On 20 April 2018, the amendments to the Law

on Foreign Exchange (the “Law”) were

adopted and will enter into force on 28 April 2018. Exceptionally, the

application of certain provisions related to the assuming of competencies over foreign

exchange control by the National Bank of Serbia is delayed until 1 January

2019.

The main reasons behind the amendments to

the Law are the harmonisation of the obligations that the Republic of Serbia undertook

under the Stabilisation and Association Agreement and an alignment with international

standards in the area of the prevention of money laundering and terrorism financing.

These amendments contribute to the further evolution of the digital and IT sector

in Serbia - in accordance with the activities that the Serbian Government

directed towards the development of this field.

The main amendments to the Law are the

following:

may freely invest has been expanded – residents may

now invest in long-term securities issued by the European Union and in legal

entities registered within EU territory. Banks remain free to invest in

long-term securities;

–residents and

banks may perform the sale and purchase of short-term securities of certain

issuers, while non-residents from the EU may sell and purchase short-term

securities in the Republic of Serbia in accordance with the law regulating the

capital market;

debt assignment, which is a correction stipulated for the purposes of harmonisation

with the general rules on obligations;

form has been enabled;

of up to one year, while branches may take a loan/credit from a non-resident founder from the EU under the same conditions;

non-resident is liberalised, as well as the granting of sureties and other security

instruments under credit transactions between non-residents – the National Bank of Serbia is expected to adopt a bylaw which

will prescribe the conditions and the manner under which these transactions

will be carried out, whereby the restrictions prescribed by this bylaw will be

exclusively for the purposes of preserving public interest and financial

stability. The same bylaw should further regulate the conditions under which a resident

legal entity will grant sureties and other security instruments under credit

transactions between residents and non-residents;

obtain a guarantee and surety from a non-resident has been extended – the resident legal entities now may

obtain guarantees and sureties from non-residents also for transactions concerning

the import of goods and services, as well as for investment works by non-residents

in Serbia;

payment transactions via payment institutions and public postal operators;

through electronic money issuers as well;

Serbia is permitted under certain conditions - (i) that the payment is made using a payment

card or electronic money through a local payment service provider, and (ii)

that these products are delivered exclusively through telecommunications,

digital or IT devices;

exchange control from the Tax Administration as of 1 January 2019 - The National Bank of Serbia will

assume the competencies of the Ministry of Finance, Tax Administration over the

issuance and revocation of authorisations and certificates for the conduction

of currency exchange operations and the supervision over currency exchange

operations and the foreign exchange operations of residents and non-residents.