Circular No. 3538 — Procedures for the Withdrawal from Circulation of Banknotes Damaged by Suspected Anti-Theft Devices

CIRCULAR NO. 003538

Dispenses with the procedures for the withdrawal from circulation of damaged banknotes resulting from the alleged activation of anti-theft devices.

The Collegiate Board of the Central Bank of Brazil, in an extraordinary session held on May 31, 2011, based on Article 10, item II, of Law No. 4,595, of December 31, 1964, and Resolution No. 3,981, of June 1, 2011,

RESOLVES:

Article 1. This Circular provides for the procedures for the withdrawal from circulation of banknotes allegedly damaged by anti-theft devices and for the procedures to be adopted by financial institutions and the public for the exchange of these banknotes.

Article 2. For the purposes of this Circular, an anti-theft device is considered to be a device that, when activated, causes alterations in the characteristics of banknotes, damaging them and rendering them unfit for circulation, according to the following requirements:

I - allow for the assurance of the recognition of the legitimacy of the banknotes;

II - allow for the assurance that the damage was caused by anti-theft equipment;

III - ensure that the damages caused are resistant to the action of chemical agents or other agents that could suppress or reduce the evidence of the damage.

Sole Paragraph. It is incumbent upon the institutions using these devices to prove to the Central Bank of Brazil compliance with the requirements described in the caput, through the presentation of technical specifications and certifications and tests prepared by a certified entity authorized to perform them.

Article 3. Financial institutions holding Reserve Accounts or Settlement Accounts, upon identifying, in payment, deposit, or cash exchange operations, a national banknote suspected of having been damaged by the activation of an anti-theft device, shall:

I - accept and retain such banknote;

II - request identification of the bearer via official identity document and proof of registration in the Individual Taxpayer Registry (CPF) of the Ministry of Finance;

III - fill out a form with the bearer's data, including duly proven address;

IV - provide the bearer of the banknote with a retention receipt, keeping a copy in their possession for at least 2 (two) years;

V - register, in their own computerized system, the data of the retained banknote and send it to the Central Bank of Brazil, through a specific message of the Catalog of Messages and Files of the Brazilian Payments System; and

VI - forward the retained banknote to the Central Bank of Brazil for analysis, separately from other banknotes normally forwarded in the process of cleansing the circulating medium, observing the areas of operation of their regional representations, as defined in specific regulations.

§ 1st. Financial institutions, upon request, must inform the bearer about the progress of the analysis process of the retained banknote.

§ 2nd. The provisions of this article apply to various modalities of cash deposits and payments, including those carried out using envelopes at self-service terminals (ATMs).

§ 3rd. Financial institutions are exempted from adopting the procedures referred to in items I to VI if the retained banknote has been requisitioned by police agencies or judicial authorities.

Article 4. The retained banknote shall be delivered to the Central Bank of Brazil within the following deadlines:

I - up to 20 (twenty) calendar days, for retention occurring in places where the Central Bank of Brazil has representation; and

II - up to 30 (thirty) calendar days, for retention occurring in other localities of the national territory.

Article 5. The Central Bank of Brazil will keep damaged banknotes in custody and will inform the competent authorities when the result of the respective analysis indicates that the damage was caused by an anti-theft device.

Article 6. Financial institutions, when using anti-theft devices that have caused damage to banknotes due to accidental activation, violation, or attempted violation, shall forward the observed damaged specimens observing the following procedures:

I - banknotes that appear whole and in conditions that allow for the formation of hundreds and their processing in selection and counting equipment shall be:

a) packaged in identified volumes separated from others;

b) deposited with the custodian in the condition of torn, according to current regulations;

II - banknotes that appear physically adhered to one another, wet, fragmented, or in conditions that do not allow processing by selection and counting equipment, shall be forwarded for examination at the Central Bank of Brazil, separated from others, observing the areas of operation of their regional representations, as defined in specific regulations.

Article 7. It is incumbent upon financial institutions to maintain records of occurrences that trigger the activation of anti-theft devices.

Article 8. Institutions that do not hold Reserve Accounts or Settlement Accounts shall forward damaged cash to financial institutions with which they maintain a relationship.

Article 9. In the case of accidental activation of the anti-theft device or of a frustrated attempt at theft or robbery, financial institutions shall reimburse the Central Bank of Brazil for the analysis and replacement services of the damaged banknotes, observing the following parameters:

I - cost of banknote analysis;

II - cost of manufacturing and distribution of the banknote to be replaced.

Article 10. After analyzing the presented banknote, the Central Bank of Brazil will inform the sending financial institution of the result.

Article 11. Financial institutions are responsible for maintaining records that guarantee the correspondence between the retained banknote and the identification of the bearer.

Sole Paragraph. After receiving information from the Central Bank of Brazil regarding the conclusions of this autarchy concerning the retained banknote, financial institutions shall:

I - reimburse the bearer, in the event that it is concluded that the banknote was accidentally damaged;

II - communicate to the bearer that the banknote has been recognized as the product of criminal action and is available to the competent authorities for the adoption of legal measures necessary for investigation and criminal prosecution, as well as that it will not be reimbursed.

Article 12. Non-compliance with the provisions of this Circular will subject financial institutions and their administrators to the penalties provided for in Article 44 of Law No. 4,595, of December 31, 1964.

Article 13. The Department of Circulating Medium is authorized to issue complementary norms for the execution of this Circular.

Article 14. This Circular enters into force on the date of its publication.

Brasília, June 1, 2011.

Altamir Lopes
Director of Administration