Decision on the Procedure and Method for the Exchange of Withdrawn Convertible Mark Banknotes

Based on 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 Issued 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on the Procedure and Method for the Exchange of Withdrawn Convertible Mark Banknotes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This Decision establishes the procedure for the exchange of convertible mark banknotes (hereinafter: KM) that have been withdrawn from circulation and ceased to be legal tender (hereinafter: out-of-circulation KM banknotes), which is carried out at the Central Bank of Bosnia and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 Issued 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 exchange of out-of-circulation KM banknotes after the expiration of the deadline referred to in paragraph (1) of this Article shall be carried out by the Central Bank 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 form for treasury operations performing money authentication tasks, as follows:
Treasury Department of the Central Office of the Central Bank, Marshal Tito Street No. 25, Sarajevo, Treasury Department of the Main Bank of the Republic of 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 required 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. (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 required to submit the "Application for the Exchange of Out-of-Circulation KM Banknotes" on Form 1-Z, which is attached to this Decision and forms an integral part of it, along with the banknotes. (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 to 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 determining compliance with the conditions for the exchange of out-of-circulation KM banknotes, in which cases the applicant is issued a "Confirmation of Received and Retained Out-of-Circulation KM Banknotes" on Form 2-PoZ, which is attached to this Decision and forms 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 form for treasury operations where the exchange is carried out.

Article 4

(Conditions for the Exchange of Out-of-Circulation KM Banknotes) (1) If out-of-circulation KM banknotes that are intact, authentic, and without signs of damage or discoloration are being exchanged, the Central Bank, during the exchange of banknotes:
performs authenticity checks on authenticity checking devices or manually by a trained official, using authenticity checking equipment; for values of 5,000.00 KM or higher, regardless of whether it is a one-time exchange or multiple exchanges that in total reach a value of 5,000.00 KM or higher – collects:
for natural persons the data from points a) to h) of paragraph (3) of this Article, for legal persons the data from points a), b), c), g), and h) of paragraph (3) of this Article; for values of 20,000.00 KM or higher, regardless of whether it is a one-time exchange or multiple exchanges that in total reach a value of 20,000.00 KM or higher – in addition to the data from point b) of this paragraph, collects for both natural and legal persons the data from points i) and j) of paragraph (3) of this Article; independently of the amount the applicant wishes to exchange, when there are indicators for the exchange of cash that suggest suspicion of a criminal offense related to the banknotes submitted for exchange, collects the data from point 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 the Handling of Convertible Mark Banknotes and Coins Unsuitable for Circulation and Damaged Banknotes of Effective Foreign Currency ("Official Gazette of BiH", no. 88/24), during which data from points b) to d) of paragraph (1) of this Article are also collected. When exchanging banknotes under this paragraph, the "Application for the Exchange of Damaged KM Banknotes" prescribed by the Decision on the Handling of Convertible Mark Banknotes and Coins Unsuitable for Circulation and Damaged Banknotes of Effective Foreign Currency is submitted along with the "Application for the Exchange of Out-of-Circulation KM Banknotes" from this Decision. (3) The Central Bank, during the exchange of convertible mark banknotes under paragraphs (1) and (2) of this Article, collects from the applicant:
first and last name of the natural person / name of the legal person (from court or other competent registry); unique master number, or for persons without a unique master number, the identification number from the identification document based on which the identity of the person is determined / identification number of the legal person; residence of the natural person, or seat of the legal person (country, city, street, and number); name and number of the identification document, issuing country; day, month, and year of birth; citizenship; phone number; email address (if available); origin of the cash submitted for exchange; 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 points a) to h) of paragraph (3) of this Article for the legal representative or proxy, who, upon submitting the application, is required to prove their identity and provide proof of authorization to represent, or a regular power of attorney. (5) When the Central Bank collects data from paragraphs (3) and (4) of this Article, the applicant is required to submit all available documentation, depending on the source, which confirms 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 of this Article are cumulatively met, namely when:
authenticity checks determine that the out-of-circulation KM banknotes are authentic; it is determined that the applicant has submitted all complete data and made plausible 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 forms an integral part of it. (2) The confirmation referred to in paragraph (1) of this Article contains at least the following elements:
amount and quantity of KM banknotes based on the performed exchange of out-of-circulation KM banknotes, place and date of exchange, confirmation number, signature of the Central Bank official, 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 separates during the performance of 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. (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 the same, notify the Financial Intelligence Unit of the Agency for Investigations and Protection of Bosnia and Herzegovina and submit the data about the applicant collected in accordance with Article 4 of this Decision. (2) The Central Bank will act in the manner specified in paragraph (1) of this Article also in the case where banknotes with a value of 20,000.00 KM or higher 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 higher.

Article 8

(Forms)
The following attachments form an integral part of this Decision:
Form 1-Z -
"Application for the Exchange of Out-of-Circulation KM Banknotes" Form 2-PoZ - "Confirmation of Received and Retained Out-of-Circulation KM Banknotes" and 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 Republic of Srpska", and "Official Gazette of the Brčko District of BiH".

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

Based on the Decision on the Procedure and Method for the Exchange of Withdrawn Convertible Mark Banknotes, the following is submitted:

APPLICATION

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:

Unique Master Number (JMB) / Identification Number (JIB):

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 the 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 this application, a duly completed "Application for the Exchange of Damaged KM Banknotes" prescribed by the Decision on the Handling of Convertible Mark Banknotes and Coins Unsuitable for Circulation and Damaged Banknotes of Effective Foreign Currency is submitted. *If the applicant submits banknotes for exchange through a legal representative or proxy, proof of authorization to represent/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 the Procedure and Method 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
Number:
Place and Date:

Based on the Decision on the Procedure and Method for the Exchange of Withdrawn Convertible Mark Banknotes, the following is issued:

CONFIRMATION

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 received and retained out-of-circulation KM banknotes are as follows:

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: Handled by:
___________________________ ___________________________ Official of the Central Bank Applicant of Bosnia and Herzegovina

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

Form 2-PoZ
Number:
Place and Date:

Based on the Decision on the Procedure and Method for the Exchange of Withdrawn Convertible Mark Banknotes, the following is issued:

CONFIRMATION

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 carried out 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