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Foreign Exchange Rules in the Federation of Bosnia and Herzegovina Enter a New Era

The recent amendments to the Foreign Exchange Operations Law of the Federation of Bosnia and Herzegovina mark a significant step towards modernising the country's foreign exchange regime and aligning it with EU standards and international AML/CFT requirements.

The reforms reflect the evolution of today’s financial markets by introducing a legal framework that recognises electronic money, digital wallets and virtual currencies, while providing greater legal certainty for businesses and individuals engaged in cross-border transactions.

Among the key changes are:

  • Recognition of digital payment instruments and virtual currencies within the foreign exchange framework;
  • Expanded possibilities for foreign currency payments and collections, including employment-related payments abroad, investments and humanitarian donations;
  • Clearer rules on debt set-off between residents and non-residents, increasing transparency and reducing the risk of abuse;
  • A broader definition of cash and new declaration requirements for cross-border cash transfers exceeding EUR 10,000;
  • Introduction of regulatory oversight for virtual currency service providers and enhanced AML/CFT supervision;
  • Significantly increased penalties for breaches of foreign exchange regulations.

The amendments modernise legislation originally adopted in 2010, bringing it closer to contemporary financial practices while strengthening transparency, regulatory oversight and compliance with international standards, including FATF recommendations and MONEYVAL obligations.

Read our latest overview by Miloš Mitić to learn how these changes may affect businesses, financial institutions and investors operating in Bosnia and Herzegovina.

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JPM Law Office
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