Governor Ismaili met with the Ambassador of the EU Office in Kosovo, Tomáš Szunyog

23/01/2024

The Governor of the Central Bank of the Republic of Kosovo, Ahmet Ismaili and the Deputy Governor Dardan Fusha hosted the Ambassador of the EU Office in Kosovo, His Excellency Mr. Szunyog, who was accompanied by Mrs. Annacarin Platon. During this meeting, they were briefed on the principal developments within the financial system, the advancement of the legal and regulatory framework as well as the activities pertaining to the stability and integrity of the financial system, the implementation of the objectives and the new CBK Strategic Plan 2024-2028.

The primary elements addressed by the new Regulation on Cash Operations and its effects were clarified with particular emphasis. The main topics of this informative meeting included advancing the regulatory framework for due diligence and combating counterfeit money and preventing its entry into the financial system, identifying and withdrawing suspicious currencies from circulation, and changes regarding the regulated and transparent supply of cash to the economy through licensed financial institutions, both in cash and through electronic machines for depositing and withdrawing money.

The CBK representatives provided clarification that, similar to other legislative modifications, this Regulation aims to incorporate the European Union's best practices concerning the preservation of the Euro currency's integrity and the financial system, combating counterfeit currency, money laundering, terrorism financing, and informality, and enhancing citizen protection and education regarding these perilous and unlawful occurrences.

Since the Regulation applies to financial institutions and defines the legal and technical requirements for cash operations, it does not address or limit voluntary transactions between individuals or parties who are not subject to the CBK regulation.

Additionally, it was specified that the aforementioned regulation does not impose restrictions on the acceptance of funds in licensed Euro-denominated bank accounts or prohibit the exchange of any currency by banking or non-banking financial institutions licensed by the CBK. Also, it was discussed about the existing opportunities and access to finance through financial exchange channels licensed for operation in the entire territory of the Republic of Kosovo.

Consistent with these changes, the need for a more effective and targeted communication regarding the possible effects and limitations of this Regulation, as well as the existing legal opportunities for access to safe financial services, were discussed. Regarding this, the CBK pledged to continue with suitable and effective information and awareness activities for the public.