Working with cash in Serbia: What is allowed and what is not, according to the Law on Prevention of Money Laundering?

Serbia's existing Law on Prevention of Money Laundering and Terrorist Financing incorporates international standards, including a significant restriction on cash transactions. According to the National Bank of Serbia (NBS), individuals and businesses engaged in selling goods, property, or providing services within Serbia are prohibited from accepting cash payments of 10,000 euros or more. This limit applies regardless of whether the transactions are single or multiple, or if they occur within a one-year period. Instead, such amounts must be deposited directly into a bank account.

This regulation extends to individuals receiving cash for loan agreements or property purchase contracts. The NBS clarified that depositing the specified amount into the recipient's bank account does not constitute receiving cash under the law's prohibition. This measure aims to enhance transparency and prevent illicit financial activities by ensuring that large cash sums are channeled through the banking system.

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In accordance with the provisions of Article 46, Paragraph 1 of the Law, a person engaged in the sale of goods and real estate or the provision of services in the Republic of Serbia shall not receive cash from a client or a third party for their payment in the amount of 10,000 euros or more in dinar equivalent, regardless of whether it is one or more mutually related cash transactions or one or more contracts within a period of one year; rather, the aforementioned monetary amount must be paid into an account opened with a bank.

Furthermore, the law imposes strict limitations on cash payments in foreign currency within Serbia. Such payments are generally forbidden, with exceptions only permitted in specific circumstances explicitly outlined in secondary legislation issued by the NBS. These exceptions might include transactions at international airports or the sale of fuel to foreign aircraft and vessels, but generally, cash transactions exceeding the threshold must be conducted through bank transfers.

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The aforementioned limitation in this context means that a person for a service they provide within their service activities must not receive cash in the amount of 10,000 euros or more in dinar equivalent, but rather the aforementioned monetary amount must be paid into the account of the person providing the service, opened with a bank.