At the last session, the Government of the Federation of Bosnia and Herzegovina, on the proposal of the Federal Ministry of Finance, established a package of six key laws and amendments to laws which implement a comprehensive and strategic reform of the financial and payment system of the Federation of Bosnia and Herzegovina. It is about one of the most significant institutional and economic reforms in the current mandate of the Government.
With this reform package, the Federation of Bosnia and Herzegovina establishes modern, safe legal framework in line with European standards for digital payments, strengthening the protection of users of financial services and long-term stability of the financial system. At the same time, the key preconditions for accession of Bosnia and Herzegovina to the Single Euro Payment Area (SEPA).
The reform package includes:
Law on Payment Services,
Law on electronic money,
Bills of Payment Act,
Amendments to the Law on the Protection of Users of Financial Services,
Amendments to the Law on Banks,
Amendments to the Law on Microcredit Companies.
Accession to the SEPA payment area brings faster and cheaper payments to citizensthe economy lower operating costsand the financial system stronger supervision and greater stability. These laws represent a key regulatory prerequisite for entry into the SEPA system and a strong incentive for overall economic development.
The Law on Payment Services is a central part of the reform because for the first time it systematically regulates modern payment transactions in the Federation of BiH, opens the market for innovations and new providers of payment services, with the introduction of high security standards and strong regulatory supervision.
In combination with the Law on Electronic Money and the Law on Payment Accounts, citizens and the economy are insured safer, faster and more affordable digital paymentsgreater transparency of fees and stronger legal certainty.
Amendments to the law on banks, microcredit companies and the protection of users of financial services are ensured full compliance of the financial system with the new rulesfurther strengthens supervision and improves the protection of users’ rights.
With this legislative package, the Government of the Federation of Bosnia and Herzegovina sends a clear message that The Federation is resolutely entering a new phase of modernization of the financial systemwith the aim of lower costs, greater security and financial services at the level of the European Union.
Laws are referred to the Parliament of the Federation of Bosnia and Herzegovina for consideration and adoption by emergency procedure.
