Decision on Detailed Conditions and Manner of Performing the Supervision of Foreign Exchange Operations of Residents and Non-Residents

RS Official Gazette, No 41/2025
Pursuant to Article 46, paragraph 1 of the Law on Foreign Exchange Operations (RS Official Gazette, Nos 62/2006, 31/2011, 119/2012, 139/2014, 30/2018 and 19/2025) and Article 15, paragraph 1 of the Law on the National Bank of Serbia (RS Official Gazette, Nos 72/2003, 55/2004, 85/2005 – other law, 44/2010, 76/2012, 106/2012, 14/2015, 40/2015 – CC decision, 44/2018 and 19/2025), the Executive Board of the National Bank of Serbia issues the following D E C I S I O N ON DETAILED CONDITIONS AND MANNER OF PERFORMING THE SUPERVISION OF FOREIGN EXCHANGE OPERATIONS OF RESIDENTS AND NON-RESIDENTS Basic provisions

1. This Decision stipulates detailed conditions and manner of performing
   the supervision of foreign exchange operations of residents and non-residents – natural and legal persons (hereinafter: supervised entities) and/or the supervision procedure, as well as the measures to be taken with regard to the supervised entity in this procedure, and other issues relevant for the procedure.
2. The purpose of supervision referred to in Section 1 hereof shall be to
   verify and determine the legality and regularity of the supervised entity’s performance of foreign exchange operations in accordance with the Law on Foreign Exchange Operations (hereinafter: Law) and other regulations governing foreign exchange operations. Conditions and manner of conducting supervision
3. The NBS shall conduct the supervision referred to in Section 1 hereof
   (hereinafter: supervision) in the following manner:

1. off-site – by collecting, monitoring, verifying and analysing the
   reports and other documents submitted by the supervised entity in accordance with the Law and NBS regulations adopted based on the Law, and/or upon the NBS’s request, and other documents and/or data on foreign exchange operations of the supervised entity available to the NBS;
2. on-site – in the premises of the supervised entity, and/or entities
   which are in property, management or business relations with the supervised entity – by examining business books, agreements and other documents related to foreign exchange operations of the supervised entity, and/or the operations of that entity.

The decisions, reports, and other acts, as well as notifications, requests and other communications of the NBS submitted to the supervised entity in relation to the supervision referred to in this Section shall be considered to have also been submitted to the responsible person of the supervised entity and no proof to the contrary shall be admissible. When conducting supervision, the NBS shall cooperate with the Tax Administration, customs authorities, police, and/or other competent authorities. This cooperation shall mean, in particular, the exchange of data, findings and information required for the supervision. Working day, within the meaning of this Decision, is any day other than Saturday, Sunday and public and religious holiday declared non-working day in the Republic of Serbia. Off-site supervision
4. When conducting off-site supervision, the NBS may require the
supervised entity to deliver reports, and/or documents, information and statements within the deadline defined in the request, concerning in particular the following:

1. payments, collections and transfers between residents and non￾residents in foreign means of payment and in dinars;
2. payments, collections and transfers between residents in foreign
   means of payment;
3. purchase and sale of means of payment between residents and
   non-residents, including purchase and sale of foreign means of payment between residents;
4. unilateral transfers of means of payment – personal and physical
   transfers from the Republic of Serbia and to the Republic of Serbia which do not have the characteristics of transactions between residents and non￾residents;
5. current and deposit accounts of residents abroad and non-residents
   in the Republic of Serbia;
6. foreign credit operations;
7. other foreign exchange operations.

5. If it establishes in the course of supervision that the supervised entity
   has committed irregularities in the performance of foreign exchange operations, the NBS shall make a report on completed off-site supervision.

The procedure after the report on off-site supervision is made shall be subject to the provisions of this Decision referring to on-site supervision. On-site supervision
6. On-site supervision shall be carried out by the NBS staff appointed by
the decision of the governor or a person authorised by the governor (hereinafter: authorised persons). The decision referred to in paragraph 1 of this Section shall specify in particular: the supervised entity, the subject of supervision and the date of commencement of supervision. The decision from paragraph 1 of this Section may be supplemented and/or amended during the course of on-site supervision. On-site supervision of an entity commences with the issuance of the decision from paragraph 1 of this Section. This decision shall be delivered to the representative, and/or other authorised person of the supervised entity or other person employed by the supervised entity who happens to be in its business premises when the NBS staff arrive in those premises. In addition to the delivery referred to in paragraph 4 of this Section, the supervised entity – natural person may also be invited to the NBS’s premises to receive the decision referred to in paragraph 1 of this Section. During the on-site supervision, the authorised persons shall have with them the decision referred to in paragraph 1 of this Section and the official identification document, which will enable their identification and the determination of their capacity of persons authorised to conduct such supervision. The NBS may notify in writing the supervised entity about the initiated on-site supervision of foreign exchange operations and require the provision of information and documents necessary for the supervision. The NBS may hire other persons to take part in the on-site supervision for the purposes of providing adequate expert support to authorised persons when conducting such supervision.
7. A supervised entity shall enable unhindered supervision to an
authorised person and shall cooperate with that person.

For the purpose of conduct of on-site supervision, a supervised entity shall provide for inspection to the authorised person the business books, documents and data required by the authorised person – in paper or electronically and shall enable unhindered and full access to equipment, data bases, computer programmes used, and/or other information system resources. If the business books, documents and data from paragraph 2 of this
Section are in a language other than Serbian, the NBS may require the
supervised entity to have those documents and data translated into Serbian by a court-sworn interpreter at their own cost.
8. When conducting on-site supervision, an authorised person may
undertake the following actions:

1. access all organisational units and premises of the supervised
   entity;
2. request copies of documents concerning the subject of supervision
   and/or technical support for access to electronic business books;
3. inspect business premises, objects, devices and equipment in
   connection with the subject of supervision;
4. directly communicate with members of managing bodies and/or
   managers, responsible persons and staff in the supervised entity to obtain information and explanations, and/or written statements relating to the subject of supervision;
5. establish the identity of the persons performing the operations that
   are under supervision and the identity of the responsible persons of the supervised entity;
6. request refraining from any action that is contrary to the provisions
   of the Law and other regulations.
   Members of managing bodies, and/or managers, responsible persons of the supervised entity and other persons shall give to the authorised person, at his request, answers to the questions asked, in writing and within the deadline set in the request and they shall also provide evidence relating to those answers as needed.

9. In the course of on-site supervision of an entity, the NBS and/or the
   authorised person may temporarily seize from the supervised entity foreign exchange, foreign currency cash, cheques, securities, dinars, electronic money, digital assets, payment cards, objects, business books, records, official documents and other documentation – if there is reasonable doubt that they have been used or intended for committing a criminal offence, misdemeanour

or another punishable action, or that they have been acquired or originated from a criminal offence, misdemeanour or another punishable action. If the business books, records, documents or other documentation referred to in paragraph 1 of this Section are stored on a durable medium or other automated data processing devices, the NBS may also temporarily seize such medium and/or those devices. The authorised person shall issue a certificate on temporarily seized assets and objects referred to in paragraphs 1 and 2 of this Section. Temporary seizing of foreign exchange and dinars from paragraph 1 of this Section that are in the monetary accounts of the supervised entity shall be performed pursuant to the NBS decision ordering the blocking of these assets and their transfer to the account of the NBS. The authorised person shall immediately and no later than two working days following the seizing of assets and objects from paragraphs 1 and 2 of this Section:

1. deposit foreign currency cash, cheques and securities – to the
   special purpose account of the NBS or in the NBS depository;
2. deposit dinar cash – to the account of the NBS;
3. deposit payment cards, objects, official documents and
   documentation, durable mediums and automated data processing devices – in the NBS depository or in another appropriate place. The temporary seizing of electronic money from paragraph 1 of this
   Section shall be performed based on the NBS’s decision ordering the electronic
   money institution to block the account where the electronic money from paragraph 1 of this Section is held and to carry out forced redemption of such money, after which the electronic money institution shall credit the funds to the account of the NBS. The temporary seizing of digital assets from paragraph 1 of this Section shall be performed based on the NBS’s decision transferring these assets to a digital asset address controlled by the NBS or ordering the digital asset service provider to transfer virtual currencies to the account of the NBS opened with a digital asset service provider. Following the temporary seizing of assets and objects from paragraphs 1 and 2 of this Section, the NBS shall launch an appropriate procedure before the competent authority.

Prevention of supervision
10. It is considered that the supervised entity failed to enable the NBS to
conduct supervision within the meaning of this Decision if it did not act in accordance with Sections 4, 7 and 8 hereof or if it did not allow temporary seizure of foreign exchange, foreign currency cash, cheques, securities, dinars, electronic money, digital assets, payment cards, objects, business books, records, official documents or documentation from Section 9, paragraph 1 of the Decision, including the following cases:

1. if the supervised entity cannot be found at the address registered
   with the competent authority or fails to respond to the invitation of the NBS from
   Section 6, paragraph 5 of this Decision;
2. if the authorised person is provided with incorrect or incomplete
   information intentionally or as a result of gross negligence;
3. if the supervised entity fails to deliver and/or make available to the
   authorised person within the set deadline all the required data and documents and/or evidence, particularly the data that the entity is required to have in accordance with the Law and other regulation;
4. if the conditions necessary for the exercise of supervision have not
   been provided to the authorised person, and/or if it is not ensured that this person is unhindered in the exercise of supervision by the entity’s employees or third parties. In the case from paragraph 1 of this Section, the authorised person shall prepare a report on the prevention of supervision. In accordance with the provisions of Article 46d of the Law, the NBS may issue a decision imposing a fine in respect of the supervised entity and ordering the supervised entity to enable supervision immediately and no later than within three working days following the receipt of the decision and to cooperate with the authorised persons of the NBS. The decision from paragraph 2 of this Section shall contain the manner and the deadline for the payment of the fine and the deadline for submitting evidence of payment of the fine. By means of the decision from paragraph 2 hereof, the National Bank of Serbia may also order the freezing of funds in all accounts of the supervised entity until it complies with the order from that decision, except for the funds needed to pay the fine referred to in that decision and/or to settle tax obligations.

After being served to the supervised entity and/or the responsible person in the supervised entity – legal entity, the decision from paragraph 2 of this Section shall be an enforceable document. Enforceable decisions on imposing the fine shall constitute the grounds for enforced collection from the supervised entity’s account in accordance with the law governing the enforcement of claims by debiting the client’s account. If the supervised entity has failed to comply with the order from the decision from paragraph 2 of this Section, the NBS may issue the decision from that paragraph again. Report on supervision and other documents
11. The authorised person shall prepare a report on completed on-site
supervision (hereinafter: report on supervision).
The report on supervision shall specifically include the following details:
date of the report, subject of supervision and the relevant data, findings on established factual situation and the signature of the person who made the report. The NBS shall deliver the report on supervision to the supervised entity, which may file objections within eight working days from the day of receiving the report. The supervised entity’s objections to the report, including evidence, shall be signed by the authorised person of that entity.
12. If, by examining the objections from Section 11, paragraph 4 hereof, it
establishes that the factual situation significantly differs from the situation described in the report on supervision, the NBS shall supplement the report (hereinafter: supplement to the report) and deliver it to the supervised entity within fifteen working days from receiving those objections. The NBS may verify the statements presented in the objections from this Section also directly at the supervised entity.
13. The NBS shall not consider the supervised entity’s objections relating
to a change in the factual situation that occurred after the completion of supervision (cut-off date), but may consider them when issuing the order and the fines referred to in the Law and in this Decision.

14. If the delivered objections to the report on supervision are unfounded,
    if they do not substantially change the factual situation established by the supervision, and/or if they do not lead to a change in the findings of the established irregularities, the NBS shall make an official note thereof and deliver it to the supervised entity within eight working days from the day of receiving the objections.
15. The NBS may, at all times, correct the report on supervision and
    remove technical errors and other obvious inaccuracies. The correction of the report on supervision shall be delivered to the supervised entity.
16. The NBS shall issue a decision on the termination of supervision in the
    following cases:

1. if the report on supervision establishes no irregularities or only minor
   irregularities;
2. if the supervised entity refutes in its objections and within the
   prescribed deadline all the findings in the report on supervision or refutes some of those findings so that the remaining irregularities are less significant. The Decision from paragraph 1 of this Section shall be delivered to the supervised entity. Orders and fines

17. If based on the factual situation described in the report on supervision,
    an irregularity in the performance of foreign exchange operations of the supervised entity is established, the NBS shall issue a decision ordering the supervised entity to eliminate the established irregularity within the set deadline, and/or to align its operations with the provisions of the Law and/or the NBS regulation issued based on the Law. The supervised entity shall act pursuant to the decision from paragraph 1 of this Section, in the manner and within the deadlines set by that decision. The supervised entity shall notify the NBS in writing that it has carried out the order from the decision referred to in paragraph 1 of this Section and deliver a report with appropriate evidence thereof within the deadline set by the NBS in the decision which cannot be longer than three working days from the expiry of the deadline for eliminating the established irregularities from that decision.

The NBS shall verify compliance with the order from the decision from paragraph 1 of this Section based on the delivered report and evidence from paragraph 3 of this Section. In order to determine whether the supervised entity has complied with the order from the decision referred to in paragraph 1 of this Section, the NBS may again conduct on-site supervision of foreign exchange operations of that supervised entity. If it finds that the established irregularities were fully eliminated within the set deadline, the authorised person shall draw up an official note thereof.
18. If the supervised entity fails to comply with the decision from Section 17
of this Decision, the NBS may, in accordance with the provisions of Article 46d of the Law, issue a decision imposing a fine in respect of such supervised entity and/or its responsible person, and order such person to act in accordance with the order referred to in Section 17 of this Decision. The decision referred to in paragraph 1 of this Section shall lay down the manner and deadline for paying the fine, deadline for submitting evidence of payment of the fine, and deadline for submitting a report on executed orders, with appropriate evidence. By means of the decision referred to in paragraph 1 of this Section, the National Bank of Serbia may also order the freezing of funds in all accounts of the supervised entity until it complies with the order from that decision, except for the funds needed to pay the fine referred to in that decision and/or to settle tax obligations. After being served to the supervised entity and/or the responsible person in the supervised entity – legal entity, the decision referred to in paragraph 1 of this Section shall be an enforceable document. Enforceable decisions on imposing the fine referred to herein shall constitute the grounds for enforced collection from the supervised entity’s account in accordance with the law governing the enforcement of claims by debiting the client’s account. Where a supervised entity fails to comply with the order referred to in paragraph 1 hereof, the National Bank of Serbia may again issue the decision referred to in that paragraph.
19. When imposing the fine referred to in Sections 10 and 18 of this
Decision, the National Bank of Serbia shall take into account all facts relating

to the supervision, and in particular the degree of cooperation of the supervised entity with authorised persons, previous conduct of the supervised entity, i.e. whether the supervised entity and the responsible person in the supervised entity had previously acted in a similar way or were fined for such action, the demonstrated readiness to comply with the order from the decision, the duration of non-compliance with the order or failure to enable the supervision, and other important circumstances which have resulted in non-compliance with the order. Confidentiality in the supervision procedure
20. The data which the authorised persons and employees in the NBS, and
other persons hired within the meaning of this Decision, learn in any way during the procedure of supervision of foreign exchange operations and the documents containing such data, including the measures and fines imposed by the NBS in the supervision procedure, shall be determined and protected as confidential with the degree of confidentiality marked as "CONFIDENTIAL" or "RESTRICTED" in accordance with the law governing data secrecy. The persons referred to in paragraph 1 of this Section shall keep the data and documents from that paragraph as secret and/or shall not make them available to third parties except in the cases prescribed by the law. The obligation to preserve data secrecy for persons from paragraph 1 of this Section shall not end with the termination of their employment with the NBS and/or with the termination of another capacity based on which those persons had access to the data referred to in that paragraph. Notwithstanding paragraph 2 of this Section, the NBS may make the data and documents referred to in paragraph 1 of this Section available to domestic and foreign supervisory authorities on condition that those authorities use them solely for the purposes for which they were obtained. The publishing of the data referred to in paragraph 1 of this Section in aggregate form, so that the identity of the supervised entity, and/or of natural persons and legal entities, cannot be established on that basis, shall not be considered a breach of the data secrecy obligation. Transitional and closing provisions
21. The Decision on Conditions and Manner of Performing the Supervision
of Foreign Exchange Operations of Residents and Non-Residents (RS Official Gazette, No 84/2018) shall cease to be valid as of the start of implementation of this Decision.

22. The procedures of supervision of foreign exchange operations of
    residents and non-residents initiated before 14 March 2025 shall be completed in accordance with the provisions of the regulations subject to which they were initiated.
23. This Decision shall enter into force on the eighth day from its publication
    in the RS Official Gazette.
    NBS Executive Board No 22 Chairperson
    9 May 2025 of the NBS Executive Board
    B e o g r a d G o v e r n o r
    National Bank of Serbia
    Dr Jorgovanka Tabaković, sign.