The National Bank of Serbia has adopted a new decision introducing stricter and more detailed control mechanisms in the area of foreign exchange operations, with the aim of improving financial discipline and preventing abuses in international monetary flows. The decision applies as of May 17, 2025, and concerns both legal and natural persons – residents and non-residents alike.
The focus of the control is on all types of foreign currency transactions, the use of accounts abroad, electronic money, as well as digital assets. The regulation provides for two models of supervision:
- Indirect control requires entities to submit documentation (reports, contracts, confirmations, etc.) based on which foreign exchange flows are analyzed;
- Direct control is carried out by authorized officers entering the premises of the entity, with the right to inspect business records, computer systems, and documentation.
One of the more significant novelties is the possibility of temporary seizure of various forms of assets if there is a suspicion that they were acquired contrary to regulations – this may include foreign currency, checks, digital assets, payment cards, as well as data and information carriers. The NBS is authorized to block accounts, digital wallets, and in certain cases, to order the forced redemption or transfer of crypto-assets to an account under its control.
Supervision will not be conducted independently – cooperation is envisaged with the Tax Administration, customs authorities, the Ministry of Interior, and other institutions, with an emphasis on data exchange and joint actions in cases of suspicious transactions.
Supervised entities have a legal obligation to cooperate: enabling access to documentation, providing statements, technical access to databases, as well as delivering requested data within specified deadlines. Failure to fulfill these obligations is considered obstruction of control, which may lead to the imposition of fines, blocking of funds, or even forced collection.
Upon completion of the inspection, a report is prepared, and the entity has the right to submit comments and evidence within eight working days. If irregularities are found, the NBS issues a decision requiring their rectification within a specified period. If the order is not complied with, further penalties may follow, including a ban on the disposal of assets.
It is important to note that this decision repeals the previous regulation governing this area, while controls initiated before March 14, 2025, will be completed under the old rules.
As attorneys with a strong focus on providing legal support in the fields of banking, finance, and foreign exchange operations, we closely monitor regulatory changes that impact the business operations of our clients. The new decision of the National Bank of Serbia on enhanced supervision of foreign exchange transactions introduces additional challenges for business entities, especially regarding compliance obligations and documentation of international monetary flows.
The information contained in this document does not constitute legal advice on any specific matter and is provided solely for general informational purposes.
