Circular Re. Technical Sorting Instructions for the Sixth Edition of Saudi Banknotes

S Saudi Central Bank SAMA Technical Sorting Instructions for the Sixth Edition of Saudi Banknotes First Edition (Dhul-Hijjah 1447 AH - May 2026)

Page 3

Table of Contents: Part Chapter One: General Provisions Chapter Two: Counting and Sorting Controls Chapter Three: Counterfeit Saudi Banknotes Chapter Four: Manufacturing Material Defects Chapter Five: Quality of Saudi Banknotes Chapter Six: Level of Saudi Banknote Validity Standards Chapter Seven: Density Measurements Chapter Eight: Quality Control Chapter Nine: Machine Sensors Chapter Ten: Follow-up Stage Chapter Eleven: Final Provisions Appendix No. (1) Quality Levels of Saudi Banknotes

Article One: Chapter One General Provisions The terms and expressions mentioned below, wherever they appear in these Instructions, have the meanings indicated opposite them - unless the context requires otherwise:

Term	Definition
Central Bank	The Saudi Central Bank.
Instructions	Technical Sorting Instructions for the Sixth Edition of Saudi Banknotes.
Financial Institutions	Banks, cash centers, and exchange centers involved in counting and sorting Saudi banknotes under the supervision and oversight of the Central Bank.
Counting and Sorting Machines	Devices for counting and sorting Saudi banknotes, varying in size and speed, according to denominations, quality levels, and performing verification operations, such as detecting counterfeit money.
Validity Standards	A set of technical and physical elements used to evaluate the quality of Saudi banknotes and determine their integrity and suitability for circulation, or their loss of characteristics due to external influences.
Security Ink Marked Banknotes	Saudi banknotes that have been exposed to security inks through the ejection of security ink from self-destruction devices in cash transport bags or ATM boxes, which resulted in covering some of their features and rendering them damaged and unfit for circulation.
Saudi Banknotes	Saudi banknotes of the Sixth Edition.
Stains	Any contamination affecting the appearance of Saudi banknotes.
Counting and Sorting	The processes of counting, sorting, and inspecting Saudi banknotes using counting and sorting machines.
Validity Rejection Level	Models of Saudi banknotes representing the dividing line between valid and invalid Saudi banknotes for circulation.
Specified Defect Levels	Standard limits determining what is permitted and not permitted regarding defects in Saudi banknotes during counting and sorting operations.
Standard Sample	A sample of Saudi banknotes that has been pre-sorted, used as a reference to verify that financial institutions comply with validity standards during counting and sorting operations.

Article Two: The Instructions aim to achieve the following:

1. Improve and control the quality of circulating Saudi banknotes within the Kingdom of Saudi Arabia, and achieve a high level of circulation quality control.
2. Establish uniform validity standards regarding the surface of Saudi banknotes and their technical specifications.
3. Monitor the quality of circulating Saudi banknotes within the Kingdom of Saudi Arabia through a set of technical operational standards that financial institutions must comply with.

Article Three: The Instructions apply to financial institutions.

Article Four: Chapter Two Counting and Sorting Controls Financial institutions must comply with the following controls when counting and sorting to determine validity standards:

1. Saudi banknotes must be sorted by means of counting and sorting machines.
2. Saudi banknotes must not be counterfeit.
3. Saudi banknotes must be free of large holes, tears, or stains within the permitted limits, and free of any missing parts, folds, or adhesive tapes, and must not be security ink marked banknotes.
4. The external appearance of the surface of Saudi banknotes must be uniform, and the level of dirtiness must not exceed the permitted limits.

Article Five: Chapter Three Counterfeit Saudi Banknotes Without prejudice to the Central Bank's instructions regarding the control of counterfeit banknotes at financial institutions, institutions must adhere to the following:

1. Ensure that counterfeit Saudi banknotes detected are not returned to the hands of users.
2. Ensure that counting and sorting machines are capable of verifying the security features specified in Saudi banknotes, which are as follows:
   • Magnetic threads.
   • Magnetic serial numbers.
   • Inks that react to infrared rays.
   • Phosphorescent shapes.
3. Ensure that counting and sorting machines have features to detect counterfeit Saudi banknotes or those that do not meet acceptance conditions.

Article Six: Chapter Four Manufacturing Material Defects Financial institutions must verify the ability of counting and sorting machines to detect and sort Saudi banknotes with manufacturing material defects, according to the following technical limits:

• Length: 4 mm.
• Width: 2 mm.
• Area of torn part: 205 mm².
• Length of tear: 2 mm.
• Area of missing corners: 200 mm².
• Area of folded corners: 150 mm².
• Holes: 2 mm.
• No adhesive tape allowed.

Article Seven: Chapter Five Quality of Saudi Banknotes Financial institutions must ensure that Saudi banknotes achieve the acceptable level of quality, by not exceeding the specified standards for dirtiness, stains, writing, defacing drawings, and poor usage. Saudi banknotes are considered unfit for circulation if dirtiness exceeds the levels shown in the graphical table provided in Article Ten of the Instructions.

Article Eight: The validity standards of Saudi banknotes consist of the following: A. Dirtiness: The Central Bank provides financial institutions with three models of Saudi banknotes from all denominations - with a maximum of two in circulation - which are characterized as being close to the validity rejection level. Financial institutions bear the responsibility of verifying that suppliers and manufacturers prepare appropriate testing platforms - if necessary - to program counting and sorting machines.

B. Stains: Financial institutions must adhere to not accepting any Saudi banknote that exceeds the permitted limit for stains (10 mm by 15 mm), which may result from any contamination affecting the appearance of the note.

C. Writing and Drawings:

1. Financial institutions must adhere to not accepting any Saudi banknote that includes writing or drawings on the King's portrait area, whether printed or present in the watermark.
2. Financial institutions must remove Saudi banknotes whose dirtiness is caused by writing or drawings, regardless of the method or tool used, and classify them as Saudi banknotes unfit for circulation.

D. Security Ink Marked Banknotes:

1. Financial institutions are prohibited from accepting security ink marked banknotes, and they must be submitted directly to one of the Central Bank's branches.
2. Circulation of security ink marked banknotes is prohibited.
3. Financial institutions must ensure that counting, sorting, and cash deposit machines are capable of detecting and rejecting security ink marked banknotes.
4. Financial institutions must follow controls and procedures to compensate for Saudi banknotes marked with security inks resulting from technical and human errors, if the inks are marked on the currency due to a technical or human error.

Article Nine: Chapter Six Level of Saudi Banknote Validity Standards Financial institutions must comply with the validity standards of Saudi banknotes in a manner that contributes to maintaining the quality of currency circulating nationally in the Kingdom. The validity of Saudi banknotes is divided into four main levels reflecting their suitability for circulation, which are:

• Valid for circulation.
• Valid for circulation with some defects.
• Invalid for circulation with some defects.
• Invalid for circulation. The technical differences and illustrative models for these levels are determined according to what is stated in Appendix No. (1): Quality Levels of Saudi Banknotes.