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2022-09-29

Circular CN-2022/2104: Procedure for Confiscation of Counterfeit Banknotes

The Maldives Monetary Authority mandates that all commercial banks immediately confiscate suspected counterfeit banknotes in the presence of customers, stamp them as counterfeit, and issue a detailed receipt capturing customer identification and note specifics. Banks must maintain strict chain-of-custody records, submit confiscated notes to the Authority within one business day in the Greater Male’ area or five days for outer islands, and forward all documentation directly to the Cash and Vault Management Section. If verification confirms the notes are genuine, the Authority will return them and the bank must fully reimburse the customer, while this directive simultaneously annuls four previous circulars governing counterfeit handling.

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29 September 2022 For Immediate Compliance by all the Banks: Procedure for Confiscation of Counterfeit Banknotes

  1. Banks shall confiscate counterfeit banknotes or any doubtful banknotes immediately (both foreign and local currencies) when presented to the Banks counter; however, do not remove the note(s) out of the Customer’s sight.
  2. Upon confiscation, Banks shall follow the below steps immediately in the presence of the Customer: 2.1 Stamp “COUNTERFEIT” on both sides of each banknote (do not return the banknote(s) to the Customer, under any circumstance). 2.2 Issue a receipt to the Customer (template attached herewith), recording the following details. a) Details for the banknote(s): Currency, Denomination, Serial Number, Date, and the number of banknote(s). b) Details of the Customer: Name, Identity Card Number / Passport Number, Current Address, Contact Number and Signature (obtain copies of the customer’s identification documents). 2.3 Make three original copies of the receipt and get them signed by the customer and the officer of the Bank who confiscated the banknote(s). 2.4 Handover one copy of the receipt to the customer and retain one copy with the Bank. 2.5 Inform the customer that the banknote(s) will be sent to Maldives Monetary Authority (MMA) for verification, and that they may appeal to MMA directly to: Cash and Vault Management Section Banking and Payments Division Maldives Monetary Authority Majeedhee Building, Boduthakurufaanu Magu Male’20182, Maldives Contact No: +960 3331739 Email: cash.operations@mma.gov.mv Circular No: CN-2022/2104

2.6 Give the customer a relevant contact name and number of the Bank. 3. Following confiscation of the banknote(s), Banks shall maintain proper and accurate details regarding the chain of custody of the banknote(s) and Banks shall provide the chain of custody details (template attached herewith) to MMA. 4. Confiscated banknote(s) from branches in Male’ or Greater Male’ area shall be presented to MMA on the day of confiscation or latest by the next business day. 5. Confiscated banknote(s) from branches in outer islands shall be presented to MMA as soon as possible, but not later than five business days. 6. Confiscated banknote(s) shall be packed separately and must be labelled “Counterfeit Banknotes for verification by MMA.” 7. The packed counterfeit banknote(s) shall then be sent directly to Cash and Vault Management Section of MMA together with the third copy of the receipt issued to the customer along with the copies of the customer’s identification documents and the details of chain of custody for counterfeit banknote(s). 8. If MMA finds that the confiscated banknote(s) are genuine, the banknote(s) will be returned to the Bank and the Bank shall reimburse Customer for the full value of the respective banknote(s). Following the issuance of this Circular, our Circulars CN-BS/2004/6 (7 April 2004), CN-BS/2004/19 (26 October 2004), CN-CS/2010/2 (7 January 2010) and CN-2022/862 (20 April 2022) is hereby annulled. Yours sincerely, Mariyam Hussain Didi Assistant Governor Banking Operations

RECEIPT FOR CONFISCATED COUNTERFEIT BANKNOTES REF: xxxxxxxxxxx DATE: xx.xx.xxxx Currency Denomination Serial Number Date on the Banknote No.of Banknotes Total USD xxx xxxxx xxxx The above mentioned banknote(s) have been confiscated in accordance with MMA’s circular on procedure for confiscation of counterfeit banknotes.

  1. Banknote confiscated bank: .........................................................
  2. Date: ................................................... Time: ............................ Officer of the Bank who confiscated the banknotes: Name: Designation: Contact Number: Signature: Stamp of the Bank Details of the Customer: Name: Current Address: ID card/Passport Number: Contact Number: Signature:

CHAIN OF CUSTODY FOR CONFISCATED COUNTERFEIT BANKNOTES REF: xxxxxxxxxxx DATE: xx.xx.xxxx Detail Name Designation Contact Number Date Time Signature For Banks purpose Received from Bank counter Supervisor 1 Supervisor 2 Despatcher For MMA purpose Received from MMA counter Supervisor 1 Note: Add rows and details as required

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