FOREIGN EXCHANGE >> LIGHT ON PROVISION
Basic Provisions
Subject Matter of the Act

Article 1

(1) This Act governs:
1. transactions between residents and non-residents in foreign means of payment and in kuna;

2. transactions between residents in foreign means of payment;

3. unilateral transfers of assets from and into the Republic of Croatia that cannot be considered transaction executions between residents and non-residents.

(2) Transactions referred to in paragraph 1 of this Article shall imply current and capital transactions and their execution by means of payments, collection or transfers.

Residents and Non-Residents

Article 2
(1) Under the terms of this Act, the term residents shall mean:

1. legal persons with a head office in the Republic of Croatia, except their foreign branches;

2. branches of foreign companies and sole traders enrolled in a register kept by a competent government authority or administration in the Republic of Croatia;

3. sole traders, craftsmen, and other natural persons with a head office or a place of residence in the Republic of Croatia who are self-employed and perform the economic activity of their registration (hereinafter: individual undertakings);

4. natural persons with a place of residence in the Republic of Croatia;

5. natural persons staying in the Republic of Croatia on the basis of a valid residence permit for a minimum period of 183 days;

6. diplomatic, consular and other representative offices of the Republic of Croatia abroad financed by the budget and Croatians citizens employed in those representative offices, including their family members.

(2) All other persons not stated in paragraph 1 of this Article shall be considered non-residents.

Banks and Authorized Companies

Article 3
(1) Under the terms of this Act, the term bank shall imply a financial institution licensed by the Croatian National Bank and authorized to perform transactions referred to in this Act and prescribed by the Banking Act, a non-resident bank authorized, pursuant to the Banking Act, to provide banking services directly in the territory of the Republic of Croatia and the Croatian Bank for Reconstruction and Development.

(2) Authorized company shall imply a company licensed by the Croatian Securities Exchange Commission, which conducts securities transactions pursuant to provisions of the Securities Market Act.

Foreign Means of Payment

Article 4
(1) Foreign means of payment, under the terms of this Act, shall comprise foreign exchange, foreign cash, checks, and other monetary instruments denominated and payable in foreign currency.
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(2) Foreign exchange, under the terms of this Act, shall mean monetary claims from abroad.

(3) Foreign cash (banknotes and coins) shall mean monetary claims on the central bank or government of the country of issue.

(4) Checks and other monetary instruments denominated and payable in foreign currency shall mean monetary claims on their issuers.

Securities and Derivative Financial Instruments

Article 5

(1) Securities shall mean securities defined in accordance with the Securities Market Act.

(2) Securities traded in the capital markets, under the terms of this Act, shall comprise shares, bonds and other debt securities issued in a series with a maturity of over one year.

(3) Securities traded on the money market, under the terms of this Act, shall comprise short-date securities issued in a series with a maturity of under one year, such as Treasury bills, Croatian National Bank bills, commercial papers, certificates of deposit, and banker’s acceptances and long-dated debt securities with maximum remaining maturity of one year.

(4) Derivative financial instruments, under the terms of this Act, shall comprise securities or agreements whose value changes in accordance with the changes in the value of financial instruments and any other legal arrangements from which they are derived.

Domestic and Foreign Securities

Article 6
(1) Domestic securities, under the terms of this Act, shall be securities issued by a resident issuer and depository bills issued abroad on the basis of the underlying domestic security.

(2) Securities not referred to in paragraph 1 of this Article shall imply foreign securities.
Capital Transactions