The start of indirect frontloading depends on the particular model of indirect frontloading, and it lasts up until 31 December 2022, i.e., in accordance with the working hours of Bank branches available for the indirect frontloading of business entities.
Business entities that operate with cash may have a need for an indirect frontloading of euro cash, since during the dual circulation period of cash (1 January - 14 January 2023) they have to, as a general rule, return the change to their customers in euro, and customers may also pay in HRK cash during that period. During the dual circulation period, the business entity may deposit kunas in the Bank, whereby the conversion into euro will be carried out when depositing into the account.
The Bank provides the service of the indirect frontloading of euro cash to business entities that are clients of the Bank and for which a valid due diligence is in place in accordance with the regulations concerning measures for the prevention of money laundering and terrorist financing.
The methods of indirect frontloading vary depending on the size and type of business entity and the amount of such frontloading. Thus, we distinguish micro-business entities and other business entities , i.e., those that are not micro-business entities. Micro-business entities are business entities with less than ten employees and with annual income and/or total assets in the previous business year of up to HRK 15 million and are marked as such in the Unified Accounts Registry.
Micro-business entities may be frontloaded indirectly in three possible models: by frontloading of euro coin starter kits, according to the rules of simplified indirect frontloading, as well as according to the rules of indirect frontloading when higher amounts or earlier time slots are required to take over euro cash than the ones allowed under simplified indirect frontloading.
Regarding non-profit organizations, the beneficiaries of the indirect frontloading service may only be non-profit organizations engaged in the production, sale of goods, or provision of services for achieving profit or income, which are not state budget or off-budget beneficiaries.
Other business entities, i.e., those that are not micro-business entities, can be frontloaded according to the rules of indirect frontloading and by frontloading of euro coin starter kits.
The indirect frontloading of euro cash is a procedure in which the Bank, as of 2 November 2022, will sub-frontload interested business entities with euro cash before the day of the introduction of the euro, after concluding an agreement on indirect frontloading (“agreement”) with the client. Prior to the conclusion of the agreement, the client should agree upon the exact date of the pickup, i.e., book a time slot available for the pickup of euro cash with the relevant relationship manager.
Simplified indirect frontloading is a procedure in which the Bank, as of 27 December 2022, will sub-frontload exclusively micro-business entities with euro cash before the day of the introduction of the euro and in amounts that do not exceed EUR 10,000, and this will be done after the micro-business entity signs the statement on simplified indirect frontloading.
The frontloading of euro coin starter kits is a procedure in which the Bank, as of 1 December 2022, will frontload interested business entities (regardless of the type of business entity) with standardized initial packages of euro coins containing a precisely determined amount of different denominations of euro coins in a predetermined value of EUR 145.50 before the day of the introduction of the euro.
For the frontloading of initial euro coin packages, it is not necessary to sign an agreement or statement beforehand nor to pre-order it with the relevant relationship manager, but the transaction is carried out through the HUB3 form, which is to be filled in the Bank branch available for the indirect frontloading of business entities, whereby for the amount of the packages taken client's transaction account is immediately charged.
See more about the euro coin starter kits here.
If you are interested in indirect frontloading and simplified indirect frontloading with euro cash, please contact your relationship manager for more information about the process and contractual documentation and to book available time slot for the cash pickup.
The list of Bank branches available for indirect frontloading of business entities is available here.
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