The CBK Board approved the Regulation on Cash Operations

17/01/2024

The Central Bank Board, at the meeting held on 27 December 2023, approved the Regulation on Cash Operations, which will enter into force on 1 February 2024.

The purpose of this Regulation is to advance and define the regulatory standards for the professional performance of the tasks of financial institutions in the area of cash operations, including the control of the amount of money in circulation, the protection of the integrity of the financial system, the fight against counterfeit money, consumer protection, the fight against money laundering and terrorist financing activities, as well as addressing of other issues related to the scope of the CBK.

Subject to the scope of this Regulation are the Central Bank of the Republic of Kosovo, banks, branches of foreign banks and other financial institutions, licensed to carry out banking and/or financial activities in the Republic of Kosovo.

More specifically, the Regulation addresses, among others, the following issues:

  • Procedures for handling and withdrawing from circulation euro banknotes and coins and other currencies suspected of being counterfeit;
  • Criteria for exchange of damaged euro banknotes and coins;
  • Minimum standards for fitness checking and re-circulation of euro banknotes and coins;
  • Standards for the packaging of euro banknotes and coins for deposit in the Central Bank of the Republic of Kosovo;
  • Conditions for cash payment transactions;
  • Rules and obligations for the import and export of euro banknotes and coins and other currencies from and to the Republic of Kosovo; and
  • Procedures and obligations for providers of services of cash deposit or withdrawal through machines used by the client.

This Regulation defines, among other things, that:

  • Banking and non-banking financial institutions are obliged to stop the re-circulation of the existing 500 euro banknote. This does not stop circulation between the parties as a legal means of payment, but the same is not returned to circulation by financial institutions when received from clients;
  • The import and export of euro banknotes and coins and other currencies in the Republic of Kosovo can only be done for and by banking and non-banking financial institutions licensed by the Central Bank of the Republic of Kosovo for the exercise of financial banking activities; and
  • In order to prevent the entry of counterfeit money, natural persons and legal entities that do not carry out financial activities are obliged to declare coins if they carry more than 100 pieces/unit, regardless of the monetary value.

This Regulation also specifies that no natural or legal person can:

  • Provide cash deposit or withdrawal services through any location with physical service or through any device or machine used by the client, in the name of providing financial services without possession of the license and authorization from the Central Bank of the Republic of Kosovo. Non-banking financial institutions must apply to be equipped with a license and authorization from the Central Bank of the Republic of Kosovo for the provision of this service, within 30 days from the entry into force of this Regulation; and
  • Import and be equipped with technical-electronic machines for cash withdrawal and deposit services if it is not licensed as a financial institution for providing banking activities, or a non-banking financial institution with licensed services for electronic money and payment services.

The Central Bank of the Republic of Kosovo remains committed to advancing the legal and supervisory framework in implementation of its constitutional mandate and in accordance with its strategic objectives.

The full Regulation https://bqk-kos.org/wp-content/uploads/2024/01/Rregullore-per-operacionet-me-para-2023.pdf