Circular No. 01/EMC/2015, July 27 – Procedures for Retention and Remittance of Currency with Apparent or Suspected Falsity or Counterfeiting

Bank of Mozambique
Administration

DEPARTMENT OF ISSUANCE, MARKETS AND EXCHANGE Circular No. 01 /EMC/2015 Maputo, July 27, 2015

SUBJECT: PROCEDURES FOR THE RETENTION AND REMITTANCE OF CURRENCY WITH APPARENT OR SUSPECTED FALSITY OR COUNTERFEITING

Circular No. 5/GBM/2015, dated July 13, approved the Regulation on the retention and remittance of currency with apparent or suspected falsity or counterfeiting. As it is necessary to establish the retention and remittance procedures for currency, to be observed by credit institutions, financial companies, and other entities that operate professionally with cash, the Bank of Mozambique determines:

Article 1
Issuance of the Retention Receipt

1. The currency retention receipt, provided for in Article 7 of the aforementioned Circular, must be issued and completed in quadruplicate, intended for:

   a) The original, for the credit institution, financial company, or entity that performs the retention;

   b) The duplicate, for the presenter;

   c) The triplicate, for the Bank of Mozambique;

   d) The quadruplicate, for the competent Authority for legal procedures subsequent to the confirmation of the currency's falsity or counterfeiting.

2. The retention receipt must be issued on the letterhead of the institution or entity performing the currency retention, observing, regarding its content, the model in Annex 1 to this Circular, which is an integral part thereof.

Article 2
Daily Verification of Currency Authenticity

Without prejudice to the verification of currency authenticity in the presence of the customer, the institutions and entities addressed by this Circular must thoroughly re-verify them whenever they proceed with the closing of daily transactions.

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Bank of Mozambique
Administration

Article 3
Accounting Treatment

1. Currency retained due to suspected falsity or counterfeiting must be accounted for in off-balance sheet accounts.

2. When false or counterfeit currency is detected during cash closing and the presenter cannot be identified, its corresponding value must be considered as a cash difference.

Article 4
Remittance of Retained Currency to the Bank of Mozambique

1. The institutions and entities addressed by this Circular must remit to the Bank of Mozambique the currency retained due to suspected falsity or counterfeiting, as soon as possible.

2. The institutions and entities referred to in the preceding paragraph must also remit to the Bank of Mozambique, along with the retained currency, the following documents and information:

   a. Triplicate of the retention receipt for banknotes and/or coins;

   b. Copy of the presenter's identification document;

   c. Information regarding the circumstances of the currency retention, for which purpose they must complete the table in Annex 2 to this Circular, which is an integral part thereof.

Article 5
Communication to Competent Authorities

The communication to competent authorities regarding the detection of false or counterfeit currency, stipulated in Article 11 of the aforementioned Circular, must be accompanied by the quadruplicate of the retention receipt and information regarding the circumstances of the currency retention, in the model provided in Annex 2.

Article 6
Clarification of Doubts

Doubts arising from the interpretation and application of this Circular must be submitted to the Department of Issuance and Treasury.

BANK OF MOZAMBIQUE
Department of Markets, Exchange and Branches
(Signature)
Joana Jacinto David Matsombe
(Administrator)

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Bank of Mozambique
Administration

ANNEX 1

RETENTION RECEIPT FOR BANKNOTES AND COINS SUSPECTED OF FALSITY OR COUNTERFEITING

1. IDENTIFICATION OF THE INSTITUTION RESPONSIBLE FOR RETENTION

Institution Name: *................................................................................................, Phone ...............................

Location of Retention:..........................................................................................................................................................

DATE: ....../....../ 20.......

2. IDENTIFICATION OF THE PRESENTER/DEPOSITOR

Name........................................................................, holder of ID/Passport/DIRE No. ..............................., issued on ............................... at ......../....../......., ............................... (occupation), with general residence in ..............................., Street/Ave................................................, Phone No. ..............................., and professional address in ........................................................................................................

3. RETENTION ACT

We have received from Mr./Ms........................................................................................................, for the purpose of ........................................................................................ (description of the intended type of operation, namely, deposit, exchange, change/counter-change or other), the amount of........................................................................, according to the description below, which, due to suspected falsity/counterfeiting, is retained to be sent to the Bank of Mozambique, to proceed with the analysis of its respective authenticity.

Currency/Banknote	Denomination	Series and Number	Quantity

The Customer	The Manager

• Credit institution or financial company that retains banknotes and coins.

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Bank of Mozambique
Administration

ANNEX 2

LIST OF BANKNOTES AND COINS

Banknote/Coin	Denomination	Series and Number	Quantity	Department/Branch	Observations

Other Information

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Circumstances of the retention of banknotes and coins, for example, deposit and customer claim.

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