Deposit of Legal Reserve in US Dollars for Sending to the Federal Reserve Bank

EXTERNAL CIRCULAR
La Paz, February 22, 2024
CIEX N° 7/2024
FROM: GENERAL MANAGEMENT
TREASURY MANAGEMENT
INTERNATIONAL OPERATIONS MANAGEMENT
TO: FINANCIAL INTERMEDIATION ENTITIES
SUBJECT: DEPOSIT OF LEGAL RESERVE IN US DOLLARS FOR SENDING TO THE FEDERAL RESERVE BANK Sirs/Madams:
As of this date, Financial Intermediation Entities (EIFs) that make deposits of packages of US dollar (USD) cash banknotes at the Central Bank of Bolivia (BCB) for legal reserve for sending to the Federal Reserve Bank (FRB), must comply with the provisions of the “Cash Services Procedures Manual”, issued by the FRB, depositing them separated into Non-Contaminated and Contaminated. The criteria for classifying packages of USD banknotes as “contaminated” are the following:

• Prolonged exposure to water or other liquids, resulting in the existence of mold.
• Exposure to blood, urine, feces or any other bodily fluid, including secretion from any body cavity, corpse or animal.
• Exposure to sewage.
• Exposure to any chemical, liquid or foreign substance that may pose a health or safety risk.
  These characteristics must be clearly differentiable and perceptible in each of the banknotes classified as “contaminated”, as shown in the following example graphic:
  Image of “contaminated” USD 100 banknote
  Those packages of USD banknotes that do not meet the criteria detailed above will be classified as “Non-Contaminated”.
  Depositing EIFs must prepare the USD packages according to the following characteristics:

1. Presentation of banknotes
   For “Non-Contaminated” and “Contaminated” banknotes, the following must be considered:

• Banknotes must present the portrait side facing forward.
• The orientation of the portrait must be the same.
• Banknotes must be presented unfolded.
• Edges and corners must be aligned.
• Mutilated banknotes will not be accepted; that is: banknotes damaged to the extent that only half or less of the banknote remains or, alternatively, banknotes whose condition is such that their value is questionable and expert valuation is required before any exchange takes place.

2. Presentation of straps
   For straps of “Non-Contaminated” and “Contaminated” banknotes, the following must be considered:

• Each strap must contain one hundred (100) banknotes of the same denomination.
• Straps must be printed on white paper with colored edges (mustard for USD 100 banknotes, brown for USD 50 banknotes, lilac for USD 20 banknotes, yellow for USD 10 banknotes, red for USD 5 banknotes, green for USD 2 banknotes and light blue for USD 1 banknotes), to identify the denomination and the amount in USD.
• The EIF acronym must be printed on one side and at the ends of the strap.
• The place and date of package formation must be located on each strap, in a space that is visible through the shrink plastic (heat-sealed).
• The cashier's stamp must be located in the center of the strap.
• The ink for acronyms and stamps must be black.
• Straps must not contain staples, clips or adhesive tape.
• Each strap must be joined on the reverse of the portrait.
  In order to guarantee the integrity of all bundles of banknotes to be sent to the FRB, it is essential that EIFs have packaging straps with a grammage of at least one hundred (100) grams per square meter.

3. Presentation of packages
   For packages of “Non-Contaminated” and “Contaminated” banknotes, the following must be taken into account:

• Each package must contain one thousand (1,000) banknotes of the same denomination, packed in ten (10) straps (one hundred banknotes per strap).
• Packages must not contain clips, staples or adhesive tape.
• Packages must be heat-sealed, showing the EIF logo on the strap.
• “Non-Contaminated” USD packages will be secured with two (2) elastic bands, located on the sides of each package.
• “Contaminated” USD packages will be secured with one elastic band in the center of each package. The EIF that has contaminated USD packages must fill out the “Contaminated Currency Deposit Details” form.
  USD banknote packages must be prepared and presented by the EIF following the requirements established in the “Cash Services Procedures Manual”, issued by the FRB, described above. The BCB will not be responsible for the preparation of the aforementioned monetary material (MM) nor for its prior validation for sending to the FRB. The BCB will only be responsible for the transport of this MM to the FRB. If there are observations from the FRB to the remittance sent, due to non-compliance with the provisions of the “Cash Services Procedures Manual”, issued by the FRB, and which result in the return of this remittance, or if any anomaly is detected such as counterfeit banknotes, missing banknotes, among others; the costs or charges generated will be assumed by the EIF identified as the depositor of the observed packages and will be debited/credited from/to the current and reserve account or reserve account of the respective EIF. Likewise, depositing EIFs must declare that the deposits of USD cash banknote packages at the BCB for legal reserve come from legitimate transactions in which Due Diligence measures were applied in the prevention and mitigation of risks of Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction, in accordance with the regulations issued by the FIU. For the deposit of USD cash banknote packages at the BCB for legal reserve for sending to the FRB for foreign transactions for imports:
• The EIF must present at the time of deposit the sworn declaration according to Annex 1, which must be signed by the authorized signatories at the BCB for each entity.
• The BCB may reject these deposits within the framework established by the FRB.
• On the next business day after the availability of funds is confirmed by the FRB, the EIF may request the transfer of funds abroad via the BCB's Foreign Exchange Operations System.
  For any queries, please contact the International Operations Management or Treasury Management of the BCB at telephones 2409090 internal 3001, 3002, 3003, 3004 and 3007. External Circular CIEX N° 31/2023 of July 26, 2023, is hereby rendered ineffective. Sincerely. DIGITALLY SIGNED DOCUMENT Claudia Fabiola Soruco Carballo INTERNATIONAL OPERATIONS MANAGER Sergio Callisaya Avila TREASURY MANAGER Rubén Gonzalo Ticona Chique GENERAL MANAGER Validate digital signatures at: validar.firmadigital.bo RGTCH/SCA/CFSC/sta/rbra

Annex 1
Financial Entity:
Place and Date:
N°
Date of importer's request
Natural/Legal Person
Name of Person/Company
Identity Card /Tax Identification Number
Country of Origin of the import
Description of merchandise
Amount deposited by the importer
0

• ADD THE LINES YOU REQUIRE
  Compliance with ASFI/808/2024 Circular
  Authorized Signature 1 Authorized Signature 2
  SWORN DECLARATION - FOREIGN TRANSACTIONS FOR IMPORTS I certify that the amount deposited of USD cash banknote packages comes from legitimate transactions in which Due Diligence measures were applied in the prevention and mitigation of risks of Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction, in accordance with the regulations issued by the FIU.

1. Declare all cash deposit operations for imports for amounts greater than USD 1,000, requested by your clients as of the declaration date.*
   TOTAL