LAWON FOREIGN EXCHANGE TRANSACTIONS("Official Gazette of the Federal Republic of Yugoslavia", No.23/2002 and 34/2002 – correction and "Official Herald of the Republic of Serbia", No.101/2005 – other law) |
Article 1
The present Law shall govern the following:
1) Payments and collection of payments by using means of payment in the transactions among residents and nonresidents as well as transfer of such means;
2) Payments and collection of payments by using foreign means of payment in operations among residents;
3) Purchase and sale of means of payment among residents and nonresidents and purchase and sale of foreign means of payment among residents;
4) Unilateral transfers of means of payment from and into the country that are not effected from operations among residents and nonresidents;
5) Current and deposit accounts of residents abroad and residents and nonresidents in the country other than Dinar current and deposit accounts of residents in the country.
Payment, collection, transfer, purchase and sale referred to in paragraph 1 of the present Article shall be performed in conformity with this Law, good business practice and business ethics.
Payment, collection, transfer, purchase and sale referred to in paragraph 1of the present Article shall be subject to foreign exchange control authority whose officers shall be authorized to request all documentary evidence relating to such payments, collection of payments, transfers, purchases and sales as well as other documents necessary for effecting the foreign exchange control.
The National Bank of Yugoslavia shall be authorized to enact regulations for the purpose of enforcing of the provisions of this Law.
Article 2
In terms of the present Law certain concepts shall have the following meanings:
(1) Residents
Residents are:
1) Legal entities registered in the country (hereinafter: legal entities), with the exception of representative offices of such entities located outside the country;
2) Branches - affiliates of foreign legal entities entered into the register with an authorized agency in the country;
3) Entrepreneurs - natural persons who autonomously pursue activities aimed at making profit and are registered with an authorized agency (hereinafter: entrepreneurs);
4) Natural persons residing in the country, except for natural persons with temporary residence abroad for over one year;
5) Natural persons - foreign citizens residing in the country on the ground of residence permit, and/or work permit visa for over one year;
6) State agencies and organizations, diplomatic representation offices abroad, and persons employed in these representation offices as well as their family members.
(2) Nonresidents
Nonresidents are all persons not listed under the term of resident.
(3) Authorized Bank and Bank
An authorized bank shall be a legal entity established and doing business pursuant to the Law on Banks and Other Financial Organizations, and possessing an authorization issued by the National Bank of Yugoslavia to carry out foreign transactions.
A bank shall be a legal entity established and doing business in conformity with the Law on Banks and Other Financial Organizations, not possessing an authorization of the National Bank of Yugoslavia to carry out foreign transactions.
(4) Means of Payment
Means of payment shall be Dinar, domestic securities, and foreign means of payment.
Domestic securities shall be the securities issued by a resident.
Domestic securities denominated in foreign currency shall mean shares, bonds, bank bills, commercial papers, government bills, and certificates of deposits as well as financial derivatives traded at the stock exchange in conformity with the Law on Securities;
Foreign means of payment shall mean foreign exchange, foreign cash money, and foreign securities, of which:
1) Foreign exchange shall mean foreign claims denominated in foreign currency;
2) Foreign cash shall mean claims in cash money, and/or banknotes or coins denominated in foreign currency;
3) Foreign securities shall mean securities issued by a nonresident, denominated in foreign currency.
(5) Payment instruments
Payment instruments shall be understood to mean: letters of credits, remittances, payment cards, bills of exchange, checks and other banking and financial documents that are collectible in foreign currency.
(6) Foreign Exchange Market
Foreign exchange market shall be understood to mean a market at which foreign exchange and foreign cash money are purchased and sold.
(7) Exchange Transactions
Exchange transactions shall be understood to mean transactions of purchase from natural persons and transactions of sale to such persons, of foreign cash money and checks denominated and apt to be converted into foreign currency;
(8) Current Transactions
Current transactions shall mean the transactions concluded between residents and nonresidents the purpose of which is not a transfer of capital.
Payments and transfers with respect to current transactions shall be without limits, and shall include:
1) Payments on the ground of foreign trade transactions as well as other current transactions with foreign partners, including services;
2) Payments on the ground of interest on loans and net earnings from other investments;
3) Payments of a portion of loan principal, withdrawal of direct investments and transfer of earnings from direct investments;
4) Payments and transfers on the ground of coverage of moderate family subsistence expenses.
(9) Capital Transactions
Capital transactions shall be understood to mean the transactions between residents and nonresidents that are not foreign current transactions.
The capital transactions referred to in paragraph 1 of the present Article shall also include:
- direct investments;
- investment in real estate;
- long-term securities transactions in capital market;
- short-dated securities transactions in money market;
- investment funds transactions;
- credit transactions;
- sureties and guarantees;
- life insurance transactions;
- unilateral transfers of payment means (personal and physical).
(10) Direct Investments
Direct investments shall be understood to mean any investment of a resident abroad and of a nonresident in the country effected by an investor with the intent to establish continuing economic relations, and effecting significant control over legal entity management in conformity with the Law on Foreign Trade Transactions and the Law on Foreign Investment.
Establishment of continuing economic relations and significant control over legal entity management shall be understood to mean:
1) incorporation of a legal entity or an increase of its fixed assets fully owned by the investor, incorporation of a legal entity branch (affiliation) or buying-up of the existing legal entity fully owned by the investor and investment for the purpose of performing entrepreneur's activities;
2) investment into a new or an existing legal entity where the investor acquires 10 or more percent share in the fixed assets, and/or more than 10 percent of votes after having met the conditions specified in paragraph 1 of the present sub-paragraph;
3) credits for the purpose of establishing continuing economic relations, with a five year or longer term, where these have a feature of a subordinate claim (subordinate credits).
(11) Security Transactions
Security transactions shall be understood to mean transactions in capital and money markets, as well as the transactions with investment funds other than direct investments dealings.
In terms of the present Law, securities traded in the capital market shall be understood to mean shares, bonds and other debt securities that are issued in series with the maturity exceeding one year.
In terms of the present Law, securities traded in the money market shall be understood to mean securities issued in series with the maturity not exceeding one year, such as bank bills, commercial papers, certificates of deposits and banker's acceptances.
(12) Credit Transactions
Credit transactions shall be understood to mean legal transactions entered into in conformity with the present Law and the Law on Foreign Credit Transactions between:
- residents, by which a resident grants loans and/or borrows in the country,
- residents and nonresidents, by which a resident borrows from nonresidents abroad in order to pursue his/her activity;
- between nonresidents and residents, by which a resident engaged in a registered activity grants loans to a nonresident.
Sureties and guarantees are regulated by the Law on Foreign Credit Transactions, except for the sureties covering good performance of a transaction.
(13) Transactions on the Ground of Life Insurance
Life insurance transactions shall include payments of premiums and insured amounts on the ground of a contract between an insurance company - nonresident and a resident as a beneficiary, as well as between an insurance company - resident and a nonresident as a beneficiary in conformity with the Law on Property and Life Insurance.
(14) Unilateral Transfers of Means of Payment
Unilateral transfers of means of payment shall be understood to mean transfers from the country abroad or from abroad to the country, that do not arise from carrying out of a transaction, between a resident - natural person and a nonresident - natural person, and which may be personal or physical.
Personal transfers of means of payment from and into the country shall include gifts and aid, inheritance, rent, debt settlement of immigrants in the country of origin and transfer of means owned by emigrants abroad.
Physical transfers of means of payment shall include any transfer of cash in Dinars as well as the transfer of foreign cash money and foreign securities from and into the country.
Payment and Collection in Means of Payments
Article 3
Residents and nonresidents shall use foreign exchange for making payment to foreign partners unless otherwise specified by the present Law.
Article 4
Payment, collection, transfer and disbursement in the country among residents, between residents and nonresidents and among nonresidents shall be effected in Dinars.
By exception from paragraph 1 of the present Article, payment, collection and transfer specified in that paragraph may be effected in foreign exchange as well, under the following grounds:
1) sale and renting of flats, business premises and other immovable property;
2) Debt-servicing of foreign currency loans in the country;
3) Collection of insurance premiums from nonresidents
4) Collection of premiums and transfers based on life insurance contract, as well as transfers of damages on the ground of compulsory liability insurance of owners of motor vehicle with foreign license plates.
5) purchase and sale of domestic securities denominated in foreign currency;
6) payments into the Guarantee Fund of a member of the Central Register, deposit and clearing of securities.
Payment, collection and disbursement specified in the present Article can be effected in cash in foreign currency as well, under the following grounds:
1) disbursement of foreign cash from a foreign currency savings book and foreign currency account;
2) sale and purchase of consignment goods and in duty free shops.
Payment, Collection and Transfer on the Ground of Current and Capital Transactions
Article 5
Payments, collection and transfer on the ground of current and capital transactions between residents and nonresidents, permitted by the present Law, shall be effected through an authorized bank.
The National Bank of Yugoslavia shall effect payment, collection and transfer for residents - state authorities and organizations.
The authorized bank and the National Bank of Yugoslavia shall not effect a remittance order and/or a transfer abroad if such payment and/or transfer are not permitted by the present Law.
Payment cards shall not be used for payment on the ground of capital transactions.
The National bank of Yugoslavia shall spell out conditions and terms of payment, collection and transfer on the ground of current and capital transactions in foreign exchange and in Dinars.
Payment, Collection and Transfer on the Ground of Current Transactions
Article 6
Payment, collection and transfer on the ground of current transactions between residents and nonresidents shall be free, in accordance with the present Law.
Article 7
Every resident who has earned foreign currency abroad as well as every resident who has transferred foreign currency abroad but has not made use of it abroad, shall be obliged to repatriate such foreign currency in conformity with the present Law.
Article 8
A resident - legal entity and an entrepreneur shall be obliged to repatriate the profit accrued from pursuing economic activity and unused as prescribed by the Law on Foreign Trade Transactions, within eight workdays following the date of making the statement regarding such profit.
Article 9
A resident - legal entity and entrepreneur shall be obliged to collect payment for export of goods and services abroad within the time limit stipulated in the contract, and not later than within eight workdays after the expiry of that time limit.
A resident - legal entity shall be obliged to repatriate the accrued profit from investment works abroad and the amount of foreign currency that the client ordering the investment project had withheld as warranty for the proper performance of work, within eight workdays after the completion of the investment works and/or the date of expiration of the guarantee period.
The transaction of export of goods and services abroad for which the stipulated date for collection of payment falls within 90 days after the date of customs clearance of goods in export was carried out and/or after the date of providing the service abroad, shall be understood to be a credit transaction that has to be registered with the National Bank of Yugoslavia.
Article 10
A resident - legal entity and an entrepreneur shall import the goods and services paid for in advance from abroad within the time limit stipulated in the contract.
The resident specified in paragraph 1of the present Article failing to import the goods and services from abroad paid in advance, shall be obliged to repatriate the paid amount of foreign currency within eight workdays following the date of expiration of the time limit stipulated in the contract.
The transaction of import of goods and services for which the stipulated date for import exceeds 90 days following the date of carrying out the payment order, shall be understood to be a credit transaction that has to be registered with the National Bank of Yugoslavia.
Payment, Collection and Transfer on the Ground of Capital Transactions
Article 11
Payments, collections and transfers with respect to capital transactions between residents and nonresidents shall be free unless otherwise specified in the present Law.
Article 12
Residents may freely effect payment and transfer of capital on the ground of acquiring, sale and liquidation of direct investments abroad only if such a transaction is registered and carried out in conformity with the Law on Foreign Trade Transactions.
Nonresidents freely effect payment and transfer of capital on the ground of acquiring, sale and liquidation of direct investments in the country only if such a transaction is registered and carried out in conformity with the Law on Foreign Investments.
Article 13
A resident shall not effect payment and transfer of capital on the ground of acquiring real estate ownership abroad, unless otherwise specified by law or international treaty.
The provision specified in paragraph 1 of the present Article shall not apply to residents - state authorities and organizations, diplomatic representation offices abroad and persons employed in such representation offices and their family members.
A nonresident shall not effect payment for the purpose of acquiring real estate in the country unless otherwise specified by law or international treaty.
The ban specified in paragraph 3 of the present Article shall not apply to a nonresident - natural person temporarily residing abroad for over one year.
Article 14
Residents shall not effect payment for the purpose of purchasing foreign securities in foreign and domestic capital markets unless otherwise specified in the Law on Securities, the Foreign Trade Transactions Law or in an international treaty.
Nonresidents may effect payment for the purpose of purchasing domestic securities only under the conditions specified in the Law on Securities, the Law on Settling the Obligations on the Ground of Foreign Currency Savings of Citizens, the Foreign Investment Law or an international treaty.
Article 15
Residents shall not effect payments for the purpose of purchasing foreign short-term securities in international and domestic money markets, with the exception of authorized banks, under the conditions to be prescribed by the National Bank of Yugoslavia.
Nonresidents shall not effect payment for the purpose of purchasing domestic short-term securities.
Article 16
Residents shall not effect payment for the purpose of investing in foreign investment funds.
Article 17
Payment and collection on the ground of credit transactions shall be free only if covered by a contract in conformity with the present Law and the Law on Foreign Credit Transactions.
Granting of credits in Dinars between a resident and a nonresident shall not be allowed.
Article 18
A resident - natural person shall not pay life insurance premiums to a nonresident - insurance company abroad.
Article 19
Physical transfer of means of payment shall be effected in conformity with the present Law.
The National Bank of Yugoslavia shall spell out the terms and mode of personal and physical transfers of means of payment.
Foreign Currency Loans among Residents in the Country
Article 20
An authorized bank shall not extend credit in foreign currency to a resident except to a resident- legal entity and an entrepreneur for the payment of imported goods and services.
Article 21
Contracting in foreign currency in the country shall be allowed, providing that any payment and collection of payment has to be effected in Dinars.
Foreign Exchange and Dinar Accounts of Residents and Nonresidents in the Country and Abroad
Article 22
An authorized bank and/or a bank shall not keep foreign currency in the country with another resident, except with another authorized bank, the National Bank of Yugoslavia and an institution in charge of Central Register, clearing and balancing of securities.
An authorized bank shall not keep foreign currency in accounts held with nonresidents, except with foreign banks.
Article 23
A resident - legal entity and an entrepreneur may keep foreign currency in the foreign currency account with an authorized bank and/or a bank, or sell them to such bank.
By exception from paragraph 1 of the present Article, a resident - legal entity may hold foreign currency with the institution in charge of Central Register, clearing and balancing of securities.
A resident - legal entity and an entrepreneur shall not keep a foreign currency account with a bank abroad except in cases specified by the National Bank of Yugoslavia.
A resident - state authority and an organization shall not keep a foreign currency accounts with an authorized bank, and/or bank except with the National bank of Yugoslavia.
A resident - state authority and an organization that earns foreign currency and foreign cash within its activity, shall sell such foreign currency and/or such foreign currency cash to the National Bank of Yugoslavia.
A resident - natural person shall not hold open foreign currency accounts with a bank abroad, except for natural persons - foreign nationals, on the ground of a residence permit and/or work permit visa, residing in the country for over one year, and persons employed in diplomatic representation offices abroad and their family members.
Article 24
Foreign currency acquired in conformity with the present Law may be held by a nonresident in a foreign currency account with an authorized bank and/or bank, or may be sold to that bank.
A nonresident shall not hold Dinars in an account with an authorized bank and/or bank, that not earned through collection of payments on the ground of current transactions or capital transactions as permitted by the present Law.
A nonresident shall not purchase foreign exchange from an authorized bank and/or bank up to the amount exceeding the Dinar countervalue that the nonresident has realized in conformity with the present Law.
Transfer of Funds from a Nonresident's Account
Article 25
No transfer of funds shall be permitted from a foreign currency or dinar account with an authorized bank, and/or bank, of a non-resident that has not met all tax liabilities, paid customs duties or settled other obligations to the State deriving from such transaction.
III FOREIGN EXCHANGE MARKET AND THE DINAR EXCHANGE RATE
Article 26
Foreign currencies and foreign cash money may be purchased and sold in the foreign exchange market for uses permitted by the present Law.
By exception from paragraph 1 of the present Article, an authorized bank, and/or bank, in its name and for its account, may purchase and sell foreign currency and foreign cash money in the foreign exchange market for its business operations, and in compliance with the foreign exchange risk indicator as specified in the Law on Banks and Other Financial Organizations.
Article 27
Foreign currency and foreign cash money shall not be purchased and sold outside of the foreign exchange market.
Article 28
The foreign exchange market shall comprise purchases and sales of foreign currency in the country that are carried out in the following manner:
1) directly:
- between authorized banks and/or banks and residents as well as between authorized banks and/or banks and nonresidents;
- between authorized banks and/or banks;
- between authorized banks and banks;
- between authorized banks, banks, residents that possess authorization for exchange operations and the National Bank of Yugoslavia;
- between authorized banks and/or banks and residents possessing authorization for exchange operations;
2) at the sessions of interbanking foreign exchange market:
- between authorized banks as well as between such banks and the National Bank of Yugoslavia.
The foreign exchange market shall also comprise purchase and sale of foreign currency cash effected by an authorized bank and/or bank, the National Bank of Yugoslavia and other residents who perform exchange operations in accordance with the present Law.
Article 29
Authorized banks and/or banks shall purchase and sell foreign exchange and foreign currency cash in their own behalf and for their own account, in their own behalf and for account of residents and nonresidents, and in their own behalf and for the account of residents and nonresidents.
Article 30
Exchange operations may be carried out: by authorized banks, banks, the National Bank of Yugoslavia, and by residents - legal entities and entrepreneurs possessing an appropriate authorization of the National Bank of Yugoslavia.
The National Bank of Yugoslavia shall prescribe the conditions and mode of conducting exchange operations and the control procedures relating to exchange operations.
Article 31
The National Bank of Yugoslavia shall prescribe conditions and mode of foreign exchange market operation.
Article 32
The exchange rate of the Dinar to other foreign currencies in the foreign exchange market shall be determined freely in accordance with supply of and demand for foreign exchange.
Article 33
The official exchange rate of the Dinar shall be determined as stipulated in the regulations to be enacted by the National Bank of Yugoslavia.
The official average exchange rate shall apply in bookkeeping and statistics.
In calculating customs duties and other import duties the average official exchange rate shall apply as determined on the last business day in a week preceding the week in which the amount of customs duties and other import duties is established, in conformity with the law regulating the customs duties.
IV PHYSICAL TRANSFER OF MEANS OF PAYMENT
Article 34
Foreign cash, payment cards and checks denominated in foreign currency may be brought into the country freely.
Payment cards may be taken out of the country freely.
Taking Dinars Out and Bringing Them Into the Country
Article 35
The National Bank of Yugoslavia shall prescribe the amount of Dinars that may be taken out of the country and brought into the country by residents and nonresidents - natural persons, as well as conditions under which an authorized bank may take Dinars out of the country.
Taking Out and Bringing In of Foreign Cash, Checks and Securities
Article 36
The National Bank of Yugoslavia shall prescribe the amount of foreign cash and checks that a resident - natural person may take abroad, the conditions and the mode of taking out securities, as well as the conditions under which an authorized bank may take out of the country foreign cash and securities.
The National Bank of Yugoslavia shall prescribe the conditions under which a nonresident - natural person may take abroad foreign cash and securities, that are acquired in compliance with the law, and /or bring into the country foreign cash and securities.
Prevention of Money Laundering
Article 37
When crossing the state border, residents and nonresidents shall be obliged to declare to the customs authorities any bringing into and taking out of foreign cash, Dinars and securities in the amount exceeding the amounts specified by the law regulating the prevention of money laundering.
Article 38
The National Bank of Yugoslavia and/or a competent State agency shall set down for residents and nonresidents the obligation to report on payment, collection of payment, transfer, purchase and sale, as specified in Article 1 of the present Law, as well as the conditions and mode of such reporting.
Residents and nonresidents under the obligation to report shall without delay produce business books for inspection to the National Bank of Yugoslavia and the competent State authority, as well as make available to them or submit other necessary documents.
Residents and nonresidents referred to in paragraph 2 of the present Article shall keep business documents for not less than five years.
Article 39
The National Bank of Yugoslavia shall make a projection of the balance of payments of the country on the ground of data contained in the reports referred to in Article 38 - as an analytical basis for determining monetary policy objectives and tasks, and shall monitor the realization of that projection.
Article 40
Control of foreign exchange operations, as regulated by the present Law and regulations passed on the ground of that Law, shall be exercised by the agencies of control - National Bank of Yugoslavia, the Federal Foreign Exchange Inspectorate and/or competent agencies of the member republics and the customs authorities.
Article 41
The National Bank of Yugoslavia shall exercise control of the foreign exchange operations of authorized banks, banks and other financial organizations, money changers as well as of residents and nonresidents connected by property, management and business relations with the authorized bank, the bank, and other financial organization and/or money changer respectively.
Article 42
The customs authorities shall exercise control of taking out of the country and bringing into the country foreign exchange, Dinars, checks, securities and gold in the passenger, commodity and postal traffic.
Article 43
Customs authorities, against a receipt, may temporarily seize from residents and nonresidents at border crossings an amount of Dinars, foreign cash, checks and securities denominated in foreign currency that exceeds the amount prescribed by the National Bank of Yugoslavia.
Article 44
The Federal Foreign Exchange Inspectorate shall exercise control over the foreign exchange operations of residents and nonresidents.
The Federal Foreign Exchange Inspectorate shall exercise the control over the foreign exchange operations of persons specified in Article 41 of the present Law if such persons are connected with the persons referred to in paragraph 1 of the present Article, by property, management and business relations respectively.
The competent state agency shall prescribe the mode of exercising control over the foreign exchange operations referred to in paragraph 1 of the present Article.
Article 45
The Federal Foreign Exchange Inspectorate shall conduct infraction proceedings and decide in the first instance in the matter of infractions specified in the present Law and other regulations.
An appeal may be lodged against a decision referred to in paragraph 1 of the present Article with the agency in charge of infractions.
The infraction proceedings spelled out in the present Law shall be conducted in conformity with the Law on Infractions violating the federal regulations.
Article 46
Controlling agencies shall be under a duty to deposit foreign cash, checks, securities and dinars, temporarily seized due to well founded suspicion of a criminal act or infraction into the special-purpose account of the Federal Foreign Exchange Inspectorate held with the National Bank of Yugoslavia, or they shall deposit them in the National Bank of Yugoslavia within two business days following the date of their seizure.
Article 47
Controlling agencies shall be obliged to collaborate in the exercise of foreign exchange control and to make available data, findings and information in their possession, should these be necessary for exercising foreign exchange control and, if need be, to engage in the process other competent agencies.
Article 48
If the objectives of economic and monetary policies are not being achieved, the National Bank of Yugoslavia may take the following protective measures:
1) limit payment for current and capital transactions;
2) limit or prohibit taking abroad and bringing in from abroad of dinars, foreign cash and securities denominated in foreign currency;
3) set forth conditions under which a resident and a nonresident may hold foreign currency with an authorized bank and/or bank;
4) introduce an duty of keeping a non-interest-bearing foreign exchange deposit with the National Bank of Yugoslavia;
5) introduce compulsory sale of foreign currency from foreign exchange accounts;
6) limit or prohibit a purchases and sale of specific foreign currencies and foreign cash on the foreign exchange market;
7) limit or prohibit forward transactions in purchasing or selling foreign currency;
8) other measures.
The measures referred to in paragraph 1 of the present Article may be applied while the underlying disturbances last, but no longer than six months following the date of their introduction.
Article 49
Whoever effects payment on the ground of capital transactions contrary to regulations of the National bank of Yugoslavia shall be punished for a criminal offence by imprisonment of from six months to five years.
Article 50
Whoever buys from natural persons and sells to such persons foreign cash and checks denominated and cashable in foreign currency without authorization by the National Bank of Yugoslavia shall be punished for a criminal act by imprisonment of from six months to five years.
Article 51*
A resident - legal entity, state agency and organization, authorized bank and/or bank and a nonresident - legal entity shall be punished for infraction by a fine of from 10,000 to 1.000,000 Dinars for the following acts:
1) using foreign currency contrary to the provisions of the present Law (Article 3);
2) effecting payment, collection, transfer and disbursement in the country contrary to the provisions of Article 4 of the present Law (Article 4);
3) failing to effect payment, collection and transfer with respect to current and capital transactions through an authorized bank (Article 5, paragraph 1);
4) effecting a payment order and/or a transfer abroad while such payment and/or transfer are not allowed by the present Law (Article 5, paragraph 3);
5) effecting payment on the ground of capital transactions with payment cards (Article 5, paragraph 4);
6) effecting payment, collection and transfer of foreign currency and dinars on the ground of current and capital transactions contrary to regulations of the National Bank of Yugoslavia (Article 5, paragraph 5);
7) failing to repatriate foreign currency earned abroad and foreign currency taken abroad but not used in conformity with the present Law (Article 7);
8) failing, contrary to Article 8 of the present Law, to repatriate the profit accrued from economic activities abroad within eight workdays following the date of profit statement (Article 8);
9) failing to collect payment within the time limit stipulated in the contract for exported goods and a service provided abroad, within eight workdays after the expiry of such time limit (Article 9, paragraph 1);
10) failing to repatriate the accrued profit on the ground of investment works abroad as well as the amount of foreign currency that the client ordering the investment works had withheld, pursuant to guarantee periods as warranty for the proper performance of work, within eight work days after the completion of investment works and/or the date of expiration of the guarantee period. (Article 9, paragraph 2);
11) failing to register with the National Bank of Yugoslavia an export transaction of goods and services abroad with a contracted date for collection of payment exceeding 90 days (Article 9, paragraph 3);
12) failing to import the goods and services paid in advance within the time limit stipulated in the contract (Article 10, paragraph 1);
13) failing to register with the National bank of Yugoslavia, as a credit transaction, the import of goods and services with the 90-day and longer contracted period of import following the date of effecting the payment order (Article 10, paragraph 3);
14) effecting payment and transfer of capital on the ground of acquiring, selling and liquidating direct investments abroad contrary to the provisions of Article 12, paragraph 1 of the present Law (Article 12, paragraph 1);
15) effecting payment and transfer of capital on the ground of acquiring, selling and liquidating direct investments in the country contrary to the provisions of Article 12, paragraph 2 of the present Law (Article 12, paragraph 2);
16) effecting payment and transfer for the purpose of acquiring title to real estate ownership abroad contrary to the provisions of Article 13, paragraph 1 of the present Law (Article 13 paragraph 1);
17) effecting payment for the purpose of acquiring title to real estate in the country contrary to the provisions of Article 13, paragraph 3 of the present Law (Article 13, paragraph 3);
18) effecting payment for the purpose of purchasing securities in foreign and national capital markets contrary to the provisions of Article 14, paragraph 1 of the present Law (Article 14, paragraph 1);
19) effecting payment for the purpose of purchasing domestic securities contrary to the provisions of Article 14, paragraph 1 of the present Law (Article 14, paragraph 2);
20) effecting payment for the purpose of purchasing foreign short-term securities in foreign and capital money market contrary to the provisions of Article 15, paragraph 1 of the present Law and conditions to be set forth by the National Bank of Yugoslavia (Article 15, paragraph 1);
21) effecting payment for the purpose of purchasing domestic short-term securities (Article 15, paragraph 2);
22) effecting payment for the purpose of investing into foreign investment funds (Article 16);
23) effecting payment and collecting payment with respect to credit transactions contrary to the provision of Article 17, paragraph 1 of the present Law (Article 17, paragraph 1);
24) granting Dinar credits contrary to the provisions of Article 17, paragraph 2 of the present Law (Article 17, paragraph 2);
25) granting a foreign exchange credit contrary to the provisions of Article 20 of the present Law (Article 20);
26) failing to keep foreign exchange in the country with another authorized bank, the institution in charge of Central Register, clearing and balancing of securities, or with the National Bank of Yugoslavia (Article 22, paragraph 1);
27) failing to hold foreign currency abroad with foreign banks (Article 22, paragraph 2);
28) failing to hold foreign currency in the country in the foreign exchange account with an authorized bank and/or bank (Article 23, paragraph 1);
29) holding foreign currency accounts with an authorized bank and /or bank contrary to the regulations of the National Bank of Yugoslavia (Article 23, paragraph 3);
30) holding foreign exchange accounts with an authorized bank and bank contrary to the provisions of Article 23, paragraph 4 of the present Law (Article 23, paragraph 4);
31) failing to sell to the National Bank of Yugoslavia foreign exchange and/or foreign cash earned through its business operations (Article 23, paragraph 5);
32) failing to keep foreign currency earned in conformity with the present Law with an authorized bank and/or bank (Article 24, paragraph 1);
33) holding dinars in an account with an authorized bank and/or bank, not realized through collection of payments with respect to current transactions or capital transactions permitted by the present Law (Article 24, paragraph 2);
34) purchasing foreign exchange from an authorized bank and/or bank up to the amount exceeding the Dinar counter value realized in conformity with the present Law (Article 24, paragraph 3);
35) transferring funds from a foreign currency and a Dinar account with an authorized bank and/or bank, while failing to meet all tax, duty, and other obligations towards the State with respect to such transaction (Article 25);
36) purchasing and selling foreign currency outside the foreign currency market (Article 27);
37) performing exchange operations contrary to regulations of the National Bank of Yugoslavia (Article 30, paragraph 2);
38) failing to apply the exchange rate specified in Article 33 of the present Law for bookkeeping and statistical purposes and for computation of customs duty and other import dues referred to in Article 33 of the present Law (Article 33, paragraphs 2 and 3);
39) taking out Dinars from the country contrary to regulations of the National Bank of Yugoslavia (Article 35);
40) taking out foreign cash and securities from the country contrary to regulations of the National Bank of Yugoslavia (Article 36, paragraph 1);
41) attempting to transfer across the state border, without declaring to the customs officer, foreign cash, Dinars and securities in the amount exceeding the amounts set forth by the law regulating the prevention of money laundering (Article 37);
42) failing to comply with the prescribed obligatory reporting (Article 38, paragraph 1);
43) failing to make available business books for inspection by the National Bank of Yugoslavia and the competent state agency, or to submit other necessary documentation. (Article 38, paragraph 2);
44) failing to keep safe business documents for at least five years (Article 38, paragraph 3);
45) failing to deposit foreign cash, checks, securities and Dinars, into the special-purpose account of the Federal Foreign Exchange Inspectorate, or deposit them in the National Bank of Yugoslavia within two business days following the date the money has been temporarily seized (Article 46);
46) acting contrary to measures specified in Article 48 of the present Law (Article 48);
For the acts referred to in paragraph 1 of the present Article the responsible person, too, in the resident - legal entity or nonresident, as well as the responsible person in the authorized bank and/or bank, shall be punished for infraction by a fine of from 500 to 50,000 Dinars.
For the acts specified in paragraph 1 of the present Article, the responsible person, too, in the state agency and organization shall be punished for infraction by a fine of from 500 to 50,000 Dinars.
A resident - legal entity and an entrepreneur shall be punished for infraction by a fine in a double amount in Dinar equivalent to the amount of foreign currency, goods and services, if failing to repatriate the amount of foreign currency for goods and service paid in advance within eight workdays following the expiration of the time limit stipulated in the contract.
For the acts specified in paragraph 1 of the present Article a resident - natural person and a non-resident - natural person shall be punished for infraction by a fine of from 500 to 50,000 Dinars.
For the acts specified in paragraph 1 of the present Article, a resident - legal entity may be subject, besides being fined, also to the protective measure of prohibition to engage in the corresponding line of business for a period of from three months to one year.
Article 52*
A nonresident - entrepreneur shall be punished for infraction by a fine of from 5,000 to 500,000 Dinars for the acts specified in Art. 51 of the present Law.
For the acts referred to in paragraph 1 of Article 51 of the present Law, besides the fine, a protective measure of prohibition of engaging in an autonomous line of business, too, may be pronounced.
Article 53*
A resident - natural person performing the following acts shall be punished by a fine of from 500 to 50,000 Dinars:
1) paying life insurance premiums abroad to a nonresident - insurance company contrary to the provisions of Article 18 of the present Law (Article 18);
2) effecting physical and personal transfer of means of payment contrary to regulations of the National Bank of Yugoslavia (Article 19);
3) holding open foreign currency accounts with a bank abroad contrary to Article 23 of the present Law (Article 23, paragraph 6);
4) attempting to take out or taking out Dinars from the country or attempting to bring into or bringing Dinars in the country contrary to regulation of the National Bank of Yugoslavia (Article 35);
5) attempting to take out or taking out foreign cash, checks and securities contrary to regulations of the National Bank of Yugoslavia (Article 36, paragraph 1);
A nonresident - natural person, too, shall be punished for infraction by the fine referred to in paragraph 1 of the present Article for attempting to take out or taking out foreign cash and securities, or attempting to bring in or bringing in foreign cash and securities contrary to regulations of the National Bank of Yugoslavia (Article 36, paragraph 2);
Article 54
For infractions specified in articles 51 through 54 of the present Law, besides the fine, a protective measure shall be pronounced of seizing the objects used or intended to be used to commit the infraction, or that are materialised by the infraction.
The objects referred to in paragraph 1 of the present Article may be seized even if not being the property of the violator or if the violator does not dispose of them.
By exception from the provisions referred to in paragraph 1 of the present Article, the objects used or intended to be used to commit the infraction, or that are materialised by the infraction, may be seized partially if motives or other circumstances for committing the infraction indicate that seizure of the whole object is not justified.
For the infractions specified in Article 53 of the present Law a protective measure shall be pronounced of seizure of a transporting and/or hauling vehicle, if its secret and concealed space was used to hide the object of infraction and if the value of the object of infraction exceeds by one third the customs basis for the transporting and/or hauling vehicle.
The transporting and/or hauling vehicle providing public transport services can be seized pursuant to paragraph 4 of the present article even though not owned by the violator, if its owner knew or could have known that it was used to commit the infraction referred to in Article 53 of the present Law.
Article 55
Infraction proceedings under the present Law shall not be instituted if three years have elapsed after the date they were committed.
Article 56
The objects used in committing a criminal offence and an infraction specified in the present Law shall be deposited in the special-purpose account of the Federal Foreign Exchange Inspectorate and/or placed in the depot of the National Bank of Yugoslavia.
Foreign cash security deposited by the nonresident - natural person in criminal and infraction proceedings as well as in settling the dispute before a foreign trade arbitration tribunal shall be paid into the account specified in paragraph 1 of the present Article.
Article 57
Fines, property benefits and means of payment and Dinar equivalent obtained by sale of objects used or intended to be used in committing a criminal offence and an infraction or that became materialised by committing the criminal offence and the infraction, shall be paid into federal budget.
Foreign cash seized as an object of committing the criminal act, economic violation or infraction shall be sold to the National Bank of Yugoslavia, which shall pay the Dinar equivalent of such money into the federal budget.
Legal Consequences of Sentence
Article 58
A resident - natural person condemned by a finally binding sentence to imprisonment for a criminal offence against the constitutional order and security of the country, against the economy and the breach of line of duty, shall not be allowed to engage in foreign exchange and credit transactions with foreign partners.
Article 59
A resident - natural person condemned by a finally binding sentence for a criminal offence specified in the present Law, and for an infraction specified in the present Law, while being punished by a fine of over 10,000 Dinars, shall not be allowed to engage in jobs and tasks associated with foreign exchange operations.
The ban referred to in paragraph 1 of the present Article shall last for three years following the day of the sentence becoming final.
IX TRANSITIONAL AND CONCLUDING PROVISIONS
Time Limit for Enacting Bylaws
Article 60
The National Bank of Yugoslavia and the competent state agency shall enact regulations on the ground of the present Law not later than within 60 days following the date of its coming into force.
Article 61
Proceedings instituted prior to the date of entering into force of the present Law shall be finalized in compliance with the law applicable at the time the offence has been committed.
Article 62
The Law on Foreign Exchange Transactions ("Official Gazette of the FRY", Nos. 12/1995, 29/1997, 44/1999, 74/1999, and 73/2000) and the regulations enacted on the ground of that Law shall cease to be valid, except for the following:
1) Decree on conditions and mode of operation of the single foreign exchange market ("Official Gazette of the FRY", Nos. 74/2000, 19/2001, and 36/2001);
2) Decision on kinds of foreign currency bought and sold in the single foreign exchange market ("Official Gazette of the FRY", No. 72/2001);
3) Decision on kinds of foreign currency used in the intervention of the National Bank of Yugoslavia in the Inter-banking foreign exchange market ("Official Gazette of the FRY" , No. 72/2001);
4) Decision on the mode of executing payment operations with foreign partners ("Official Gazette of the FRY", Nos. 20/1995, 28/1997, 10/1999, and 57/2001);
5) Decision on conditions allowing holding of foreign exchange in an account abroad ("Official Gazette of the FRY", Nos. 28/1995, 7/1998, and 59/2001);
6) Decision on the mode of reporting on turnover and statement of accounts kept abroad, and of payment and collection of payment for services through a current account and other data, as well as on dates for submission of such reports ("Official Gazette of the FRY", No. 8/1996);
7) Decision on keeping files on foreign trade transaction contracts with foreign partners ("Official Gazette of the FRY", No. 74/2000);
8) Decision on conditions of granting authorizations to banks to perform transactions with foreign partners, as well as on conditions of forfeiting such authorizations ("Official Gazette of the FRY", Nos. 35/1995, 59/1996, 4/1997, 17/1998, and 21/2000);
9) Decision on conditions for performing money exchange operations ("Official Gazette of the FRY", Nos. 25/2000, 57/2000, 69/2000, 9/2001, 19/2001, 36/2001, 63/2001, and 7/2002);
10) Decision on the mode of keeping a foreign currency account and foreign currency savings book of a domestic and a foreign natural person ("Official Gazette of the FRY", Nos. 3/1996 and 57/2001);
11) Decision on sale of foreign currency to domestic natural persons ("Official Gazette of the FRY", No. 62/1995);
12) Decision on taking out and bringing in dinar cash in passenger traffic with abroad ("Official Gazette of the FRY", Nos. 23/1995 and 39/2001);
13) Decision on conditions of taking out or sending from Yugoslavia and bringing in Yugoslavia the money and securities in postal and other deliveries ("Official Gazette of the FRY", Nos. 23/1995, 41/1997, 38/1998, 58/2000, 34/2001, 39/2001, and 57/2001);
14) Decision on amounts and conditions of taking out foreign cash for payment abroad and conditions of bringing foreign cash into the country ("Official Gazette of the FRY", Nos. 3/1998, 20/1999 and 54/1999);
15) Decision on conditions and mode of performing foreign exchange documentary control ("Official Gazette of the FRY", No. 1/2001).
Article 63
The present Law shall come into force on the day following the day of its publication in the "Official Gazette of the FRY".
PUBLISHER’S NOTE
* Infraction fines defined by the present Law have been amended by the Law on Amendments of the Law Defining Fines for Business Offences and Infractions ("Official Herald of the Republic of Serbia", No.101/2005).