The Central Bank of the Republic of Kosovo (CBK) announced on December 20, 2024, that it has submitted an updated pre-application, including the relevant laws approved by the Assembly and regulations adopted by the CBK Board, to complete the pre-application initially submitted on October 14, 2024. The preliminary submission referred to the draft laws as they were at the time, but the EU’s DG FISMA (Directorate-General for Financial Stability, Financial Services and Capital Markets Union) notified that the draft laws could only be considered after the final approval of the related legislation.
“Following the approval of three crucial financial sector laws related to Kosovo’s membership in the Single Euro Payments Area (SEPA)—the Law on Banks, the Law on Payment Services, and the amendments to the Law on Preventing Money Laundering and Terrorist Financing—by the Kosovo Assembly on December 5, 2024, the CBK Board adopted 20 related regulations on December 17, 2024,” the CBK stated. These regulations will come into force only once the respective laws are enacted. This progress has enabled the completion of the pre-application process for SEPA, with the necessary legislative and regulatory package.
The CBK further explained that these laws and regulations were identified as essential criteria for completing the pre-application, allowing relevant institutions of the European Commission to proceed with the initial review of Kosovo’s compliance with SEPA membership criteria, following the practice applied to other countries in the region.
“After this step, depending on the European Commission’s handling of issues related to the enactment of these laws, and provided that constitutional procedural reviews do not obstruct the evaluation process, we expect Kosovo to receive assessments regarding its legal and technical compliance for SEPA membership. The entry into force of these laws and regulations will finalize this preliminary process and prepare the final application,” the CBK added.
The completion of this phase allows DG FISMA to provide a comprehensive assessment, including possible comments and recommendations, before the final application is submitted to the European Payments Council (EPC). A final decision regarding Kosovo’s SEPA membership may be expected next year, as part of the broader Western Balkans integration initiative, provided no delays affect the process.
The CBK expressed gratitude for the continuous cooperation and support from the European Commission, the World Bank, and other partners in submitting the pre-application. It also thanked the institutions of the Republic of Kosovo for their contribution and support during the pre-application process, emphasizing the importance of swift clarification regarding the relevant legislation.
The CBK concluded that SEPA integration is expected to bring significant economic and financial benefits, including an estimated annual saving of around €55 million in fees for international transfers, according to the German Expert Group (GET), benefiting both citizens and businesses in Kosovo.
