Decision on the Procedure for Deposit/Withdrawal of Cash in the Vaults of the Central Bank of Bosnia and Herzegovina

CENTRAL BANK OF BOSNIA AND HERZEGOVINA

Based on Article 45 of the Law on the Central Bank of Bosnia and Herzegovina ("Official Gazette of BiH", 1/97, 29/02, 13/03, 14/03, 9/05, 76/06 and 32/07) and Article 49, paragraph (2) of the Central Bank of Bosnia and Herzegovina Regulation, UV-104-01-1-116/15 of December 28, 2015, the Administrative Board of the Central Bank of Bosnia and Herzegovina, at its 1st meeting on January 31, 2017, adopts

DECISION on the procedure for deposit/withdrawal of cash in the vaults of the Central Bank of Bosnia and Herzegovina

PART ONE – Introduction

Article 1. (Subject) (1) This Decision regulates the procedure for deposit/withdrawal of cash in/from the Treasury Department of the Sector for Monetary Operations, Foreign Exchange Reserves and Cash Management of the Central Office of the Central Bank (hereinafter: Treasury Department), organizational forms for treasury operations of main units and branches of the Central Bank (hereinafter: separate treasuries), and vaults rented by the Central Bank based on a contract for its own needs (hereinafter: rented vaults), (hereinafter: Central Bank vaults and competent treasury) by commercial banks, the arrival and stay of persons accompanying commercial bank valuables in Central Bank premises, as well as the entry of vehicles into areas under the control of the Central Bank, and the rights and obligations of the Central Bank and commercial banks in the procedure for deposit/withdrawal of cash. (2) In the procedure for deposit/withdrawal of cash within the meaning of paragraph (1) of this Article, the Central Bank acts in accordance with the Law on the Central Bank of Bosnia and Herzegovina (hereinafter: Law on the Central Bank) and regulations of the Central Bank governing work with cash.

PART TWO – Procedure for Deposit/Withdrawal of Cash – Request

Article 2. (EMTN Platform) (1) The procedure for deposit/withdrawal of cash – Request is conducted via the electronic interbank money market platform, in accordance with the user instruction – Procedure for conducting commercial bank operations with the Central Bank, via the electronic interbank money market platform – EMTN (hereinafter: EMTN and EMTN User Instruction). Documentation exchanged in this manner is considered authentic for the purpose of conducting and performing the procedure for deposit/withdrawal of cash. (2) A commercial bank is obliged to submit to the Main Bank of the Republic of Srpska of the Central Bank of BiH in Banja Luka in organizational form for monitoring and payment traffic – in normal mode of operation, or organizational form for payment systems of the Central Office – in reserve mode of operation, a list of certified officials for work on the EMTN platform, or all changes to the list with corresponding data. (3) The organizational forms of the Central Bank referred to in paragraph (2) of this Article, depending on whether it is normal or reserve mode of operation, are responsible for immediately updating and forwarding the list and changes to the list of certified officials, in accordance with the data submitted by the commercial bank, to the competent treasuries.

Article 3. (Requests for the procedure for deposit/withdrawal of cash) (1) A commercial bank is obliged to coordinate and confirm its arrival with the Central Bank by submitting duly completed forms to the competent treasury via EMTN, for the purpose of performing the procedure for deposit/withdrawal of cash in/from the competent treasury in which it wishes to perform the deposit/withdrawal of cash, as follows: a) Request for deposit of cash in convertible marks (Form 01), (hereinafter: Request and KM), b) Request for withdrawal of cash in convertible marks (Form 01-1), (hereinafter: Request), c) Request for deposit/withdrawal of cash in foreign currency (Form 02), (hereinafter: Request), d) Request for deposit/withdrawal of cash (Form for the competent organizational form for security of the organizational unit in which the competent treasury is located), (2) A commercial bank submits the forms from paragraph (1) of this Article exclusively to the competent treasury in the place where the procedure for deposit/withdrawal of cash is performed. (3) A commercial bank is obliged to submit the forms from paragraph (1) of this Article in advance, on the previous working day, no later than 14:30 hours, for the next working day, which is considered a regular arrival. (4) A commercial bank may submit the forms from paragraph (3) of this Article after 14:30 hours of the current working day for the next working day, as well as during the current working day at least two hours before the requested arrival time. If the request is accepted and approved by the head of the competent treasury or the official replacing him in his absence, the approved arrival time will be considered an extraordinary arrival. (5) The Central Bank, when withdrawing cash in KM from a commercial bank, reserves the right to modify the specification of the requested denomination structure based on the submitted Request, in order to establish an optimal denomination structure of cash in circulation. (6) After the competent treasury accepts the Request and approves the date and time of the procedure for deposit/withdrawal of cash and the denomination structure, the Request as final is sent to the commercial bank, and the commercial bank is obliged to comply with it.

Article 4. (Work in case of system failure) (1) In the event of an EMTN system failure, the Request for the procedure for deposit/withdrawal of cash is submitted via the Message Encryption Program (hereinafter: PGP program) or by personal delivery of documentation or, exceptionally, via fax. (2) If a commercial bank submits the Request to the competent treasury for the procedure for deposit/withdrawal of cash via PGP program, personal delivery of documentation, or via fax, it is obliged to submit all documentation prescribed by this Decision within the time limits from Article 3, paragraphs (3) and (4) of this Decision, with the exception that a commercial bank that submitted the Request via fax is obliged to present the original documentation upon arrival at the competent treasury. (3) Forms from Article 3, paragraph (1) of this Decision, in the case of personal delivery, must be clearly filled out, certified with a stamp and signed by the commercial bank. (4) A commercial bank cannot unilaterally delete, cross out, add, or otherwise modify the data contained in the forms from the previous paragraph after their exchange with the competent treasury, regardless of the causes requiring changes. (5) Data submitted in one of the ways from Articles 2 and 3 are considered confidential.

Article 5. (Written Withdrawal) (1) When causes arise on the side of the commercial bank that require changes to data in already submitted forms attached to the Request, or due to objective reasons, the commercial bank submits new forms or withdraws from the announced procedure for deposit/withdrawal of cash, it is obliged to timely, and no later than two hours before the requested or approved arrival time, notify the competent treasury: a) to confirm withdrawal from the sent Request, with an explanation of the reasons for withdrawal, if it is a Request sent via EMTN, or b) to submit a Written Withdrawal (Form 01-PO), (hereinafter: Written Withdrawal), if it is a Request sent via one of the methods from Article 4 of this Decision in the event of an EMTN system failure. (2) Confirmation of withdrawal from the sent Request or submission of the Written Withdrawal, in accordance with the previous paragraph, is a condition that the commercial bank is obliged to fulfill for the competent treasury to accept a new Request.

Article 6. (List of Persons with Signatures) (1) A commercial bank is obliged to submit to the competent treasury the original list of persons authorized to represent the commercial bank and to sign Forms in the procedure for deposit/withdrawal of cash with signatures, on the form List of Persons with Signatures (Form 01-SPES) (hereinafter: List of Persons with Signatures). (2) The Director of the commercial bank, or a person authorized by him, certifies the List of Persons with Signatures with a signature and stamp, which contains: a) the name and surname of the person, their position, the handwritten signature of the person (abbreviated signature or initialing is not acceptable), the method of signing (collective – individual), b) the logo of the commercial bank and the impression of the stamp, seal, or mark that the commercial bank will use on the forms. (3) In the event of changes to the data and facts from the previous paragraph, the commercial bank is obliged to submit a new List of Persons with Signatures to the competent treasury, which applies on the first working day after receipt in the competent treasury. (4) Competent treasuries archive the Lists of Persons with Signatures and update any changes.

Article 7. (Lists of Persons and Vehicles) (1) A commercial bank is obliged to submit in advance to the competent treasury for the procedure for deposit/withdrawal of cash: a) the original list of persons and vehicles of the commercial bank on the form List of Persons and Vehicles (Form 01-ODP), (hereinafter: List of Persons and Vehicles), with data on authorized persons for the procedure for deposit/withdrawal of cash in the premises of the Central Bank, escorts and drivers with corresponding data on vehicles (type, color, and license plate numbers), b) the original list of authorized persons authorized for deposit/withdrawal of cash in the premises of the Central Bank (persons listed in point a) of this paragraph) with deposited signatures on the form List of Authorized Persons (Form 01-SOL), (hereinafter: List of Authorized Persons), which contains the name and surname, ID card number, and handwritten signature of the authorized person. (2) The lists from paragraph (1) of this Article must be certified by the director of the commercial bank, or a person authorized by him. (3) In the event of changes to the data in the lists from paragraph (1) of this Article, the commercial bank is obliged to submit new lists to the competent treasury, which apply on the first working day after receipt in the competent treasury. (4) Competent treasuries archive the Lists of Persons and Vehicles and Lists of Authorized Persons and update any changes. (5) The competent treasury is obliged to send a copy of the List of Persons and Vehicles to the competent organizational form for security of the organizational unit of the Central Bank in which the competent treasury is located.

Article 8. (Restrictions) (1) In order to safely perform the procedure for deposit/withdrawal of cash between the competent treasury and commercial banks, any oral or telephone arrangement and agreement on arrival times, types, and amounts of cash transactions in the procedure for deposit/withdrawal of cash is strictly prohibited. (2) In the procedure for deposit/withdrawal of cash between the competent treasury and commercial banks, the deposit/withdrawal of cash via consignment shipment is not allowed, except for damaged banknotes whose damage resulted from dyeing due to the action of electrochemical equipment for banknote protection (hereinafter: banknotes damaged by dyeing). (3) In the procedure for deposit/withdrawal of cash, an authorized person of the commercial bank is obliged to present an ID card to the cashiers of the competent treasury, proving their identity in relation to the realization of submitted documents from Article 3 of this Decision. (4) The deposit/withdrawal of foreign currency banknotes suitable for circulation is performed in such a way that in the Treasury Department, banknotes of foreign currency EUR, USD, GBP, and CHF are deposited/withdrawn, while separate treasuries of the Central Bank deposit/withdraw exclusively EUR currency banknotes. (5) The competent treasury may proceed with the realization of the procedure for deposit/withdrawal of foreign currency only after receiving approval from the organizational form for banking of the organizational unit of the Central Bank where the commercial bank's reserve account is maintained.

Article 9. (Working Hours) (1) Working hours with commercial banks in competent treasuries are every working day from Monday to Friday, from 8:30 to 14:00 hours. (2) In unforeseen circumstances assessed and accepted by the head of the Treasury Department, or the director/head of the main unit/branch or officials replacing them in their absence, working hours for work with commercial banks may be restricted or extended while unforeseen circumstances last.

Article 10. (Arrival Times) (1) The competent treasury will ensure one daily arrival for the commercial bank, for performing the procedure for deposit/withdrawal of cash. (2) In exceptional circumstances, if it does not disrupt the operation of the competent treasury (depending on the number of commercial banks ensured one arrival), heads of competent treasuries, or officials replacing them in their absence, may allow the commercial bank an additional arrival time.

PART THREE – Withdrawal of Cash by the Commercial Bank

Article 11. (Teller Order for Payment) Based on the confirmed Request, an authorized person of the commercial bank withdraws cash from the cashier of the competent treasury in accordance with the approved "Teller Order for Payment", which after the completion of the deposit/withdrawal of cash, is signed by the cashiers of the competent treasury and the authorized person of the commercial bank. The authorized person of the commercial bank retains one copy of the realized "Teller Order for Payment" for the needs of the commercial bank, and the remaining three copies are retained by the Central Bank for its needs.

Article 12. (Method of Withdrawing Cash) (1) An authorized person of the commercial bank withdraws cash from the competent treasury packaged in bundles/bales (banknotes), or sacks (coins), or original packaging (coins) – without bulk. (2) The minimum quantity of cash in KM for withdrawal per denomination is 1,000 pieces, except for banknotes of denomination 200 KM, for which the minimum packaging is a package of 100 pieces with the corresponding strap/tie. (3) The minimum quantity of foreign currency cash for withdrawal per denomination is a package of 100 pieces with the corresponding strap/tie. (4) An authorized person of the commercial bank is obliged, upon withdrawal, to perform a visual inspection of the cash in such a way that: a) they check whether the total quantity of cash withdrawn corresponds to the data in the "Teller Order for Payment", b) whether each bundle/bale contains 10 packages of the same denomination of banknotes, or whether smaller packages of banknotes of denomination 200 KM and foreign currency contain the corresponding number of packages, c) they check the declared data on the corresponding packaging of coins. (5) Justified objections, identified on the spot, the authorized person of the commercial bank is obliged to resolve immediately with the cashiers of the competent treasury who performed the procedure for depositing cash to the commercial bank. (6) A commercial bank has no right to subsequent complaint regarding the amount of cash withdrawn concerning facts related to the performed visual inspection of the withdrawn cash. (7) Packages of banknotes of denomination 200 KM and foreign currency are withdrawn in such a way that, regardless of whether it is one package or more, all must be cross-tied with plastic tape, as a bundle/bale or in another agreed manner. (8) The other agreed manner of packaging in the sense of this Decision implies packaging of cash that prevents its scattering in the procedure for deposit/withdrawal.

Article 13. (Control in Commercial Banks) (1) After withdrawing cash from the competent treasury of the Central Bank, the commercial bank is obliged in its own treasury to immediately perform a commission control counting of the cash (content of banknote packages and corresponding packaging of coins), place its straps/ties on banknote packages, or cards – labels on coin packaging, and only then proceed with further manipulation. (2) A commercial bank must not put into circulation cash with straps or cards – labels of the Central Bank. (3) If a commercial bank, during the control counting of cash withdrawn from the competent treasury, finds a discrepancy compared to the withdrawn state, it is obliged within 24 hours, counting from the hour of withdrawal of cash in the premises of the competent treasury, to send a complaint based on the compiled and signed Minutes of the commission of the commercial bank, which the commercial bank submits to the competent treasury from which it withdrew the cash. (4) The head of the Treasury Department, director/head of the main unit/branch in which the competent treasury is located, where the withdrawal of cash by the commercial bank was performed in accordance with this Decision and the regulation of the Central Bank governing work with shortage/surplus of cash, will review the complaint submitted in written form (Minutes of the commercial bank from paragraph (3) of this Article) and based on an inspection of all circumstances and the entire documentation on the specific cash transaction, assess the justification of the complaint, and will notify the commercial bank in writing.

PART FOUR – Deposit of Cash by the Commercial Bank

Article 14. (Teller Order for Deposit) Based on the confirmed Request, an authorized person of the commercial bank deposits cash with the cashiers of the competent treasury in accordance with the approved "Teller Order for Deposit", which after the completion of the deposit/withdrawal of cash is signed by the authorized person of the commercial bank and the cashiers of the competent treasury. The authorized person of the commercial bank retains one copy of the realized "Teller Order for Deposit" for the needs of the commercial bank, and the remaining three copies are retained by the Central Bank for its needs.

Article 15. (Deposit of Cash in KM) A commercial bank is obliged to sort the cash it deposits into the competent treasury by separating cash suitable for circulation from cash not suitable for circulation and depositing them separately into the competent treasury.

Article 16. (Deposit of Cash Suitable for Circulation) (1) The minimum quantity of cash in KM for deposit suitable for circulation per denomination is 1,000 pieces, except for banknotes of denomination 200 KM. (2) A commercial bank depositing cash is obliged to prepare banknotes and coins suitable for circulation in the following manner: a) align banknotes neatly without curled edges and the like, fold (front to front) by denomination, in packages of 100 pieces with the corresponding strap/tie on which is the mark of the commercial bank's treasury, state the number of pieces, denomination structure, signature, and date, and from 10 packages of the same denomination form a bundle/bale (1,000 pieces) which is cross-tied with plastic tape that ensures the bundle/bale is firmly and neatly tied, which prevents the withdrawal of banknotes from the bundle/bale, b) banknotes of denomination 200 KM to be packaged and deposited in packages of 100 pieces (package of 100 pieces with the corresponding strap/tie). One or more packages of 100 pieces of banknotes must be tied as a bundle/bale in the manner from paragraph (2) point a) of this Article or in another agreed manner from Article 12, paragraph (8) of this Decision. c) coins to be packaged in sacks of 1,000 pieces of the same denomination with cards/labels containing the same data as straps/ties for packaging banknotes. (3) Cashiers of the competent treasury, upon deposit of cash in KM from a commercial bank, are obliged to perform a visual inspection of the cash in such a way that: a) they check whether the total quantity of cash deposited corresponds to the data in the "Teller Order for Deposit", b) they check whether each bundle/bale contains 10 packages of the same denomination of banknotes, or whether smaller packages of banknotes of denomination 200 KM contain the corresponding number of packages, c) they check the declared data on the corresponding packaging of coins. (4) If cashiers, during visual inspection, find a discrepancy in the quantity of deposited cash compared to the accompanying documentation, they will compile a Minutes of Discrepancy upon Deposit of Cash during Visual Inspection (Form 01-ZNVK) (hereinafter: Minutes of Discrepancy) based on which the commercial bank will issue a new Request via EMTN, otherwise the money will be returned to the authorized person of the commercial bank. (5) The Minutes of Discrepancy is compiled in two copies signed by the cashiers of the competent treasury and the authorized person of the commercial bank.

Article 17. (Deposit of Cash Not Suitable for Circulation) (1) A commercial bank depositing cash is obliged to prepare and deposit banknotes and coins not suitable for circulation in the following manner: a) worn and damaged KM banknotes to be deposited in such a way that at least 100 pieces of the same denomination are sorted and prepared in accordance with Article 16, paragraph (2) point a) of this Decision. Regardless of whether it is one package or more, all must be cross-tied with plastic tape, as a bundle/bale or in another agreed manner from Article 12, paragraph (8) of this Decision. b) damaged KM coins to be deposited without limitation of minimum quantity or number of pieces per denomination, c) money withdrawn from circulation to be deposited without limitation of minimum quantity or number of pieces per denomination. (2) Cashiers of the competent treasury, upon deposit of cash not suitable for circulation from a commercial bank, are obliged to perform a visual inspection of the cash in such a way that: a) they check whether the total quantity of cash not suitable for circulation deposited corresponds to the data in the "Teller Order for Deposit", b) they check whether each bundle/bale contains 10 packages of the same denomination of banknotes, or whether smaller packages of cash not suitable for circulation contain the corresponding number of packages, c) they check the declared data on the corresponding packaging of damaged KM coins and cash not suitable for circulation. (3) If cashiers, during visual inspection, find a discrepancy in the quantity of deposited cash compared to the accompanying documentation, they will proceed in accordance with Article 16, paragraphs (4) and (5) of this Decision.

Article 18. (Rights and Obligations of the Competent Treasury Regarding Withdrawal of Cash) (1) After the completion of the deposit of cash from a commercial bank from Articles 16 and 17 of this Decision, the competent treasury has no right to subsequent complaint regarding the amount of cash withdrawn concerning facts related to the visual inspection of the withdrawn cash. (2) The competent treasury reserves the right not to perform the withdrawal of cash if the commercial bank does not fully comply with the packaging method established by this Decision. (3) The competent treasury forwards withdrawn cash from commercial banks for further control, processing, and counting.

Article 19. (Deposit of Foreign Currency) (1) A commercial bank may deposit foreign currency banknotes in the competent treasury packaged in quantities of 100 pieces per denomination, in such a way that one or more packages of 100 pieces of banknotes must be tied as a bundle/bale or in another agreed manner from Article 12, paragraph (8) of this Decision. (2) The competent treasury checks whether the total quantity of foreign currency deposited corresponds to the data in the "Teller Order for Deposit". (3) If, during the control, processing, and counting of foreign currency banknotes, the competent treasury finds damaged foreign currency banknotes in the deposit, such banknotes will be returned to the commercial bank in the manner from Article 23 of this Decision. (4) In the case from paragraph (3) of this Article, the Central Bank will, based on the minutes-confirmed discrepancy, issue a new "Teller Order for Deposit" which is signed by the cashiers of the competent treasury and the authorized person of the commercial bank who simultaneously withdraws the damaged foreign currency banknotes. (5) Exceptionally, if it concerns large quantities of foreign currency, cashiers of the competent treasury will visually check whether the total quantity of foreign currency deposited corresponds to the data in the "Teller Order for Deposit", after which they will submit the money for control, processing, and counting. If s