SERBIA Law and Practice Contributed by: Željka Motika, Ivana Bulatović and Jovana Spasojević Gligorijević, Motika i partneri
Social Media Content and Software Development Business use of social media is subject to general advertising and consumer protection rules, with addi - tional sector‑specific restrictions for communications related to regulated financial services. Software is protected under copyright law; however, for regulated financial entities, software development and imple - mentation must also meet additional ICT risk‑man - agement, security, and outsourcing requirements. 2.12 Review of Industry Participants by Parties Other Than Regulators As a matter of law, certain categories of regulated fin - tech entities are required to undergo mandatory exter - nal audits of their financial statements, which must be conducted by licensed audit firms. This requirement applies in particular to payment institutions, electronic money institutions, investment firms, and digital asset service providers. As part of these audits, auditors review both the financial statements and the internal controls related to financial reporting, and they are obligated to promptly notify the regulator of any fact that may constitute a serious breach of law. In addition to oversight by regulators and auditors, fintech activities may also fall under the supervision of other competent authorities, such as tax authorities and personal data protection authorities. Banks, international card schemes, and other financial partners also carry out thorough due‑diligence proce - dures before entering into business relationships with fintech companies. Furthermore, professional and industry associations contribute to the development of the sector by pro - moting best practices, standards, and recommenda - tions. 2.13 Conjunction of Unregulated and Regulated Products and Services The combination of regulated and unregulated prod - ucts and services within a single business model depends on the type of financial activity involved. The regulatory framework permits the existence of hybrid payment institutions and hybrid electronic money institutions, provided they comply with man -
datory accounting segregation of activities and safe - guarding requirements for client funds. Digital asset service providers may conduct only those additional activities that are directly related to the provision of digital asset services. Banks are subject to the principle of exclusivity of activities. Under this principle, they may offer only those services expressly prescribed by law, along with activities directly related to those services. Any other services must be provided solely through affiliated entities and require regulatory approval. 2.14 Impact of AML and Sanctions Rules Anti‑money laundering and counter‑terrorist financing (AML/CFT) legislation, as well as international sanc - tions regimes, have a significant impact on the fin - tech sector in Serbia. Entities that provide regulated financial services – including payment institutions, electronic money institutions, investment firms, and digital asset service providers – qualify as obliged entities under AML/CFT regulations. As such, they are required to apply customer due diligence and verifi - cation measures, conduct risk assessments, monitor transactions, and report suspicious activities. These entities must also assess technological risks and carry out a risk assessment prior to introducing any new technology or business practice. In addition, interna - tional sanctions regimes require screening of clients and transactions against relevant sanctions lists and impose restrictions on cross‑border business relation - ships. Unregulated entities are subject to general prohibi - tions on unlawful activities and may have ad hoc reporting obligations if suspicious behaviour is iden - tified. International sanctions regimes apply equally to unregulated entities, as all persons are required to assess their counterparties and ensure they do not engage with individuals or entities listed under appli - cable international sanctions or terrorism lists. 2.15 Financial Action Task Force (FATF) Standards Although Serbia is not a member of the European Union, its AML/CFT framework is aligned with the relevant EU directives, which themselves are based
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