Circular SGDB No. 032/2014 on Confiscation, Seizure, and Invalidation of Counterfeit Banknotes and Coins

B.C.B. / DGD-VUC
2014 SEP -2 PM 3: 17
CORRESPONDENCE
GENERAL
SENT OUT

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, August 22, 2014
SGDB No. 032/2014

FROM: GENERAL MANAGEMENT
TO: FINANCIAL ENTITIES (BANKS, FUNDS, MUTUALS, AND COOPERATIVES) SUBJECT: INSTRUCTIONS FOR BANKING AND FINANCIAL INSTITUTIONS AND THE GENERAL PUBLIC REGARDING THE CONFISCATION, SEIZURE, AND INVALIDATION OF COUNTERFEIT BANKNOTES AND COINS THROUGHOUT THE NATIONAL TERRITORY.

Ladies and Gentlemen:

In accordance with Article 3 of Law No. 901 of November 28, 1986, and Article 10 of Law No. 1670 of October 31, 1995, the Central Bank of Bolivia is the sole institution with the exclusive and non-delegable function of issuing Bolivia's monetary unit, "The Boliviano," in the form of banknotes and metallic coins.

In this regard, with the competence granted by the Law, it informs all Financial Entities and the general public of the new policy on the confiscation, seizure, and invalidation of counterfeit banknotes as described below:

• The cashier or official of any Financial Entity 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, Treasury Sub-Management for the respective certification). Once the falsity is determined, the item must be invalidated immediately in the presence of its holder.
• Subsequently, the person who presented the counterfeit banknote or coin will jointly sign the Act of Confiscation and Seizure with the responsible official of the Financial Entity who prepared it, and a copy of said document attached to a photocopy of the banknote or coin subject to confiscation will be provided to them. The aforementioned Act will have the value of a Sworn Declaration. Within a maximum of three business days following, these records must be sent by the Financial Entity to the Public Ministry or the Special Force Against Crime (FELCC) for the respective investigation, along with a photocopy of the Identity Card or passport of the person holding the counterfeit banknote or coin.

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• Furthermore, entities that confiscate counterfeit banknotes and coins are obligated to send copies of the Acts of Confiscation and Seizure that they have sent to the Public Ministry or FELCC to the Central Bank of Bolivia every three weeks, so that the Issuing Entity has all pertinent information and can validate the counterfeit banknotes and coins that will be sent by the FELCC.
• The Public Ministry and/or the FELCC are the institutions responsible for sending the confiscated counterfeit banknotes and coins to the Central Bank of Bolivia every three weeks for statistical purposes and laboratory tests.
• Regarding the confiscation of counterfeit banknotes and coins from other countries, in these cases, the same procedure described for national banknotes and coins must be followed, considering that the Central Bank of Bolivia uses this information only for statistical purposes.

All administrative provisions contrary to this instruction are hereby repealed, and this instruction shall apply from September 8, 2014, throughout the territory of the Plurinational State of Bolivia.

Sincerely,

[Signature]
WPP/GCL/MMS/VFQ/IFD/frmq

Ayacucho y Mercado • Tel:(591-2) 2409090 • Casilla: 3118 www.bcb.gob.bo • bcb@bcb.gob.bo • La Paz-Bolivia