CIRCULAR LETTER No. 3.770, OF JUNE 20, 2016

Discloses procedures for the withdrawal from circulation of national banknotes and coins deemed counterfeit or of doubtful legitimacy.

The Deputy Head of the Currency Department (Mecir), in the exercise of the attributions conferred upon him by art. 23, I, item "a", of the Internal Rules of the Central Bank of Brazil, annexed to Administrative Rule No. 84.287, of February 27, 2015, in view of the provisions of art. 4 of Resolution No. 4.492, of May 31, 2016, and art. 8 of Circular 3.798, of June 20, 2016,

R E S O L V E S :

Art. 1 In the event of identification of national banknotes and coins deemed counterfeit or of doubtful legitimacy in cash operations, financial institutions holding Bank Reserve Accounts or Settlement Accounts must:

I - retain such banknotes and coins;

II - issue a retention receipt in favor of the presenter, when the identification of the banknotes and coins referred to in the caput occurs at the time of presentation by a natural person or legal entity, keeping a copy at the institution for 2 (two) years, counted from the date of issuance, with electronic storage of the scanned retention receipt permitted;

III - register all data referring to the retention, including the identification of the presenter by the Individual Taxpayer Registry (CPF) or National Registry of Legal Entities (CNPJ), and forward them to the Central Bank of Brazil through the Catalog of Services of the National Financial System, meeting the specifications of message CIR0051; and

IV - forward to the headquarters or representations of the Currency Department, for examination, the retained national banknotes and coins, accompanied by the Forwarding Receipt (RE) document, as per Annex 1 to this Circular Letter.

§1 The procedures provided for in items II, III and IV of the caput shall not be adopted if the retained specimens have been requested by police bodies or judicial authorities.

§2 Each data submission referred to in item III shall be restricted to a single retention event and shall be linked to the CPF or CNPJ of the presenter.

§3 When the specimens are identified and retained during cash processing in the treasuries of the financial institutions referred to in the caput of this article, the CNPJ or CPF fields in message CIR0051, mentioned in § 2, need not be informed.

Art. 2 The retention receipt shall contain the date of issuance, the identification of the financial institution, the data of the bearer (name, address, telephone, identity document, CPF or CNPJ) and the information relating to the retained cash (municipality, date of retention, denomination, quantity and alphanumeric identification of the banknote).

Circular Letter No. 3.770, of June 20, 2016
Page 2 of 7

Art. 3 The institutions referred to in the caput of art. 1 shall adopt measures that ensure the payment of legitimate cash.

§ 1 In the event of withdrawal or exchange, including at self-service terminals, in which a national banknote or coin deemed counterfeit or of doubtful legitimacy has been received, the financial institution must replace the banknote or coin with another in good condition for use, at its own expense, immediately after its presentation by the client.

§ 2 The banknotes or coins deemed counterfeit or of doubtful legitimacy replaced, under the terms of the first paragraph of this article, shall be forwarded to the Central Bank of Brazil in submissions identified with the CNPJ of the financial institution.

Art. 4 The retained national banknotes and coins shall be delivered to the headquarters or representations of the Currency Department, observing the criteria of competence defined by the Central Bank of Brazil, within the deadlines provided for in articles 4 and 7 of Circular No. 3.798, of 6/20/2016.

Art. 5 For forwarding the retained national banknotes and coins to the Currency Department, the financial institutions:

I - shall register the submission number on each retained banknote, stamping it with the expression "SUSPECT OF COUNTERFEITING", according to the stamp model and delimited areas of the banknote defined in Annex 2 of this Circular Letter;

II - shall inform the numbers of the police inquiries or judicial proceedings, if there is a link between these and the object of the retention.

Art. 6 Upon receipt of the submissions of banknotes, the Currency Department shall verify the quantity of items and their respective data.

§ 1 The Currency Department may check, at the time of receipt, only the quantity of items of each submission and, subsequently, the other data of each item of the submission.

§ 2 The Forwarding Receipt (RE) shall indicate the adoption of the procedure indicated in § 1, by marking in the appropriate space.

§ 3 After checking the information referring to each item of the submission, the Currency Department may make the adjustments resulting from any distortions in the data originally registered by the financial institutions.

Art. 7 For all purposes provided for in Circular No. 3.798, of June 20, 2016, the financial institutions shall be responsible for forwarding to the Central Bank of Brazil the correct data on the retained banknotes and coins.

Art. 8 The Currency Department shall have at most 20 (twenty) consecutive days, counted from the receipt of the submission, to confirm or not the legitimacy of the national banknotes and coins received.

§1 If the examination depends on evaluation by external bodies, the deadline mentioned in the caput shall be suspended until the receipt of the result by the Currency Department.

§2 If the legitimacy is confirmed, the corresponding amount shall be credited to the bank reserve or settlement account of the financial institution, which must:

I - effect the credit of the corresponding amount due in the current account of the presenting account holder, within 24 hours after receiving the credit of the amount; or

II - communicate the availability of the amount corresponding to the non-account holder presenter, within 3 (three) business days.

Art. 9 The financial institutions may monitor the analysis procedure of each national banknote and coin submitted, as well as learn the result of the examination carried out and the credit referring to those identified as legitimate, by means of a specific message from the Catalog of Services of the National Financial System.

Art. 10 The monitoring, by the interested party (Individual and Legal Entity), of the processing of the retained specimens may be done through the Banco Central do Brasil website (www.bcb.gov.br).

Art. 11 Carta Circular No. 3.329, of 15 July 2008, is revoked.

Art. 12 This Carta Circular enters into force on the date of its publication.

Luiz Ernani Marques Accioly

This text does not replace the one published in the DOU of 22/6/2016, Section 1, p. 18, and in Sisbacen.

Carta Circular No. 3.770, of 20 June 2016
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ANNEX 1

Receipt for Forwarding Suspect Cash

Document generated by each financial institution's own system, used to physically forward to the Banco Central do Brasil banknotes and coins deemed false or of doubtful legitimacy.

Printing characteristics:

a) Number of copies: 1 (one);

b) Paper size: A4.

Description of fields:

a) ISPB – IF/Bank: are the initial 8 (eight) digits of the CNPJ of the financial institution;

b) cod-dpdncia-bc: is the acronym of the component of the Department of Currency in Circulation of the Banco Central do Brasil where the suspect cash will be delivered.

MODEL OF THE
RECEIPT FOR FORWARDING SUSPECT CASH

RECEIPT FOR FORWARDING SUSPECT CASH

FROM: <ISPB - If/Bank>
<name of the financial institution>
TO: BANCO CENTRAL DO BRASIL - MECIR / <cod-dpdncia-bc>

Remittances forwarded:

Remittance Qty Remittance Qty Remittance Qty Remittance Qty Remittance Qty Remittance Qty nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn Nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn Nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn Nnnnnnnnn nnn nnnnnnnnn nnn

Total items: n.nnn

SUMMARY

Category	Denomination	Quantity
1st family banknotes	10,00	nnn
1st family banknotes	50,00	nnn
2nd family banknotes	20,00	nnn
	TOTAL	nnn

( ) Remittance checked only for its quantity. The Banco Central do Brasil reserves the right to subsequently check all data and make the necessary adjustments (mark with “x” in the indicated space)

Date, stamp and signature of the Banco Central do Brasil employee

Name and logo of the financial institution

ANNEX 2

a) Stamp with the expression “Suspect of Counterfeiting” to be used by financial institutions:

Specifications:
Font: Arial
Diameter: 2.5 cm
Expression “SUSPECT OF”: in two lines, characters with 2 mm height Word “COUNTERFEITING”: characters with 3 mm height