Law on Amendments and Supplements to the Law on the Central Bank of Bosnia and Herzegovina

Law on Amendments and Supplements to the Law on the Central Bank of Bosnia and Herzegovina PUBLISHED: ("Official Gazette of BiH", 9/05)

Based on Article VII.1 of the Constitution of Bosnia and Herzegovina, the Parliamentary Assembly of Bosnia and Herzegovina, at the session of the House of Representatives held on February 18, 2005, and at the session of the House of Peoples held on February 22, 2005, adopted

LAW
ON AMENDMENTS AND SUPPLEMENTS TO THE LAW ON
THE CENTRAL BANK OF BOSNIA AND HERZEGOVINA

Article 1.
In the Law on the Central Bank of Bosnia and Herzegovina ("Official Gazette of BiH", No. 1/97, 29/02, 8/03, 13/03 and 14/03), (hereinafter: the Law), in paragraph 3 of Article 2, after point h, a new point "i" is added, which reads:
"i. to carry out actions in assisting the fight against money laundering, to assist anti-terrorism measures and measures against obstruction of the implementation of the General Framework Agreement for Peace in Bosnia and Herzegovina, which relate to banks."

Article 2.
In Article 7, in point h, the words: "Chief Controller" are replaced with the words: "Chief Internal Auditor".

Article 3.
In Article 20, in the title and text of paragraphs 1 to 4, as well as in the entire text of the Law, the words: "Chief Controller" are replaced with the words: "Chief Internal Auditor" in the appropriate case.

Article 4.

In Article 25, paragraph 1 is amended and reads:
"1. The initial capital of the Central Bank has a value of 25 million convertible marks."

Article 5.

Article 27 is amended and reads:

"Article 27.
Distribution of the Net Profit of the Central Bank If the Central Bank realizes a net profit in any year, the net profit shall be distributed by the Board of Governors applying the following order of priorities:
a. a portion of the net profit is set aside to the account of the general reserve of the Central Bank, such that the amount of the initial capital and the general reserve is equivalent to five percent of the total amount of monetary liabilities (as defined in Article 31 of the Law) shown on the accounts of the Central Bank at the end of that financial year; b. the remaining net profit is distributed such that 40 percent the Board of Governors distributes by its decision for the increase of capital and reserves for the general reserves of the Central Bank, and 60 percent the Central Bank pays into the account of the institution responsible for the Budget of Bosnia and Herzegovina, within a period of four months after the end of the budget year;
c. net unrealized profit is distributed to the account of the estimated value of reserves, which is kept in the balance sheet of the Central Bank."

Article 6.
Article 28 is amended and reads:
"Article 28.
Allocation of the Net Loss of the Central Bank

If the Central Bank realizes a net loss in any budget year, the net loss shall be allocated as follows:

a. if the net loss contains net unrealized loss, it is allocated to the account of the estimated value of reserves or, if the balance of the account of the estimated value of reserves, as a result of such allocation, would be negative, that amount is allocated to the general reserves, up to the amount in which the balance of the general reserves, as a result of such allocation, would not be negative; b. the remaining loss consisting of net realized losses is charged to the general reserves up to the amount in which the balance of the general reserves, as a result of such allocation, would not be negative."

Article 7.
Article 29 is amended and reads:
"Article 29.
Covering the Deficit in the Capital of the Central Bank Whenever:
a. on the quarterly preliminary balance sheet (without audit) of the Central Bank, which is prepared in accordance with Article 64 of the Law, the value of its assets falls below the amount of its liabilities and capital and reserves, or b. the amount of the general reserves of the Central Bank for any financial year is insufficient to cover the net loss as defined in Article 28 of the Law, within two months after the submission of the balance sheet, the ministry responsible for the Budget of Bosnia and Herzegovina provides convertible marks in the amount or amounts necessary to cover the deficit."

Article 8.
In Article 30, the word: "unreduced" is deleted.

Article 9.
The distribution of the net profit of the Central Bank, in accordance with Article 5 of this Law (Article 17 of the Law), shall be carried out based on the achieved business results for the financial year 2004, no later than February 28, 2005.

Article 10.
Entry into Force
This Law shall enter into force on the day following the day of its publication in the "Official Gazette of BiH", and shall also be published in the official gazettes of the entities and the Brčko District of Bosnia and Herzegovina.

PSBiH No. 150/05
February 22, 2005
Sarajevo

Chairman of the
House of Representatives
Chairman of the
House of Peoples
Parliamentary Assembly of BiH
Parliamentary Assembly of BiH

Šefik Džaferović, s.r.
Velimir Jukić, s.r.