Key Highlights of the Draft Law on Electronic Money (e-Money) in Republika Srpska

On 20 July 2023, the National Assembly of Republika Srpska passed the Draft Law on Electronic Money (e-Money) (the “Draft Law" or the “Draft”). In the forthcoming period, it is expected that the Proposal Law on Electronic Money will be prepared and submitted in parliamentary proceeding.

The adoption of the Draft Law is a notable progression in the field of providing financial services on a local market. It introduces numerous novelties, such as: definition of e-money; the process of e-money issuance; issuers of e-money; conditions for establishment, conducting operations and termination of a company for issuance of e-money; supervision; as well as the protection of rights and interests of e-money holders.

As stated in the explanation, the Draft Law creates legal assumptions for the following:

• Introduction of new payment services in the form of e-money payments, which, in addition to banks, can also be provided by microcredit organizations, companies for issuing e-money having their headquarters or organizational unit in Republika Srpska, as well as the Ministry of Finance of Republika Srpska, and bodies of local self-government units in Republika Srpska.
• Increased competition within the payment services sector, thereby fostering enhanced efficiency and cost-effectiveness in providing these services.
• Development of e-money, with the objective of facilitating market expansion.
• Higher security for online payments of citizens, since e-money allows payment without using credit cards, thereby preventing the possibility of misuse of credit cards through data exposure.
• More efficient and economical operations of business entities, along with cheaper execution of payment transactions of citizens.
• Greater financial inclusivity.
• Prevention of the misuse of e-money payments for money laundering and terrorist financing purposes.

The Banking Agency of Republika Srpska will supervise operations related to e-money issuance.

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Muamer Hodžić
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Miroslav Džabić
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mdzabic@deloittece.com