Decision on Terms and Conditions of Performing Foreign Payment Transactions

RS Official Gazette, Nos 24/2007, 31/2007, 38/2010, 111/2015 and 13/2025 Pursuant to Article 32, paragraph 4 of the Law on Foreign Exchange Operations ("RS Official Gazette", No 62/2006), the Governor of the National Bank of Serbia hereby issues DECISION ОN TERMS AND CONDITIONS OF PERFORMING FOREIGN PAYMENT TRANSACTIONS

1. This Decision shall set forth terms and conditions of effecting
   payments, collection of payments and transfers in foreign exchange and dinars under current and capital transactions.
2. Payments, collection of payments and transfers referred to in Section
   1 hereof shall be performed through the account of a bank authorized by the National Bank of Serbia to engage in foreign payment and credit transactions (hereinafter: bank) and through the account of a foreign bank with a bank in the Republic of Serbia, in the manner specified by this Decision and by the guidelines referred to in Section 15 of that Decision.
3. Payments, collection of payments and transfers referred to in Section
   1 hereof shall be performed by submitting foreign payment orders. The National Bank of Serbia shall prescribe contents of payment orders from the above paragraph 1 by the guidelines referred to in Section 15 hereof. Notwithstanding paragraphs 1 and 2 of this Section, payments, collection of payments and transfers carried out within the Single Euro Payments Area (SEPA) in accordance with the decision governing special requirements for credit transfers and direct debits in euro shall be executed in compliance with the SEPA rules for the execution of payment transactions within the meaning of that decision. Notwithstanding paragraphs 1 and 2 of this Section, payments, collection of payments and transfers from special foreign exchange accounts opened for the purposes of clearing and financial settlement of transactions in respect of electricity trading in the organised electricity market in the Republic of Serbia may be performed also based on direct debit of accounts of participants in that market, and/or based on a standing order issued by a participant to the agent bank for the financial settlement of transactions referred to in this paragraph, in accordance with the agreement concluded with that bank.

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4. A bank shall notify the resident whose name appears on the payment
order received from the foreign bank (hereinafter: beneficiary) of the collection of payment on the same day, and at latest on the first business day after receiving cover for the execution of such payment order. On the same day or on the first business day after receiving the notification referred to in paragraph 1 hereof, the beneficiary shall submit to the bank all data necessary for execution of the payment in respect of collection referred to therein and enclose supporting document, should it be prescribed as a condition for payment order execution. Obligations from paragraphs 1 and 2 hereof shall be performed on the same day if the conditions are met by 10 a.m. or, if not, on the following business day.
5. Collection of payments referred to in Section 4, paragraph 1 hereof
shall be performed by crediting the beneficiary’s account in the currency of collection on the same day or on the first business day after data specified in paragraph 2 hereof are received. If the beneficiary is a natural person, the bank may effect the payment in cash at his/her request. Obligations referred to in paragraph 2 of this Section shall be performed within the time specified in Section 4, paragraph 3 hereof. For the purpose of effecting payment in respect of collection, a beneficiary other than a resident whose goods or services have been exported, shall also submit to the bank a request that such resident’s account be credited.
6. If the details necessary for crediting the beneficiary’s account are not
submitted to the bank within the time specified in Section 5 hereof, the bank shall credit its account payable for designated payments in respect of collections from abroad. 6a. The provisions of Sections 4 to 6 of this Decision shall not apply to the collection of payments referred to in Section 3, paragraph 3 of this Decision. The bank shall execute the collection referred to in paragraph 1 of this
Section by crediting the funds, without delay, to the account of the collection
beneficiary, provided that the funds for the execution of the collection have been credited in its account, and/or if it has received, in accordance with the rules set out in Section 3, paragraph 3 of this Decision, the information necessary for crediting the account of the collection beneficiary.

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The bank shall enable the collection beneficiary referred to in paragraph 1 of this Section to access the funds immediately after they are credited to the beneficiary’s account. The collection beneficiary referred to in paragraph 1 of this Section shall, upon receiving notification from the bank that the funds have been credited to its account, submit to the bank, on the same or the next business day, in accordance with the guidelines referred to in Section 15 of this Decision, the details of the collection grounds, as well as the document underlying the collection, if the submission of such a document is mandatory.
7. Banks may execute foreign payments and/or transfers abroad only if
such payments are in compliance with the Law on Foreign Exchange Operations.
8. For effecting a foreign payment, the resident shall submit the payment
order to the bank, which contains data prescribed by the guidelines referred to in Section 15 of this Decision and for which funds have been provided in the bank. Alongside or prior to submitting the order referred to in paragraph 1 of this Section, the resident shall submit to the bank the document underlying the payment, in accordance with regulations. If the resident submits a payment order to the bank prior to providing the document referred to in paragraph 2 of this Section, it shall be deemed that the resident has given consent for the payment on the date the bank received the document. If the payment is executed through a direct debit of the resident’s account with the bank, the resident shall provide the bank, along with the consent for the direct debit of the account, with the document referred to in paragraph 2 of this Section. In the case of the payment referred to in paragraph 4 of this Section, if the resident fails to provide the bank with the document referred to in paragraph 2 of this Section, it shall be deemed that the resident has not given consent for the direct debit of the account referred to in that paragraph. The resident shall retain the document referred to in paragraphs 2 to 5 of this Section for its own purposes and for the purposes of the competent inspection bodies, while the bank shall keep a copy of the document.

Notwithstanding paragraphs 2 to 5 of this Section, the bank and the resident may agree in writing that the resident is not obliged to submit to the

4 bank, for the purpose of executing the payment under this Section, the document underlying the payment, proving the obligation of payment and determining the payment grounds, provided the obligation to submit this document is not envisaged by other regulation. The resident who concluded with the bank the agreement in accordance with paragraph 7 of this Section shall keep the document underlying foreign payment, proving the obligation of payment and determining payment grounds for ten years following the execution of payment – in its original form or form suitable for evidence review, as well as present that document at the request of the bank or inspection bodies in charge of foreign exchange operations. The bank and the resident shall keep the foreign payment order and the consent referred to in paragraph 4 of this Section for ten years following foreign payment execution – in its original form or form suitable for evidence review. Based on the order received in accordance with the provisions of this
Section, the bank shall effect foreign payments within the timeframe agreed
with the resident, and/or the timeframe determined by the rules referred to in
Section 3, paragraph 3 of this Decision.
9. The bank shall accept or return the submitted order referred to in
Section 8 of this Decision to the resident – unless it is the payment order
referred to in Section 3, paragraph 3 of this Decision – no later than on the first business day following the date of its receipt and, unless agreed otherwise, return the funds provided as cover within the same timeframe.
10. Payments, collection of payments and transfers requested and/or
ordered by non-residents under current and capital transactions shall also be effected as specified hereunder.
11. The provisions hereof shall apply to payments, collection of payments
and transfers executed by the National Bank of Serbia under current and capital transactions for the needs of residents referred to in Article 2, item 1, provisions 6 and 7 of the Law on Foreign Exchange Operations, as well as to those executed by the NBS for its own account. 11a. The provisions hereof shall also apply to payments, collection of payments and transfers under current and capital transactions in foreign exchange performed by banks through their foreign currency reserve requirement accounts with the National Bank of Serbia in line with regulations on interbank clearing.

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11b. The provisions hereof shall also apply to collections and payments in foreign cash in line with the regulation on payment, collection of payments, pay-in and payout transactions that may be performed in foreign cash.
12. The bank shall provide accurate data on payments, collection of
payments and transfers effected within the meaning hereof for statistical purposes in line with the guidelines referred to in Section 15 thereof.
13. The provisions hereof shall apply to payments and collection of
payments in non-convertible currencies executed via liquidation accounts of the National Bank of Yugoslavia abroad up to the balances thereon.
14. Banks shall use modern telecommunications systems, including
SWIFT, and apply international banking rules and standards to payment transaction instruments used in execution of payments, collection of payments and transfers under the terms hereof.
15. The Governor shall issue guidelines for the implementation hereof.
16. This Decision shall supersede the Decision on the Terms and
Conditions of Payment, Collection of Payments and Transfers under Current and Capital Transactions in Foreign Exchange and Dinars (FRY Official Gazette, No 25/2002).
17. This Decision shall enter into force on the date following its publication
in the RS Official Gazette.
D. No 32 Governor
26 February 2007 National Bank of Serbia Belgrade Radovan Jelašić, sign.