CIEX No. 31/2023: Procedures for Sending US Dollars to the Federal Reserve Bank

EXTERNAL CIRCULAR
La Paz, July 26, 2023
CIEX No. 31/2023
FROM: GENERAL MANAGEMENT
TREASURY DEPARTMENT
TO: FINANCIAL INTERMEDIATION ENTITIES
SUBJECT: SENDING US DOLLARS TO THE FEDERAL RESERVE BANK

Gentlemen:

In compliance with the "Cash Services Procedures Manual" 1, issued by the Federal Reserve Bank (FRB), effective immediately, Financial Intermediation Entities (EIFs) that make deposits of US dollars (USD) in cash at the Central Bank of Bolivia (BCB) must comply with the following:

1. Classification of USD packages as "non-contaminated" and "contaminated"

The criteria for classifying USD banknotes as "contaminated," according to the aforementioned Procedures Manual, are as follows:

• Prolonged exposure to water or other liquids, resulting in the presence of mold.
• Exposure to blood, urine, feces, or any other bodily fluid, including the secretion of any body cavity, corpse, or animal.
• Exposure to wastewater.
• Exposure to any chemical, liquid, or foreign substance that could pose a risk to health or sanitary safety.

These characteristics must be clearly distinguishable and perceptible in each banknote classified as "contaminated," as shown in the following example graphic:

1 The Cash Services Procedures Manual is available at:
https://www.frbservices.org/resources/financial-services/cash/exception-processing/contaminated-coin-currency.html

Image of a "contaminated" USD 100 banknote

2. Presentation of banknotes

For "non-contaminated" and "contaminated" banknotes, the following must be considered:

• Banknotes must present the portrait side facing forward.
• The orientation of the portrait must be the same.
• Banknotes must be presented flat.
• Edges and corners must be aligned.
• Mutilated banknotes will not be accepted; that is, banknotes damaged to the extent that only half or less of the banknote remains, or alternatively, banknotes whose condition is such that their value is questionable and requires expert valuation before any exchange takes place.

3. Presentation of bands

For bands of "non-contaminated" and "contaminated" banknotes, the following must be considered:

• Each band must contain one hundred (100) banknotes of the same cut or denomination.
• Bands must be printed on white paper with colored edges (mustard for USD 100 banknotes, brown for USD 50, lilac for USD 20, yellow for USD 10, red for USD 5, green for USD 2, and light blue for USD 1), this to identify the denomination and the amount in US dollars.
• The acronym of the EIF must be printed on one side and at the ends of the band.
• The place and date of formation of the package must be located on each band, in a space that is visible through the shrink wrap (heat-sealed).
• The cashier's seal must be located in the center of the band.
• The ink for the acronyms and seals must be black.
• Bands must not contain staples, clips, or adhesive tape.
• Each band must be joined on the reverse side of the portrait.

In order to guarantee the integrity of all stacks of banknotes to be sent to the FRB, it is essential that EIFs have packaging bands with a weight of at least one hundred (100) grams per square meter.

4. Presentation of packages

For packages of "non-contaminated" and "contaminated" banknotes, the following must be taken into account:

• Each package must contain one thousand (1,000) banknotes of the same cut or denomination, packaged in ten (10) bands (one hundred banknotes per band).
• Packages must not contain clips, staples, or adhesive tape.
• Packages must be heat-sealed, showing the EIF logo on the band.

Packages of "contaminated" banknotes must be clearly identified with the word "CONTAMINATED," written with a permanent marker on the heat seal.

5. Sending USD to the Federal Reserve Bank

Before sending USD in cash to the FRB, the Treasury Department of the BCB, together with a representative of each EIF, will proceed as follows:

A. Preparation of Monetary Material between the EIF and the BCB

• The heat seal will be removed from each of the packages containing ten (10) stacks, totaling one thousand (1,000) banknotes.
• Compliance with the provisions on the ordering and classification of banknotes and bands will be verified.
• "Non-contaminated" USD packages will be secured with two (2) elastic bands, located on the sides of each package.
• "Contaminated" USD packages will be secured with one elastic band in the center of each package. The EIF that has packages of contaminated USD must fill out the "Detail of Contaminated Currency Deposits" form.
• In the event of identifying misclassified packages with "contaminated" and "non-contaminated" banknotes (mixed packages), the EIF will be immediately notified to withdraw them.

B. Bagging of Monetary Material with the Monetary Material and/or Values Transport Company

• For "non-contaminated" banknotes, the bagging will consist of sixteen (16) packages of the same denomination, introduced into a transparent self-sealing security bag, which will be sealed immediately.
• For "contaminated" banknotes, the bagging must be done in two (2) bags large enough to allow the movement of the monetary material for initial visual inspection, grouping a maximum of four (4) packages. The word "CONTAMINATED" must be written with a permanent marker in large letters on the outer bag. Any external printing on the bags must not inhibit the visualization of the packaged content.

For any inquiries, please contact the Treasury Department of the BCB at phones 2409090 extension 3001, 3002, 3003, 3004, and 3007.

Circular Externa SGDB No. 010/2014 of April 4, 2014, is hereby repealed.

Sincerely.

DIGITALLY SIGNED DOCUMENT
Claudia Fabiola Soruco Carballo
TREASURY MANAGER
Rubén Gonzalo Ticona Chique
GENERAL MANAGER
Validate digital signatures at: validar.firmadigital.bo RGTCH/CFSC/sta/gdfa/jchg/jshb/smma