (3) of this Article;
  c) in the value of 20,000.00 KM or more, regardless of whether it is a one-time exchange or multiple exchanges that in total reach a value of 20,000.00 KM or more – in addition to the data from item b) of this paragraph, collects for both natural and legal persons the data from items i) and j) of paragraph (3) of this Article; d) regardless of the amount the applicant wishes to exchange, when there are indicators for the exchange of cash that suggest suspicion that a criminal offense related to the banknotes submitted for exchange has been committed, collects the data from item c) of this paragraph. (2) If out-of-circulation KM banknotes that are damaged are being exchanged, the exchange is carried out in accordance with the procedure established by the Decision on Handling Banknotes and Coins of the Convertible Mark Unsuitable for Circulation and Damaged Banknotes of Effective Foreign Currency ("Official Gazette of BiH", no. 88/24), during which data from items b) to d) of paragraph (1) of this Article are also collected. When exchanging banknotes from this paragraph, along with the "Application for Exchange of Damaged KM Money" prescribed by the Decision on Handling Banknotes and Coins of the Convertible Mark Unsuitable for Circulation and Damaged Banknotes of Effective Foreign Currency, the "Application for Exchange of Out-of-Circulation KM Banknotes" from this Decision is also submitted. (3) The Central Bank, when exchanging Convertible Mark banknotes from paragraphs (1) and (2) of this Article, collects from the applicant:
  a) first and last name of the natural person / name of the legal person (from the court or other competent registry);

3 / 7 b) unique master number, or for persons who do not have a unique master number, the identification number from the identification document on the basis of which the identity of the person is determined / identification number of the legal person; c) residence of the natural person, or seat of the legal person (country, city, street, and number); d) name and number of the identification document, issuing country; e) day, month, and year of birth; f) citizenship; g) phone number; h) email address (if available); i) origin of the cash submitted for exchange; j) information on activity or profession. (4) The Central Bank, in addition to collecting the data from paragraph (1) of this Article for the applicant, if the application is submitted by a legal representative or proxy, also collects the data from items a) to h) of paragraph (3) of this Article for the legal representative or proxy, who, upon submitting the application, is obliged to prove their identity and provide proof of authorization for representation, or a regular power of attorney. (5) When the Central Bank collects data from paragraphs (3) and (4) of this Article, the applicant is obliged to submit all documentation, available depending on the source, by which they confirm that their statements regarding the origin of the cash brought for exchange are true. (6) The Central Bank determines the data from paragraphs (3) and (4) of this Article by inspecting a valid identification document (ID card or passport) directly from the applicant, and from other valid public documents, records, and registers. (7) The Central Bank establishes the list of indicators for the exchange of cash referred to in paragraph (1), item d) of this Article. (8) The Central Bank will perform the exchange of out-of-circulation KM banknotes only if the following conditions from this Article are cumulatively met, namely when:
a) by authenticity check, it determines that the out-of-circulation KM banknotes are authentic; b) it determines that the applicant has submitted all complete data and made probable the statements regarding the origin of the cash.

Article 5.
(Confirmation of Payment of Banknotes Based on the Exchange of Out-of-Circulation KM Banknotes) (1) The Central Bank will issue to the applicant the "Confirmation of Payment of Banknotes Based on the Exchange of Out-of-Circulation KM Banknotes" on Form 3-PoI, which is attached to this Decision and constitutes an integral part of it. (2) The confirmation referred to in paragraph (1) of this Article contains at least the following elements:
a) the amount and quantity of KM banknotes based on the performed exchange of out-of-circulation KM banknotes, b) place and date of exchange, c) confirmation number, d) signature of the Central Bank official, e) a note that the confirmation cannot be used as proof of the origin of money.

Article 6.
(Handling of Suspicious and Counterfeit Banknotes by the Central Bank) (1) The Central Bank retains suspicious banknotes that it receives or that it separates when performing banknote exchange operations for the purpose of conducting technical analysis. (2) If technical analysis determines that the suspicious KM banknotes are counterfeit, they will be retained.

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(3) The Central Bank will, in accordance with valid procedures, notify the applicant and the authorities competent for the investigation of criminal offenses about the handling referred to in paragraph (2) of this Article.

Article 7.
(Informing Other Authorities)
(1) If there are indicators that the banknotes submitted for exchange are suspected to be connected with the criminal offense of money laundering and financing of terrorism, the Central Bank will, for the purpose of preventing them, notify the Financial Intelligence Unit of the Agency for Investigations and Protection of Bosnia and Herzegovina and submit the data about the applicant that it collected in accordance with Article 4 of this Decision. (2) The Central Bank will act in the manner stated in paragraph (1) of this Article also in the case when banknotes with a value of 20,000.00 KM or more are submitted for exchange, regardless of whether it is a one-time exchange or multiple exchanges that in total reach a value of 20,000.00 KM or more.

Article 8.
(Forms)
The following attachments constitute an integral part of this Decision:
a) Form 1-Z - "Application for Exchange of Out-of-Circulation KM Banknotes" b) Form 2-PoZ - "Confirmation of Received and Retained Out-of-Circulation KM Banknotes" and c) Form 3-PoI - "Confirmation of Payment of Banknotes Based on the Exchange of Out-of-Circulation KM Banknotes".

Article 9.
(Entry into Force)
(1) This Decision enters into force on the eighth day from the date of publication in the "Official Gazette of BiH", and will be applied from January 1, 2026.
(2) This Decision will also be published in the "Official Gazette of the Federation of BiH", "Official Gazette of the Republika Srpska", and "Official Gazette of the Brčko District of BiH".

Chairperson
Number: UV-122-02-1-1696-3/25 of the Governing Board of the Sarajevo, October 31, 2025 Central Bank of Bosnia and Herzegovina GOVERNOR Dr. Jasmina Selimović

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Number:
Place and date:
Based on the Decision on Procedures and Methods for the Exchange of Withdrawn Convertible Mark Banknotes, the following is submitted:

A P P L I C A T I O N for the exchange of out-of-circulation KM banknotes

I DATA ON THE APPLICANT
First and last name of the natural person / Name of the legal person:
UMN / UIN:
Residence of the natural person / Seat of the legal person (street and number):
City, Country:
Name and number of identification document, issuing country:
Day, month, and year of birth:
Citizenship:
Phone:
Email address (if available):

I-a ADDITIONAL DATA ON THE APPLICANT – ONLY FOR AMOUNTS ABOVE 20,000.00 KM Origin of banknotes submitted for exchange:
Profession/Activity:

II SPECIFICATION OF OUT-OF-CIRCULATION KM BANKNOTES FOR EXCHANGE DENOMINATION QUANTITY VALUE 100 50 20 10 TOTAL:
Applicant:
___________________________ *The application is submitted in one original copy which is retained by the Central Bank of Bosnia and Herzegovina.
*For out-of-circulation KM banknotes that are damaged, along with the submission of this application, a duly completed "Application for Exchange of Damaged KM Money" prescribed by the Decision on Handling Banknotes and Coins of the Convertible Mark Unsuitable for Circulation and Damaged Banknotes of Effective Foreign Currency is also submitted. *If the applicant submits banknotes for exchange through a legal representative or proxy, proof of authorization for representation/power of attorney is submitted along with the application. *By my own signature, I confirm that I am aware that the Central Bank of Bosnia and Herzegovina will, if it determines that the conditions for the exchange of out-of-circulation KM banknotes are not met in accordance with the Decision on Procedures and Methods for the Exchange of Withdrawn Convertible Mark Banknotes, retain the submitted out-of-circulation KM banknotes without any compensation. *Under full material and criminal responsibility, as the applicant of this application, I confirm by my own signature that the entered data are accurate and complete.

Form 1-Z

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Number:
Place and date:
Based on the Decision on Procedures and Methods for the Exchange of Withdrawn Convertible Mark Banknotes, the following is issued:

C O N F I R M A T I O N of received and retained out-of-circulation KM banknotes

Out-of-circulation KM banknotes received on __________ upon application number ______________ are temporarily retained for the purpose of determining compliance with the conditions for the exchange of out-of-circulation KM banknotes. It is confirmed that the following out-of-circulation KM banknotes were received and retained:

DENOMINATION QUANTITY VALUE
100
50
20
10
TOTAL:
The Central Bank of Bosnia and Herzegovina determines whether the conditions for the exchange of out-of-circulation KM banknotes are met within 60 (sixty) days from the date of receipt and retention of the banknotes.

Received by: Handed over by:
___________________________ ___________________________ Official of the Central Bank Applicant of Bosnia and Herzegovina

*Payment of banknotes will be made based on the Confirmation of Payment of Banknotes Based on the Exchange of Out-of-Circulation KM Banknotes – Form 3-PoI.

Form 2-PoZ

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Number:
Place and date:
Based on the Decision on Procedures and Methods for the Exchange of Withdrawn Convertible Mark Banknotes, the following is issued:

C O N F I R M A T I O N of payment of banknotes based on the exchange of out-of-circulation KM banknotes

After control and determination of the basis for exchange, payment was made based on the exchange of out-of-circulation KM banknotes, in banknotes as follows:

DENOMINATION QUANTITY VALUE
100
50
20
10
TOTAL:
Handed over by: Received by:
___________________________ ___________________________ Official of the Central Bank Applicant of Bosnia and Herzegovina

*NOTE: The confirmation is issued as proof of the exchange of out-of-circulation KM banknotes and cannot be used as proof of the origin of the money submitted for exchange.

Form 3-PoI