Decision on Handling Suspected Counterfeit Cash

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Central Bank of Bosnia and Herzegovina

Pursuant to Article 2, paragraph 3, item h), Article 7, items b) and e), and Articles 39, 43, and 70, in conjunction with Article 47 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), the Governing Board of the Central Bank of Bosnia and Herzegovina, at its 1st session held on January 29, 2026, adopts

DECISION

on the handling of suspected counterfeit cash

Article 1. (Subject and Purpose) (1) This Decision regulates the handling of cash suspected to be counterfeit and establishes measures for the detection, withdrawal, and analysis of counterfeit cash. (2) The purpose of this Decision is to protect the integrity of cash by establishing measures to protect cash from counterfeiting, i.e., measures that ensure that cash is in circulation exclusively in accordance with regulations governing lawful means of payment.

Article 2. (Alignment with European Union Regulations) This Decision aligns with Council Regulation (EC) No. 1338/2001 of June 28, 2001, laying down measures necessary for the protection of the euro against counterfeiting, and Council Regulation (EC) No. 1339/2001 of June 28, 2001, extending the effects of Regulation (EC) No. 1338/2001 laying down measures necessary for the protection of the euro against counterfeiting to those Member States which have not adopted the euro as their single currency, as well as the obligation of non-member states that have signed a cooperation (stabilization and association) agreement.

Article 3. (Terms) The terms used in this Decision have the following meanings: a) cash refers to banknotes and coins of the convertible mark and foreign currency that have the status of legal tender; b) suspected cash refers to banknotes and coins whose authenticity cannot be clearly determined by manual processing or processing with devices, or for which there are sufficient grounds to suspect counterfeiting; c) counterfeit cash refers to banknotes and coins expressed in convertible marks and foreign currency that partially or fully resemble the appearance of banknotes or coins of the convertible mark or foreign cash, for which technical analysis has determined that they are partially or fully unauthorizedly produced or modified. Counterfeit cash also includes banknotes and coins that have ceased to be legal tender and are partially or fully unauthorizedly produced or modified; d) trained employee refers to an employee of the obligated entity who has undergone training at the Central Bank of Bosnia and Herzegovina (hereinafter: Central Bank) and obtained the status of an instructor for the procedure of checking the authenticity of banknotes and coins, or an employee of the obligated entity who has undergone training at an instructor; e) checking the authenticity of cash refers to the procedure of checking cash for the purpose of separating suspected specimens; f) technical analysis refers to the procedure of determining the authenticity of suspected cash at the Central Bank, or, in the case of confirmed counterfeits, the procedure of determining the method of production, imitation of features, and other technical details; g) technical and statistical data refers to data by which counterfeit banknotes and coins can be recognized (technical description of the type of counterfeit) and data on the number of counterfeit banknotes and coins, according to their origin, particularly geographical; h) processing of cash refers to the procedure of counting and checking the authenticity and suitability of banknotes and coins, manually and/or via devices.

Article 4. (Determining the Authenticity of Suspected Cash) (1) The only lawful means of payment in Bosnia and Herzegovina are banknotes and coins issued by the Central Bank. (2) If there is suspicion that banknotes and coins as lawful means of payment in Bosnia and Herzegovina or foreign banknotes and coins are counterfeit, the suspected cash must be submitted for technical analysis to the Central Bank, which determines its authenticity.

Article 5. (Handling of Authorities Competent for Combating Counterfeiting with Suspected Cash) (1) Authorities competent for combating counterfeiting permit the Central Bank to inspect cash suspected to be counterfeit and submit to the Central Bank without delay for analysis and identification necessary samples of all types of banknotes and coins suspected to be counterfeit, as well as the technical and statistical data they possess. (2) The provision from paragraph (1) of this Article is applied in such a way that it does not prevent the use or retention of cash suspected to be counterfeit as evidence material in criminal proceedings.

Article 6. (Handling of the Central Bank with Suspected and Counterfeit Cash) (1) The Central Bank conducts technical analysis of every suspected banknote and coin it receives. (2) The Central Bank is obliged to submit the results of the technical analysis to the applicant. (3) If technical analysis determines that the cash is counterfeit, the Central Bank retains the cash and withdraws it from circulation. (4) If technical analysis determines that the submitted cash is not counterfeit, the Central Bank returns the cash to the applicant. (5) Suspected cash and counterfeit cash may be submitted to competent institutions abroad for the purpose of verifying the results of technical analysis, classifying counterfeits, or for other purposes that the Central Bank deems justified. (6) The Central Bank stores counterfeit cash.

Article 7. (Database on Counterfeit Cash) (1) The Central Bank maintains a unified database of technical and statistical data on counterfeit cash in Bosnia and Herzegovina for the purpose of data exchange in the fight against counterfeit cash. (2) Authorities competent for combating counterfeit cash, within their competence, have the right to access the database from paragraph (1) of this Article. (3) The Central Bank may grant access to the database from paragraph (1) of this Article to other authorities in the country and abroad for the purpose of preventing counterfeit cash and faster detection of counterfeits. (4) Access to the database for authorities from paragraphs (1) and (2) of this Article will be enabled when the Central Bank ensures the necessary technical conditions.

Article 8. (Handling of the Central Bank upon Request of Investigative Authorities) (1) The Central Bank, upon order of the competent court or prosecutor's office, or upon request of police authorities in Bosnia and Herzegovina, performs technical analysis of banknotes and coins. (2) The results of the technical analysis performed for the needs of criminal proceedings are submitted to the competent authority from paragraph (1) of this Article that requested the technical analysis by act. (3) The Central Bank, for the needs of criminal proceedings or proceedings preceding it, submits counterfeit cash to the competent authority from paragraph (1) of this Article upon written request. (4) The Central Bank makes information on the occurrence and characteristics of counterfeit cash available to the competent authority from paragraph (1) of this Article. (5) The Central Bank destroys counterfeit cash in accordance with the act of the competent court or prosecutor's office.

Article 9. (Handling of Obligated Entities with Suspected Cash) (1) Obligated entities required to handle suspected cash are banks with headquarters in Bosnia and Herzegovina, other payment service providers in the performance of payment transactions, and all other legal entities participating in the processing of banknotes and coins and their distribution to the public, including institutions whose activity consists of the exchange of banknotes and coins of different currencies, such as authorized exchange offices. (2) Obligated entities from paragraph (1) of this Article are obliged to perform authenticity checks on all specimens of received cash in accordance with the Central Bank's regulation on checking the authenticity and suitability of cash. (3) If, during the authenticity check of received cash, the obligated entity determines that the cash is suspected, it is obliged to retain it and submit it without delay to the Central Bank for technical analysis, with a completed "Request for Technical Analysis of Suspected Cash," which is attached to this Decision and constitutes an integral part of it. (4) The obligated entity is obliged to issue a certificate of retention of the cash to the bearer of the suspected cash, indicating the date, quantity, denomination, and serial numbers (for banknotes). (5) If technical analysis at the Central Bank determines that the cash from paragraph (3) of this Article is not counterfeit, the obligated entity immediately, after receiving the results of the technical analysis and the return of the cash, informs the bearer and returns the cash to him. (6) The provisions of this Article apply to cash that has ceased to have the status of legal tender, if its authenticity is doubted.

Article 10. (Center at the Central Bank) For the purpose of implementing measures to prevent counterfeit cash and more effective detection of counterfeit cash, and for the purpose of cooperation with authorized institutions in the country and abroad in preventing counterfeiting and detecting counterfeit cash, the Central Bank establishes the Center for Combating Counterfeiting, Banknote Analysis, and Coin Analysis.

Article 11. (Center for Combating Counterfeiting, Banknote Analysis, and Coin Analysis) The Center for Combating Counterfeiting, Banknote Analysis, and Coin Analysis is competent to: a) receive and register requests with suspected cash; b) collect technical and statistical data on counterfeit cash, form a system for monitoring registered counterfeit cash, and make data on counterfeit cash available to authorized users; c) determine the technical and statistical data on counterfeit cash that constitute the system for monitoring registered counterfeit cash, including the detailed content of the database, functions necessary for system management, network and communications, and security aspects; d) prepare and disseminate information on the occurrence of counterfeit cash and cooperate with competent authorities and bodies in the country and abroad; e) participate in the preparation and implementation of cooperation agreements in the field of preventing counterfeiting and detecting counterfeit cash with authorized authorities and bodies in the country and abroad; f) organize and conduct training for employees of obligated entities (trained employees) and other interested participants handling banknotes and coins, for the purpose of preventing counterfeiting and detecting counterfeit cash; g) cooperate with manufacturers and suppliers of devices for determining the authenticity of banknotes and coins; h) take, in accordance with valid legal regulations, all necessary measures to prevent unauthorized reproduction of banknotes and coins and infringement of copyright over the design of banknotes and coins; i) perform technical analysis of all suspected specimens of banknotes and coins and prepare reports thereon; j) classify counterfeit banknotes and counterfeit coins; k) prepare reports on the occurrence of counterfeit banknotes and counterfeit coins; l) store all specimens of registered counterfeit banknotes and counterfeit coins; m) form sets of counterfeit banknotes and counterfeit coins for the purposes of education and testing devices. (2) The Center from paragraph (1) of this Article will begin operations no later than within one year from the date of entry into force of this Decision, and during that period, all necessary activities will be undertaken to ensure the functioning of the Center. (3) Until the start of operations of the Center from paragraph (1) of this Article, the tasks and activities from this Decision regarding cash suspected to be counterfeit are performed by the organizational unit competent for treasury affairs at the Central Bank.

Article 12. (Inter-institutional Cooperation for the Protection of Cash from Counterfeiting) (1) The Central Bank cooperates with all competent institutions at all levels of government in Bosnia and Herzegovina and with all competent institutions abroad in the fight against counterfeiting of banknotes and coins, with the aim of preventing counterfeiting and detecting counterfeits. (2) For the purpose of implementing the cooperation from paragraph (1) of this Article, the Governor of the Central Bank may conclude cooperation agreements with authorized institutions in the country and abroad and other cooperation agreements that he deems necessary for the purpose of protection against counterfeiting of cash.

Article 13. (Implementation of the Decision) The Governor of the Central Bank is authorized to adopt regulations necessary for the implementation of this Decision.

Article 14. (Entry into Force) (1) This Decision enters into force on the eighth day from the date of publication in the "Official Gazette of BiH". (2) This Decision is also published in the "Official Gazette of the Federation of BiH", "Official Gazette of the Republic of Srpska", and "Official Gazette of the Brčko District of BiH".

Chairwoman Number: UV-122-02-1-242-16/26 of the Governing Board of the Central Bank Sarajevo, January 29, 2026 of Bosnia and Herzegovina

GOVERNOR Dr. Jasmina Selimović

Number: Applicant's Number Place and Date: Place and Date of Request

REQUEST FOR TECHNICAL ANALYSIS OF SUSPECTED CASH

Applicant Enter data JIB Enter data Address Enter data Name and surname of contact person Enter data Phone number Enter data Electronic address Enter data

TYPE OF CASH: ☐ banknotes ☐ coins TYPE OF CURRENCY: ☐ KM ☐ EUR ☐ Enter currency name

SERIAL NUMBER | DENOMINATION | NUMBER OF PIECES | SERIAL NUMBER 1 | SERIAL NUMBER 2 | YEAR OF ISSUE ☐ Specification of suspected cash delivered in Attachment 1

METHOD OF DISCOVERY: ☐ sorting at the Central Bank of BiH ☐ within the financial institution - Back office ☐ upon entry into the financial institution - at the counter ☐ public/trade ☐ police seizure ☐ other: Enter data

DATE OF DISCOVERY: Enter date PLACE OF DISCOVERY: Enter place CASH DISCOVERED IN CIRCULATION: ☐ YES ☐ NO 1 This field is marked in the case of a larger number of banknotes/coins, and their specification is delivered as an attachment to this Request. The attachment must contain a table of the same format, and the header of the attachment must state the same number as in the header of the Request.

DATA ON THE PERSON FROM WHOM SUSPECTED CASH WAS SEIZED Name and surname/legal entity name Enter data Address/headquarters Enter data JMB/JIB Enter data Phone number Enter data

DETAILS OF DISCOVERY OF SUSPECTED CASH ATTACHMENTS: List everything delivered in the attachment to the Request NOTE: Enter note

Applicant Filled by the Central Bank of BiH Date of Receipt of Request: Receipt Number: NOTE: Received by: Official of the Central Bank of BiH

The Request is submitted in one original copy which is retained by the Central Bank of BiH. If the form is delivered in two copies, the second copy (duplicate) is certified and returned to the applicant as confirmation of submission.

Enter all known data related to the discovery of suspected cash (deposit of a business unit, another legal entity, or client, deposit machine, etc.). Copies of documents containing relevant data may be delivered in the attachment.