Governer of NBS, Radovan Jelasic, announced increased control of banks for stopping of money washing

The Governer of National bank of Serbia, Radovan Jelasic, announced that application of Basel agreement 2 in Serbia, which means stronger control of business banks' work, would allow a more realistic evaluation of their foundation capital, and in relation to that he announced reaching of underlaw acts about Law on banks, by October, 2006.

On the round table about application of Basel agreement 2 and stopping of money washing, Jelasic said that by applying those principals a supervision of NBS would be stronger, that is the level of cooperation between central and commercial banks would be different, and NBS would make more attention to system functioning of banks and not to individual transactions.

Director of Department for money washing stopping, Julije Miladinovic, evaluated that the banks were important in the chain for discovering unlegally earned money, pointing that their mission was to recognize all suspicious transactions, adding that for stopping of this kind of criminal activity in the banking sector was decisive for the banks to meet their clients and their financial possibilities.

He reminded that by the Law on money wash stopping, adopted in 2005, banks had duty to report any cash transaction higher than 15.000 eur, as well as all evaluated as suspicious.

Based on this regulation, banks have possibility to stop within 3 days any such transaction and in cooperation with Department for money wash stopping check the origin on that money.