Circular CAMEX 1-1022: Receipt of US Dollar Banknote Deposits

"AÑO DE LA DEFENSA DE LA VIDA, LA LIBERTAD Y LA PROPIEDAD" COMUNICACIÓN “A” 8079 01/08/2024 TO FINANCIAL ENTITIES:
Ref.: Circular
CAMEX 1-1022:
Receipt of US Dollar Banknote Deposits
___________________________________________________________________________ We address you to inform you that this Institution has implemented the possibility of receiving deposits of US dollar banknotes from financial entities at this Central Bank, until 12/31/24, as established below:
a. The arrangement of these operations must be carried out according to the following guidelines:

1. They will be arranged on the SIOPEL electronic platform, CAM1 wheel, normal value placed between 10:00 and 15:00 hours.
2. Settlement: The credit in the demand account (MEP dollars) will be made by the BCRA on the day of settlement. The deposit of the banknotes is the responsibility of the entities as provided in the Annex.
3. The operation will have no cost for the financial entities.
   b. The deposits are of a sworn declaration nature, with the presenting entity being responsible for their content, conditioned for receipt to what is established in the Annex and to their final verification by the Federal Reserve.
   c. The arrangement of the deposit entails, on the part of the financial entity, the acceptance of the conditions of the operation and that its result will be adjusted to what arises from the final verification and classification of the banknotes by the Federal Reserve, with the Central Bank proceeding, if necessary, to make the corresponding adjustments through debits and credits in the current account of the presenting entity.
   We greet you attentively.
   BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
   Alejandra I. Sanguinetti Esteban Klein
   General Manager of Payment Means General Manager of Operations
   ANNEX

Deposits in US dollar banknotes must comply with the requirements established by the Federal Reserve for the conditioning of the securities, according to the visual reference guide for deposits, available at the following page:
https://www.frbservices.org/resources/financial-services/cash/depositing-ordering/visual-referenceguide.html Below, the relevant aspects to take into account in the conditioning of the deposits are highlighted:

1. Preparation of cash deposits of dollar banknotes
   The cash deposit must be prepared for all denominations (USD 1 to USD 100) in complete thousands.
   1.a. Conditions for all denominations

• All banknotes making up a deposit must present a surface area greater than 50 percent of the banknote to receive credit, and the denomination and security measures must be identifiable.
• Banknotes must be counted by piece and their authenticity verified before depositing them.
• The unfit banknote is that which is not in conditions to continue circulating due to its physical characteristics (torn, dirty, loose, worn or disfigured); it must be included in regular deposits.
• Banknotes must be straightened and all corners and edges must be aligned.

2. Preparation of hundreds of banknotes

• All hundreds must contain 100 banknotes of the same denomination and must have a single strap around them.

• The banknotes within the hundred can be packaged regardless of direction or face.

• All clips, staples, elastic straps and excess adhesive tape from the banknotes (which cause the banknotes to stick unnecessarily) must be removed.
  Do not

• Hundreds containing sub-hundreds (rubber bands or clips that subdivide the banknotes within the hundred) are not allowed.
  B.C.R.A.
  Conditioning of banknotes and thousands for the deposit of US dollar banknotes
  Annex to
  Comm. “A”

• Banknotes identified as mutilated will not be received and must not be included in deposits with fit or unfit banknotes.
  Those are those that have been damaged to the extent that half or less of the banknote remains, or their condition is such that their value is questionable. E.g., Burned banknotes or damaged by liquids that cannot be handled without compromising their integrity.

3. Preparation of straps for the hundreds

• Each hundred must be joined by a single strap.
• The straps must be applied in the center of each hundred.
• The straps must be fixed around the hundred without the adhesive of the strap or security tape sticking unnecessarily to the banknotes inside.
• The straps must be white paper and color-coded (along the edges) to meet existing American Bankers Association (ABA) standards.
• The strap material must be between 1.00 and 1.57 inches wide with an approximate weight of 100 g/m2, being paper and not synthetic materials.
• The straps must indicate the amount of dollars in the hundred, the verification date and the initials or names of the people who verified the hundred.
• The length of the strap must be such that it wraps the hundred once with minimal overlap, so that no loose flaps remain beyond the adhesive.
• For the correct placement of bank seals, consult the “Strap Seals” section.
• The straps must be printed with colored edges, according to the color code established by ABA (it is clarified that the $ sign refers to the dollar currency):

Denomination Amount of Hundred
(100 banknotes)
Amount of Thousand
(1000 banknotes
/10 hundreds)
Color for straps
$1 Not Applicable $1,000 Blue
$2 Not Applicable $2,000 Green
$5 Not Applicable $5,000 Red
$10 Not Applicable $10,000 Yellow
$20 Not Applicable $20,000 Violet
$50 $5,000 $50,000 Brown
$100 $10,000 $100,000 Mustard

Do not

• Do not use straps with loose flaps.
• Do not use brown paper straps, i.e., those made of recycled paper, as they do not give a good image. The straps must be made of white paper to ensure that the information is captured clearly when images are taken.

4. Preparation of seals for the hundreds straps

• Each strap must be stamped on both sides with the following information:
  Institution Name: Central Bank of the Republic Argentina ABA routing number: 021083093 Four-digit endpoint number (branch number) of the depositing office: 0001 Current account number of the depositing Financial Entity
• Use black or dark ink (not red) in the stamp to ensure good quality images.
• Use a large and easy-to-read font in your stamp.
• Update ink pads frequently.
  In all denominations:
  The bank stamp on the strap must be placed on “both sides of the strap”, regardless of the portrait; however, the straps within the hundreds must be arranged so that all bank stamps face in the same direction.

5. Preparation of the thousands
   All banknotes:

• All edges of the hundreds must be aligned vertically in a single organized pile and oriented in the same direction.
• The hundreds must be joined.
• The hundreds must be secured together, to form a thousand by using elastic bands or other tensioning material/tie-downs. The tensioning material of the “thousand”:
  o Must be secured enough to remain intact during transport and handling: (1) not too tight so as to overload the banknotes and cause them to fold or wrinkle inside the thousand; or (2) not too loose when the banknotes or hundreds move or the tensioning material breaks or falls off the thousand; o Must be secured through the short side at both ends of the package (and not in subgroups of straps within the package); and o Must allow a clear view of the hundred strap of the money. All denominations:
• The hundreds making up the thousand must be arranged so that all bank stamps face in the same direction.
  Do not
• The thousand must not contain mixed denominations.
• The tensioning material of the package must not:
  − be so tight as to cause damage to the banknotes; − be placed around the long end of the package (i.e., along); and − have any residual material (such as an extra finish) that could endanger the shipping bag or the packages/straps surrounding it.

6. Deposit bags

• For deposits, only transparent plastic bags can be used.
• Plastic bags must be at least 127 microns thick or the equivalent in resistance and durability.
• Deposit bags must be securely sealed with a security seal or with obvious security tape with hidden graphics, which reveals the word “VIOLATED” upon application of solvents, thinners, freon gas, liquid nitrogen, dry ice or manual traction, so that any unauthorized access is easily detected. The bags must be free of holes and tears.
• To ensure that your deposit is correctly identified and remains secure, the following practices are also recommended:
  o In each bag, the BCRA ABA number (021083093), the name of the Institution (BCRA) and the dollar amount of the contents of each bag must be indicated with indelible ink. o If you use a high-capacity money bag for a small deposit, make sure to close the bag well so as to avoid breaking the hundreds bands or breaking the packages during transport. Do not
• A full bag must not contain more than 16 thousands.
• The bag label must not be placed inside the bag.

7. Preparation of contaminated dollar banknotes

The contaminated banknote is one that has been damaged or exposed to contaminants, poses a health or safety hazard, and cannot be processed under normal operating conditions. Institutions must obtain as much information as possible from their clients regarding the type and extent of the contamination. Before arranging a deposit operation of contaminated banknotes, they must inform the Central Bank. Banknotes can become contaminated due to:

• Prolonged exposure to water or other liquids resulting in the existence of mold. (Note: Wet currency that shows no signs of mold is not considered contaminated and must be dried and deposited under the normal deposit process.)

• Exposure to blood, urine, feces or other bodily fluids, including extraction from any body cavity, corpse or animal.

• Exposure to wastewater.

• Exposure to any chemical, liquid or foreign substance that could affect health or pose a safety risk.

• Exposure to tear gas used in ink packages.
  (Note: The ink used in ink packages is not considered a contaminant. Banknotes stained only with ink must be deposited normally.)
  7.1. Procedures for depositing contaminated banknotes

• Separate them from normal deposits (fit and unfit).

• If the contaminated banknotes are old US dollar banknotes or high denomination banknotes ($500 and above), they must be packaged separately.

• They must be prepared by denomination, in hundreds (100 banknotes) and in thousands of 10 hundreds.

• Elastic bands must be used to secure multiple complete hundreds and, unlike the normal deposit procedure, they must be placed around the middle of the thousand.
  In case of being:

• Packages of 50 banknotes or less, of a single denomination must be arranged in a fan shape, allowing more than 50 percent of each banknote to be clearly visible through the packaging material. They must be fastened to secure their presentation in fan shape, before placing them in the bag.

• Partial packages containing between 51 and 99 banknotes of a single denomination must be held with a paper strap. The strap must indicate the quantity of banknotes and the amount in dollars.

• Contaminated banknotes must be double-bagged, and the bags must be large enough to allow movement of the banknotes inside the bags for initial visual inspection.
  o The inner bag must be a transparent, strong, tamper-evident plastic bag, acquired by your institution for depositing at the Federal Reserve.
  Do not use resalable style bags bought at the store, for the inner bag. o The outer bag must also be a transparent, strong, tamper-evident plastic bag, acquired by your institution for depositing at the Federal Reserve.

• The word “CONTAMINATED” must be written with a permanent marker and large letters on the outside of the outer bag. Any external printing on the bags must not inhibit the view of the contents of the bag.
  Do not

• Do not include any foreign element inside or between the inner and outer bags. Foreign items include clips, deposit documents, bag labels, items that cause banknote inking. Your deposit will be returned if it presents foreign elements.

• Double bagging must not inhibit the view of the contents.

• In the event that adequate packaging requirements are not met, the Federal Reserve reserves the right to return the deposit.