Circular SGDB No. 031/2018: Procedure for Confiscation, Seizure, and Invalidation of Counterfeit Banknotes and Coins

BANCO CENTRAL DE BOLIVIA
PLURINATIONAL STATE OF BOLIVIA
EXTERNAL CIRCULAR
La Paz, August 08, 2018
SGDB No. 031/2018

FROM:
GENERAL MANAGEMENT

TO:
FINANCIAL INTERMEDIATION ENTITIES, BANKS,
HOUSING FINANCIAL ENTITIES AND COOPERATIVES

INSTRUCTIVE FOR FINANCIAL INTERMEDIATION ENTITIES AND THE GENERAL PUBLIC REGARDING CONFISCATION, SEIZURE, AND INVALIDATION OF COUNTERFEIT BANKNOTES AND COINS THROUGHOUT THE NATIONAL TERRITORY

SUBJECT:

Ladies and Gentlemen:

The Central Bank of Bolivia, in accordance with Article No. 328, numeral 4 of the Political Constitution of the State, Article 3 of Law No. 901 of November 28, 1986, and Article 10 of Law No. 1670 of October 31, 1995, is the sole Institution with the exclusive and inalienable function of issuing the monetary unit of Bolivia, which is "The Boliviano," in the form of banknotes and metal coins.

In this sense, with the competence granted by the Political Constitution of the State and the corresponding laws, it communicates to all Financial Intermediation Entities (FIEs) and the general public the new policy on confiscation, seizure, and invalidation of counterfeit banknotes and coins described below:

• The cashier or official of any FIE who detects a counterfeit banknote or coin is obligated to report the incident immediately to their superior, who will verify and certify the falsity of the banknote or coin (if necessary, recourse will be had to the Central Bank of Bolivia, through the Sub-management of Analysis and Programming of Monetary Material of the Treasury Management).

• Once the falsity of a banknote is determined, it must be immediately invalidated in the presence of its holder by stamping the text "FALSO" (FALSE) on both the front and back of the counterfeit banknote. In the case of counterfeit coins, they will be marked as such using an indelible marker with the letter "F" on both the front and back.

• Subsequently, the person who presented the counterfeit banknote or coin (holder) will sign the Confiscation and Seizure Act jointly with the official from the FIE responsible for drafting said document; a copy of the same will be provided to the holder, attaching a photocopy of the confiscated banknote or coin. The aforementioned Act will have the value 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 Prosecutor's Office or the Special Force Against Crime (FELCC), for the respective investigation, attaching additionally a photocopy of the Identity Card or passport of the person carrying the counterfeit banknote or coin (holder).

• FIEs that confiscate counterfeit banknotes and coins are obligated to send to the Central Bank of Bolivia, every three weeks, copies of the Confiscation and Seizure Acts that they have sent to the Public Prosecutor's Office or FELCC and their attached documents.

• For its part, the Public Ministry and/or FELCC are the Institutions responsible for sending to the Central Bank of Bolivia, every three weeks, the confiscated banknotes and coins, in cases where they do not constitute evidence within a criminal process, for statistical purposes, laboratory tests, and their subsequent destruction.

• Regarding the confiscation of counterfeit banknotes and coins from other countries, the same procedure described for Boliviano banknotes and coins must be followed, considering that the Central Bank of Bolivia uses this information solely for statistical purposes.

All administrative provisions contrary to this instructive are hereby rendered void, including External Circular SGDB No. 032/2014 dated August 22, 2014. This Circular will apply from August 08, 2018, throughout the territory of the Plurinational State of Bolivia.

Sincerely,

[Signature]

CC: ARCHIVE

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