SERBIA Law and Practice Contributed by: Željka Motika, Ivana Bulatović and Jovana Spasojević Gligorijević, Motika i partneri
ties are strictly regulated by the National Bank of Ser - bia to ensure the stability of the financial system. 4.4 Syndication of Fiat Currency Loans Syndication of fiat‑currency loans in Serbia is primar - ily regulated by the Foreign Exchange Operations Act as well as the broader banking regulatory framework. Syndicated loans are extended by a group of lend - ers – typically used for large corporate, infrastructure, or project‑finance transactions – and may include domestic banks participating in international lending syndicates. These loans are executed through contractual arrange - ments co-ordinated by an arranging bank or agent, while all participating banks remain fully responsible for their respective portions of the loan. Each lender is required to conduct its own independent credit risk assessment. The regulatory framework also imposes exposure lim - its, stipulating that a single bank’s exposure to one borrower, or a group of connected borrowers, may not exceed 25% of its capital. This requirement ensures that risk is appropriately shared among multiple lend - ers. Syndicated loans in Serbia are not conducted through online lending platforms. 5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails In Serbia, payment processors do not operate their own payment “rails” as a matter of law. Instead, they rely on existing, regulated payment infrastructure operated by licensed financial institutions or author - ised payment system operators. Under the Law on Payment Services, entities com - monly referred to as “payment processors” generally fall within the category of technical service providers. Their activities – such as data processing and storage, authentication of data and users, provision of IT and communication services, and the supply and main - tenance of devices and terminals used for payment
and similar services – are expressly excluded from the definition of payment services, provided that these entities do not at any point hold, control, or otherwise dispose of users’ funds. As a result, payment processors must rely on exist - ing payment rails, including bank‑operated payment systems, international card schemes (such as Visa and Mastercard), and the infrastructure of licensed electronic money institutions. They may not indepen - dently establish or operate new payment rails unless they obtain authorisation from the National Bank of Serbia to provide payment services or to operate a payment system. 5.2 Regulation of Cross-Border Payments and Remittances Cross‑border payments and remittances in Serbia are regulated through a combination of foreign exchange regulations, the Payment Services Act, and AML/ CFT requirements. These frameworks are supervised primarily by the National Bank of Serbia, along with other competent authorities. Only authorised institu - tions licensed by the NBS may provide cross‑border payment services and remittances. Cross‑border payments and fund transfers must comply with applicable rules on payment transac - tions, which include reporting obligations, permitted transaction purposes, and other regulatory require - ments. Providers are also required to conduct client identification and verification, perform transaction monitoring, carry out risk assessments, report suspi - cious transactions, and apply enhanced measures for high‑risk jurisdictions and clients. The regulatory framework applies mainly to licensed payment service providers, such as banks, payment institutions, and electronic money institutions. Pay - ment processors, acting as technical service provid - ers, fall under indirect regulation to the extent that they support or process cross‑border transactions. Payment processors may participate in cross‑border payments solely as technical service providers – such as by offering data processing or IT infrastructure – provided they do not hold or control client funds. Their AML/CFT and compliance obligations are enforced
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