CIEX No. 56/2020: Update of the Instruction for the Seizure, Sequestration, and Invalidation of Counterfeit and Double-Series Banknotes and Coins

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia EXTERNAL CIRCULAR La Paz, December 17, 2020 CIEX No. 56/2020 FROM: GENERAL MANAGEMENT TREASURY DEPARTMENT TO: FINANCIAL INTERMEDIATION ENTITIES, PUBLIC MINISTRY, SPECIAL FORCE AGAINST CRIME (FELCC), AND THE GENERAL PUBLIC SUBJECT: UPDATE OF THE INSTRUCTION FOR THE SEIZURE, SEQUESTRATION, AND INVALIDATION OF COUNTERFEIT BANKNOTES AND COINS AND DOUBLE-SERIES BANKNOTES THROUGHOUT THE NATIONAL TERRITORY

Ladies and Gentlemen:

The Central Bank of Bolivia (BCB), in accordance with Articles 328, paragraph I, numeral 4 of the Political Constitution of the State, Article 3 of Law No. 901 of November 28, 1986, creating the Boliviano as the new unit of the monetary system, and Article 10 of Law No. 1670 of October 31, 1995, regarding the BCB, is the sole Institution with the exclusive and non-delegable function of issuing Bolivia's monetary unit, "The Boliviano," in the form of banknotes and metallic coins.

Based on the cited regulations, this communication is addressed to all Financial Intermediation Entities (FIEs), the Public Ministry and/or the Special Force Against Crime (FELCC) as applicable, and the general public, regarding the "Policy on the seizure, sequestration, and invalidation of counterfeit banknotes and coins and double-series banknotes, updated for the entire national territory," described below:

• The teller or FIE official who detects a counterfeit banknote or coin, or a double-series banknote¹, is obligated to report the incident immediately to their superior, who will verify and certify the condition of the banknote or coin (in case of any doubt or when requested by the holder of the banknote and/or coin, the Sub-Department of Analysis and Programming of Monetary Material of the BCB's Treasury Department will be consulted for certification of the condition of the banknote or coin).

1 Those are banknotes split in half and glued with adhesive tape or some other type of glue (corresponding to two authentic halves of different banknotes), which present two signatures and a single serial number or two different serial numbers, and it is verified that this banknote is assembled from two halves of different banknotes.

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia

• Once the counterfeit nature or double series of a banknote is determined, the teller or FIE official must punch at least one of its signatures and stamp the phrase "NO VALUE" on both sides of the banknote, immediately and in the presence of the holder².

• Once the counterfeit nature of a coin is determined, the teller or FIE official must write the letter "F" with an indelible marker on both sides of the coin, immediately and in the presence of the holder.

• Subsequently, the teller or FIE official must fill out the "Act of Seizure of Banknotes and Coins" attaching to it a photocopy of the seized banknote or coin and a copy of the Identity Card or passport of the holder of the counterfeit banknote or coin, or double-series banknote. This Act must be signed by the holder, the FIE official who detected the counterfeit banknote or coin, or double-series banknote, and the FIE official who verified and certified the condition of the seized material. The aforementioned Act must be prepared according to the attached format (Annex 1) and will have the status of a Sworn Declaration.

• Within a maximum period of three (3) business days, these documentary records must be sent by the FIE to the Public Ministry and/or the Special Force Against Crime (FELCC), as applicable, for the respective investigation.

• FIEs are obligated to send an Excel file (or another compatible with this) every three weeks to the email address incautacionesmm@bcb.gob.bo, according to the following format:

Date of seizure | Department where seized | Locality where seized | Currency (National/Foreign) | Serial Number | Reason for seizure (double series or counterfeit) | Type of Counterfeiting* | Holder's ID Number | Holder's Phone Number

Note: * See Annex 2

Likewise, they must send scanned copies of the Acts and their attached documents to the same email address or physically to the BCB's Treasury Department.

• On their part, the Public Ministry and/or the FELCC are the Institutions responsible for sending to the BCB every three weeks the seized banknotes and coins, in cases where they do not constitute evidence within a criminal process, for statistical purposes, laboratory tests, and their subsequent destruction. The banknotes and coins seized in Direct Action, once the corresponding criminal process is concluded, must be sent by the FELCC to the BCB, for statistical purposes, laboratory tests, and their subsequent destruction.

• Regarding the seizure of counterfeit banknotes and coins from other countries, the same procedure described for "The Boliviano" banknotes and coins must be followed, considering that the BCB uses this information only for statistical purposes.

• Any person who has inquiries regarding whether a banknote or coin is genuine or counterfeit may contact the BCB's free hotline at 800 10 1203.

External Circular SGDB No. 031/2018 dated August 8, 2018, as well as any administrative provisions contrary to this Circular, are hereby repealed.

This Circular will apply from January 15, 2021, throughout the territory of the Plurinational State of Bolivia.

Sincerely,

DIGITALLY SIGNED DOCUMENT

Teddy Espejo Terrazas TREASURY MANAGER

Rubén Gonzalo Ticona Chique GENERAL MANAGER

Validate digital signatures at: validar.firmadigital.bo RGTCH/TET/cfsc/mcfe/jogf

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia

Annex 1 Knowing the security measures of banknotes prevents you from becoming a victim of counterfeiting.

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia

Annex 2 Types of Counterfeiting

Others Corresponds to any other type of counterfeiting that does not apply to the types cited above.

Altered and/or painted These are 50 cent coins from which the zero has been erased and whose center is painted yellow to pass them off as Bs5 coins.

Separated Also known as delaminated or "sliced," these are usually larger denomination banknotes (Bs200, Bs100, and Bs50), whose front and back are separated, with one side being genuine (thus maintaining all the characteristics and security features of that side of the banknote), and the false side is printed with offset, home printers, or color photocopying, due to which the matching motif is misaligned between the front and back.

Washed These are smaller denomination banknotes that are whitened using chemical products and then reprinted in higher denominations. When reprinted on genuine paper, these banknotes show fluorescent fibers when observed under ultraviolet light, although due to the chemical washing, the shield and the denomination value in UV are no longer visible. Usually, the watermark is simulated via overprinting, so if one looks closely, two watermarks can be perceived: one inside the paper (the original) and another overprinted as "drawn."

Others These are all counterfeits that do not correspond to the above classification.

Counterfeiting without relief These are counterfeit banknotes printed on bond paper of different weight, usually via offset (flat printing), although they are also made using home printers or color photocopiers. When touched, they feel without relief; usually, the ink tone differs from the original, the letters do not present a defined texture, the matching motif is misaligned between the front and back, and the watermark is simulated (looks "drawn"). In the banknotes of the First Family of Banknotes of the Plurinational State of Bolivia, the image with movement and color-changing effect (on the back of the banknotes) does not show these effects.

Lead-made and painted These are coins minted in lead, which is why they are very easy to bend, leave a black trace (similar to what a pencil does) when a line is drawn on white paper, and do not stick to a magnet (original Boliviano coins do). In the vast majority, they correspond to Bs5 coins (in which the center is painted yellow and it is common for it to start flaking) and in exceptional cases to Bs2 coins.

Scraped or filed These are Bs1 coins that have been scraped to simulate the polygonal shape of Bs2 coins in order to deceive people.

BANKNOTES | COINS