CIRCULAR NO. 61
Series of
1995
CONSOLIDATED RULES AND REGULATIONS ON CURRENCY
NOTES AND COINS
Pursuant to Monetary Board Resolution No. 9 dated
January 4, 1995, the following rules and regulations governing treatment and
disposition of counterfeit Philippine and foreign currency notes and coins;
the reproduction and/or use of facsimiles of legal tender Philippine
currency notes and coins; the replacement and redemption of legal tender
Philippine currency notes and coins considered mutilated or unfit for
circulation; and the treatment and disposition of Philippine currency notes
and coins called in for replacement, are hereby promulgated:
DEFINITION OF TERMS
For purposes of this circular, the following
terms are defined:
A. LEGAL TENDER PHILIPPINE CURRENCY —
Notes and coins issued and circulating in accordance with R.A. No. 265 as
amended and/or R.A. No. 7653, which when offered for the payment of public
or private debt must be accepted.
B. COUNTERFEIT NOTE —
An imitation of a legal and genuine note intended to deceive or to be taken
for that which is original, legal and genuine.
C. COUNTERFEIT COIN —
An imitation or forged design of a genuine and legal coin regardless of its
intrinsic value or metallic composition, intended to deceive or pass for the
genuine coin.
D. UNAUTHORIZED REPRODUCTION OF LEGAL
TENDER PHILIPPINE NOTE — A reproduction of a facsimile
or any illustration or object bearing the likeness or similitude of legal
tender Philippine currency note or any part thereof, without prior authority
from the Governor of Bangko Sentral or his duly authorized representative.
E. UNAUTHORIZED REPRODUCTION OF LEGAL
TENDER PHILIPPINE COIN — A reproduction of a facsimile
or any object in metal form bearing the likeness or similitude of legal
tender Philippine currency coin or any part thereof, without prior authority
from the Governor of Bangko Sentral or his duly authorized representative.
CHAPTER I
Treatment and Disposition of Counterfeit
Philippine and Foreign Currency Notes and Coins
SECTION 1. Authority. — Section 50 of
R. A. 7653, provides that:
"The Bangko Sentral shall have the sole power and
authority to issue currency, within the territory of the Philippines. No
other person or entity, public or private, may put into circulation notes,
coins or any other object or document which, in the opinion of the Monetary
Board, might circulate as currency, nor reproduce or imitate the facsimiles
of Bangko Sentral notes without prior authority from the Bangko Sentral.
"The Monetary Board may issue such regulations as
it may deem advisable in order to prevent the circulation of foreign
currency or of currency substitutes as well as to prevent the reproduction
of facsimiles of Bangko Sentral notes.
"The Bangko Sentral shall have the authority to
investigate, make arrests, conduct searches and seizures in accordance with
law, for the purpose of maintaining the integrity of the currency.
"Violation of this provision or of any regulation
issued by the Bangko Sentral pursuant thereto shall constitute an offense
punishable by imprisonment of not less than five (5) years but not more than
ten (10) years. In case the Revised Penal Code provides for a greater
penalty, then that penalty shall be imposed."
SECTION 2. Any person or entity, public or
private, who receives or takes hold of a note or coin which is counterfeit
or whose genuineness is questionable whether Philippine or foreign currency
shall issue a temporary receipt to its owner/holder and must indicate
therein his name, address and community tax certificate number or the
passport number, in case of a foreigner, the date of receipt, the
denomination, serial number of the note or the coin series as the case may
be. The owner/holder shall be required to countersign the receipt and in
case of refusal, the reason shall be stated in the receipt.
SECTION 3. Any person or entity, public or
private, who receives, takes hold or has in his possession a note or a coin
which is counterfeit or whose genuineness is questionable, whether
Philippine or foreign currency, shall forward the same within five (5)
working days from date of receipt/possession thereof, together with a copy
of the temporary receipt required under Section 2 hereof, for examination
to:
THE CASH DEPARTMENT
Bangko Sentral ng
Pilipinas
A. Mabini St., Manila
In cases where personal delivery to the Cash
Department (CD), Bangko Sentral ng Pilipinas (BSP), Manila, is not feasible,
delivery of the aforestated notes or coins may be made through any of the
following agencies:
(a) The Bangko Sentral Regional Offices/Units; or
(b) Any banking institution under the supervision
of the Bangko Sentral
SECTION 4. Any law enforcement agency which
conducted any seizure of notes and coins, whether Philippine or foreign,
which are counterfeits or suspected to be counterfeit currency, shall within
five (5) working days from date of seizure, advise in writing the Cash
Department, BSP, Manila of said seizure enclosing therewith a copy of the
receipt and inventory taken on the seized items. All seized notes or coins
which are not or no longer needed as evidence in any investigation/legal
proceedings shall be immediately turned over to the Cash Department, BSP,
for proper disposition.
SECTION 5. The Cash Department, BSP, after
examining all notes and coins submitted to it for examination and/or
determination as to its genuineness, shall:
(a) Issue a corresponding certification for the
currency examined, if needed;
(b) Stamp the word "COUNTERFEIT" on both the face
and the back of each note found to be counterfeit;
(c) Return to the owner/holder, and/or sender the
Philippine or foreign currency notes or coins found to be genuine in
accordance with existing accounting and auditing regulations.
SECTION 6. All notes and coins, whether
Philippine or foreign, determined by the CD, BSP to be counterfeit currency,
shall not be returned to the owner/holder, but shall be retained and later
disposed of in accordance with such guidelines as may be adopted by the BSP,
except those which will be used as evidence in an investigation or legal
proceedings, in which case, the same shall be retained and preserved by the
BSP for evidentiary purposes.
SECTION 7. The BSP shall extend assistance as may
be requested of it in the investigation, apprehension and/or prosecution of
person/s responsible for counterfeiting of notes and coins, both Philippine
or foreign.
CHAPTER II
Reproduction and/or Use of Facsimiles of Legal
Tender Philippine Currency Notes
SECTION 8. No person or entity, public or
private, shall design, engrave, print, make or execute in any other manner,
or utter, issue, distribute, circulate or use any handbill, advertisement,
placard, circular, card, or any other object whatsoever bearing the
facsimile, likeness or similitude of any legal tender Philippine currency
note, or any part thereof, whether in black and white or any color or
combination of colors, without prior authority therefore having been secured
from the Governor, BSP or his duly authorized representative.
SECTION 9. The reproduction and/or use of
facsimiles or any illustration bearing the likeness or similitude of legal
tender Philippine currency notes referred to in the foregoing section may be
authorized by the Governor, BSP or his duly authorized representative, for
printed illustrations in articles, books, journals, newspapers or other
similar materials and strictly for numismatic, educational, historical,
newsworthy or other purposes which will maintain, promote or enhance the
integrity and dignity of said note, provided, however, that any such
facsimile or illustration shall be of a size less than three-fifths (3/5) or
more than one and one-half (1½) times in size of the currency note being
illustrated and that there will be no deviation from the purpose for which
the notes will be used.
CHAPTER III
Reproduction and/or Use of Facsimiles of Legal
Tender Philippine Currency Coins
SECTION 10. No person or entity, public
or private, shall design, engrave, make or execute in any other manner, or
use, issue, or distribute any object whatsoever bearing the likeness or
similitude as to design, color or the inscription thereon of any legal
tender Philippine currency coin or any part thereof, in metal form,
irrespective of size and metallic composition, without prior authority from
the Governor, BSP or his duly authorized representative.
SECTION 11. The reproduction and/or use of
facsimiles or of any object bearing the likeness or similitude of legal
tender Philippine currency coins referred to in the foregoing section may be
authorized by the Governor, BSP or his duly authorized representative,
strictly for numismatic, educational, historical and other purposes which
will maintain, promote or enhance the integrity and dignity of said coins.
CHAPTER IV
Clean Note Policy
SECTION 12. To effect an expeditious withdrawal
from circulation of unfit Philippine currency notes classified under Section
15, Chapter V of this Circular, banks and their branches shall observe the
following guidelines and procedures when making cash deposits with the Cash
Department or any of the Regional Offices/Units of Bangko Sentral ng
Pilipinas:
(a) Banks shall classify their cash deposits into
two types: (1) clean or fit notes and (2) dirty or unfit notes in accordance
with the "Currency Guide for Bank Tellers, Money Counters and Cash
Custodians" prepared by Cash Department, BSP. The notes thus classified
shall be further sorted by series and by denomination.
(b) Banks shall provide securely sealed bags or
containers separately for the clean or fit notes and for the dirty or unfit
notes accompanied by a deposit slip for each type/category. The deposit slip
for unfit currency notes shall be clearly labelled as "unfit".
(c) To facilitate handling of deposits, banks
deposits shall be packed in sealed bags or containers in standard quantity
of twenty (20) full bundles per denomination (each bundle containing 1,000
notes in ten (10) equal straps, each strap containing 100 notes).
(d) Provincial branches of banks may make direct
deposits of currency notes, duly identified and sorted, with the nearest
Bangko Sentral Regional Office/Unit. In areas where there are no Bangko
Sentral Regional Office/Unit, provincial branches of banks shall arrange
with their respective Head Offices the shipment of their unfit or dirty
notes for deposit with BSP Cash Department in Manila. Cost of shipment and
other related expenses to be incurred shall be solely for the account of the
bank concerned.
SECTION 13. The Cash Department and the Regional
Offices/Units of Bangko Sentral may refuse acceptance of cash deposits that
do not conform to these guidelines and procedures.
CHAPTER V
Replacement and Redemption of Legal Tender
Philippine Currency Notes and Coins Considered Mutilated or Unfit for
Circulation
SECTION 14. Authority. — Section 56 of
R.A. 7653 provides that:
"The Bangko Sentral shall withdraw from
circulation and shall demonetize all notes and coins which for any reason
whatsoever are unfit for circulation and shall replace them by adequate
notes and coins. Provided, however, that the Bangko Sentral shall not
replace notes and coins the identification of which is impossible, coins
which show signs of filing, clipping or perforation, and notes which have
lost more than two-fifths (2/5) of their surface or all of the signatures
inscribed thereon. Notes and coins in such mutilated condition shall be
withdrawn from circulation and demonetized without compensation to the
bearer."
SECTION 15. A currency note shall be considered
unfit for circulation when:
(a) It contains heavy creases which break the
fiber of the paper and indicate that disintegration has begun. Provided,
however, that mere creasing or wrinkling which has not broken nor weakened
the note does not render the note unfit for circulation; or
(b) It is badly soiled/contaminated and/or with
writings even if it has proper life or sizing; or
(c) It presents a limp or raglike appearance.
SECTION 16. A currency note shall be considered
mutilated when:
(a) Torn parts of banknote are joined together
with adhesive tape in a manner which tries to preserve as nearly as possible
the original design and size of the note; or
(b) The original size of the note has been
reduced/lost through wear and tear or has been otherwise torn, damaged,
defaced or perforated through action of insects, chemicals or other causes;
or
(c) It is scorched or burned to such an extent
that although recognizable as such, it has become frail and brittle as to
render further handling thereof impossible without disintegration or
breaking; or
(d) It is split edgewise; or
(e) It has lost all the signatures inscribed
thereon.
SECTION 17. A currency coin shall be considered
unfit for circulation when:
(a) It is bent or twisted out of shape or
defaced, but its genuineness and/or denomination can still be readily and
clearly determined/identified; or
(b) It has been considerably reduced in weight by
natural abrasion/wear and tear.
SECTION 18. A currency coin shall be considered
mutilated when:
(a) It shows signs of filing, clipping or
perforation; or
(b) It shows signs of having been burned or has
been so defaced, that its genuineness and/or denomination cannot be readily
and clearly identified.
SECTION 19. Currency notes and coins considered
unfit for circulation shall not be recirculated, but may be presented for
exchange to or deposited with any bank.
SECTION 20. Currency notes and coins considered
mutilated shall not be recirculated nor deposited/exchanged, but may be
presented or forwarded, for determination of their redemption/exchange value
to:
(a) The Cash Department
Bangko Sentral ng Pilipinas
A. Mabini St., Manila; or
(b) The nearest Bangko Sentral Regional
Office/Unit.
SECTION 21. The Bangko Sentral ng Pilipinas (BSP)
shall replace or redeem notes and coins considered unfit for circulation or
mutilated except when such notes and coins fall under any of the following
classifications:
(a) Notes and coins the identification of which
is impossible; or
(b) Coins which show signs of filing, clipping or
perforations; or
(c) Notes which have lost more than two-fifths
(2/5) of their surface or all of the signatures inscribed thereon.
Notes and coins falling under any of the
classifications mentioned under this Section shall be withdrawn from
circulation and demonetized without compensation to the owner/bearer.
CHAPTER VI
Treatment and Disposition of Philippine
Currency Notes and Coins Called in for Replacement
SECTION 22. Section 57 of
R.A. 7653, provides that "The Bangko
Sentral may call in for replacement notes of any series or denomination
which are more than five (5) years old and coins which are more than ten
(10) years old.
Notes and coins called in for replacement in
accordance with this provision shall remain legal tender for a period of one
(1) year from the date of call. After this period, they shall cease to be
legal tender but during the following year, or for such longer period as the
Monetary Board may determine, they may be exchanged at par and without
charge in the Bangko Sentral and by agents duly authorized by the Bangko
Sentral for this purpose. After the expiration of this latter period, the
notes and coins which have not been exchanged shall cease to be a liability
of the Bangko Sentral and shall be demonetized. The Bangko Sentral shall
also demonetize all notes and coins which have been called in and replaced.
SECTION 23. Any person or entity, public or
private, who receives, takes hold or has in his possession Philippine
currency notes and coins called in for replacement shall forward the same
during the redemption period to:
(a) Any authorized agent banks of the Bangko
Sentral ng Pilipinas when the notes are still considered legal tender,
within one year from the date of call; or
(b) The BSP Cash Department or BSP Regional
Offices/Cash Units, within the redemption period as may be determined by the
Monetary Board.
SECTION 24. The Cash Department or the BSP
Regional Cash Units shall exchange the notes/coins called in for replacement
if presented to the BSP within the redemption period as determined by the
Monetary Board and subsequently dispose the same in accordance with BSP
procedures for disposal.
CHAPTER VII
Penalties
SECTION 25. Any violation of the provisions of
Sections 8 and 9, Chapter II, and Sections 10 and 11, Chapter III, of this
Circular, shall subject the offender to imprisonment of not less than five
(5) years, but not more than ten (10) years. In case the Revised Penal Code
provides for a greater penalty, then that penalty shall be imposed.
CHAPTER VIII
Repealing Clause
SECTION 26. All Central Bank Circulars, pertinent
provisions in the Manual of Regulations for Banks and Other Financial
Intermediaries and other rules and regulations which are contradictory or
inconsistent with this Circular are hereby revoked and repealed.
CHAPTER IX
Effectivity Clause
SECTION 27. This Circular shall take effect
immediately.
FOR THE MONETARY BOARD:
GABRIEL C. SINGSON
Governor