REPEALED

in accordance with resolution of the Board of the National Bank of the Kyrgyz Republic

of 28 December 2010 No. 95/4

Registered with the Ministry of Justice of the Kyrgyz Republic

9 April 2001. Registration number 59

Approved

by resolution of the Board

of the National Bank

of the Kyrgyz Republic

of 20 March 2001 No. 6/9

INSTRUCTION

on handling suspicious banknotes

of the national currency

Chapter 1

General provisions

1.1. This Instruction defines the main goals, tasks and procedure for action of cashiers of banking institutions, pawnshops, exchange points and exchange bureaus (hereinafter referred to as credit institutions) upon detection of suspicious banknotes of the national currency (hereinafter referred to as suspicious banknotes) during settlement and cash operations with individuals and legal entities on the territory of the Kyrgyz Republic.

1.2. In accordance with this Instruction, the actions of employees of credit institutions must be aimed at creating an effective system for protecting the cash money circulation of the Kyrgyz Republic from counterfeiting, implementing effective measures to identify counterfeit banknotes and preventing their further distribution.

1.3. Banknotes whose design and security features do not correspond to the design and security features of the "ULGU" samples are considered suspicious.

1.4. Suspicious banknotes are recognized as counterfeit if, as a result of an examination, it is established that their technical specifications do not correspond to the technical specifications of genuine banknotes.

1.5. Examination of suspicious banknotes is conducted by the National Bank of the Kyrgyz Republic (hereinafter referred to as the NBKR); no fee is charged for conducting the examination of suspicious banknotes.

1.6. Interaction of the NBKR with the internal affairs and national security bodies of the Kyrgyz Republic upon detection of counterfeit banknotes is regulated by the terms of the "Agreement on Cooperation and Joint Activity of the NBKR, MVD and SNB in the Field of Combating Counterfeiting".

Chapter 2

Actions of cashiers of credit institutions

upon detection of suspicious banknotes

2.1. Cash workers of credit institutions must be provided with detectors and devices for checking the authenticity of banknotes, as well as booklets and posters about the security features of the national currencies of those countries with whose currency operations are conducted.

2.2. In all cases of detection of suspicious banknotes, namely:

• when accepting cash from individuals and legal entities (hereinafter referred to as the client);

• when detecting suspicious banknotes among cash accepted by cashiers from clients;

• when conducting an audit of the cash desk of credit institutions, cashiers or other persons who discovered a suspicious banknote are obliged to take measures to seize it in accordance with the requirements of this Instruction.

2.3. In the event of detection of suspicious banknotes when accepting cash from a client, the cashier must give the client a form of the Application for conducting an examination (Appendix 1) to fill out. If the client refuses to fill out the Application, the cashier must fill it out himself, indicating in detail the circumstances of the detection of suspicious banknotes. All items of the Application must be filled out clearly and legibly.

2.4. The client is issued a Receipt for the amount of suspicious banknotes accepted for examination, indicating their denomination, quantity and serial number (Appendix 2).

2.5. In the event of detection of suspicious banknotes when recounting cash in credit institutions, the cashier is obliged to fill out the Application for conducting an examination in his own name and, together with the banknote, send it within one working day to the Expert Division of the NBKR (or the regional departments of the NBKR depending on location) or to the nearest Department of Internal Affairs.

2.6. The cashier is obliged to immediately inform his management or another authorized person of the fact of detection of suspicious banknotes.

2.7. All counterfeit banknotes detected by cashiers of credit institutions during settlement and cash operations must be sent within one working day to the Expert Division of the NBKR (or to the regional departments of the NBKR depending on location) or to the nearest Department of Internal Affairs together with a cover letter and the Application for conducting an examination.

2.8. In each case of detection of suspicious banknotes, credit institutions are obliged to immediately report to the Expert Division of the NBKR by telephone their serial numbers, denomination, quantity and other features thereof.

2.9. Upon detection of suspicious banknotes during recounting and sorting of cash in the NBKR (or in the regional department of the NBKR), it is necessary to act in accordance with the regulatory documents and instructional materials of the NBKR.

2.10. Credit institutions are obliged to complete all actions related to suspicious banknotes and notify the client thereof within a period not exceeding 10 working days.

Chapter 3

Procedure for conducting examination

of suspicious banknotes in the NBKR

3.1. Verification of the authenticity of suspicious banknotes is conducted by the Expert Division of the NBKR or the Money Department of the regional departments of the NBKR.

3.2. Based on the results of the examination, a Protocol is filled out (Appendix 3) and the expert conclusion is entered into the received Application for conducting an examination. The Head of the Expert Division (or the Head of the Money Department of the regional departments of the NBKR) checks the correctness of filling out the documents and certifies with his signature the Protocol and the expert conclusion on the Application form.

3.3. The Expert Division of the NBKR and the regional departments of the NBKR are obliged to finish all procedures related to the examination of suspicious banknotes and report the results of the examination to the place of detection of the suspicious banknotes within a period not exceeding 5 working days.

3.4. Centralized accounting of counterfeit banknotes detected in the banking system of the republic is maintained by the Expert Division of the NBKR (Appendix 4).

3.5. Quarterly, by the 5th day of the month following the reporting month, the regional departments of the NBKR are obliged to send to the Expert Division of the NBKR information on counterfeit banknotes detected in the given region according to the established form (Appendix 5).

Chapter 4

Actions with suspicious banknotes

after the examination

4.1. If, based on the results of the examination of a suspicious banknote, the banknote is established to be genuine:

• in the case where the suspicious banknotes were received from individuals or legal entities through the Circulation Cash Desks of NBKR institutions, the expert specialist sends the Application with the expert conclusion and the banknote to the Circulation Cash Desk. The cashier familiarizes the client with the expert conclusion, of which the client makes a note in the Application with his signature, and the cashier issues to the client the amount indicated in the expert conclusion. The Application remains in the cash documents of the Circulation Cash Desk; at the client's request, a copy of the Application may be given to him. The client must return to the cashier the Receipt that was issued when the suspicious banknote was accepted for examination;

• in the case where the suspicious banknotes were received for examination bypassing the Circulation Cash Desks of the NBKR, the expert specialist, on the basis of the expert conclusion, fills out an announcement for a cash deposit and informs the bank of the crediting to its account of the indicated amount. Then he sends to the head office of the bank and to the applicant a cover letter with the attached Application with the expert conclusion. A copy of the Application remains in the documents of the NBKR.

4.2. If, based on the results of the examination, the suspicious banknote is established to be counterfeit, the banknote is stamped "COUNTERFEIT".

4.2.1. In the case where the suspicious banknotes were received from individuals or legal entities through the Circulation Cash Desks of NBKR institutions, the expert specialist sends the Application with the expert conclusion to the Circulation Cash Desk. The cashier familiarizes the client with the expert conclusion, of which the client makes a note in the Application with his signature. The client must return to the cashier the receipt issued when the suspicious banknotes were accepted for examination. The Application remains in the cash documents of the Circulation Cash Desk. At the client's request, a copy of the Application may be given to him.

4.2.2. In the case where the suspicious banknotes were received for examination bypassing the Circulation Cash Desks of the NBKR, the expert specialist sends to the commercial bank the Application with the expert conclusion together with a cover letter. A copy of the Application remains in the documents of the NBKR.

4.3. A counterfeit banknote is not returned to the client and is not subject to exchange.

4.4. Material liability for counterfeit banknotes detected:

• when depositing cash to credit institutions is borne by the client; the amount of counterfeit banknotes is not counted in the amount of deposited money indicated in the announcement; and the bank cashier is obliged to act in accordance with subparagraphs 2.3-2.10 of this Instruction;

• when recounting or sorting cash in a bundle formed by cashiers of credit institutions is borne by the credit institution in whose bundle the counterfeit banknotes were detected.

4.5. Transfer of counterfeit banknotes to MVD institutions for conducting an investigation is carried out at the place of their detection by experts of the Expert Division of the NBKR or regional departments of the NBKR within one working day after the examination.

4.6. Transfer of counterfeit banknotes to MVD institutions for conducting an investigation is carried out according to the Act of acceptance-transfer of counterfeit banknotes (Appendix 6). The Act is drawn up in 2 copies, one of which, together with the counterfeit banknotes, a copy of the Application and the Protocol, is transferred to the nearest Department of Internal Affairs, and the other remains in the documents of the NBKR.

4.7. The Expert Division of the UDN, in the case of detection of new varieties of counterfeit banknotes, immediately informs the population of the republic thereof.

Cash Management Department

Appendix 1

to the Instruction "On handling

suspicious banknotes

of the national currency"

---

(name of organization and address)

---

_

(full name of the person depositing the banknote for examination)

---

_

(passport data and place of registration)

APPLICATION No. _______

I request that the following suspicious banknotes be accepted for examination:

---

Denomination	Year of issue	Serial number	Circumstance of detection	Note
1	2	3	4	5

---

"_" ______ 200 Signature ______

(full name and signature of the applicant)

Expert conclusion No. ______ of "_" ______ 200

---

(name of the NBKR institution that conducted the examination)

Examination conducted by ______

---

(full name and signature of the person who conducted the examination)

Head of the Expert Division of the UDN

(or Money Department of the regional department of the NBKR) ______

(full name and signature)

I have familiarized myself with the expert conclusion ______

(full name of the client and signature)

(Please fill out all items carefully and legibly!)

Appendix 2

to the Instruction "On handling

suspicious banknotes

of the national currency"

RECEIPT

To application No. ______ of "_" ______ 200

Accepted for examination suspicious banknotes in the amount of ____ pieces,

for the sum of ______ som ______

tyiyn,

(in figures and words)

Serial numbers of banknotes: ______

---

_

Full name, position and signature of the person who accepted the banknotes ______

---

_

(name of institution)

"_" ______ 200

(Please return the receipt after familiarizing yourself with the NBKR expert conclusion!)

Appendix 3

to the Instruction "On handling

suspicious banknotes

of the national currency"

---

(name of the NBKR institution that conducted the examination)

PROTOCOL

of examination No. ______

of "_" ______ 200

The suspicious banknote was received from ______

(name of organization

---

_

and address, or full name of client, registration or home address,

---

_

passport No. and series)

As a result of the examination, the following was established:

1. Denomination.

2. Year of issue.

3. Serial number.

4. Quantity.

5. Amount.

6. Size of the banknote received for examination.

7. Size of the banknote according to the technical specification.

8. Characteristics of the paper (behavior under UV light).

9. Watermark.

10. Characteristics of fibers (behavior under UV light).

11. Security thread.

12. Microtext.

13. Hidden image.

14. See-through register.

15. Images detected under UV light.

16. Characteristics of the ink.

17. Presence of physical-chemical protection:

• foil;

• hologram.

18. Magnetic ink.

19. Additional information (features):

Conclusions:

---

---

_

---

(full name and signature of the person who conducted the examination)

Head of the Expert Division of the UDN

or Money Department of the regional department of the NBKR ______

(full name and signature)

Appendix 4

to the Instruction "On handling

suspicious banknotes

of the national currency"

Database of counterfeit banknotes

received by the NBKR

---

No.	Date of receipt	Denomination	Year of issue	Quantity	Serial number	No. of NBKR protocol and date of examination	Method of manufacture of counterfeit (coding of counterfeits)	Sources of receipt, indicate: - full name of individual, address; - legal entity, address; - No. of the recount act or sorting group of the NBKR, full name of the NBKR cashier who discovered the counterfeit, as well as full name of the cashier of the commercial bank in whose bundle the counterfeit was discovered	Date of referral to MVD	Note
1	2	3	4	5	6	7	8	9	10	11

---

Appendix 5

to the Instruction "On handling

suspicious banknotes

of the national currency"

REPORT

on detected counterfeit banknotes

for the periods from ____ to ____ 200__

---

No.	Date of receipt	Denomination	Year of issue	Quantity	Serial number	No. of NBKR protocol and date of examination	Method of manufacture of counterfeit (coding of counterfeits)	Sources of receipt, indicate: - full name of individual, address; - legal entity, address; - No. of the recount act or sorting group of the NBKR, full name of the NBKR cashier who discovered the counterfeit, as well as full name of the cashier of the commercial bank in whose bundle the counterfeit was discovered	Date of referral to MVD	Note
1	2	3	4	5	6	7	8	9	10	11

---

Head of the Money Department ______

(full name and signature)

Specialist-expert ______

(full name and signature)

Appendix 6

to the Instruction "On handling

suspicious banknotes

of the national currency"

ACT No. _______

of acceptance-transfer of counterfeit banknotes

of "_" ______ 200

---

(name of NBKR institution)

represented by ______

(position, full name)

carried out the transfer to ______

(law enforcement bodies)

represented by ______

(position, full name)

of counterfeit banknotes, according to the following inventory:

---

Denomination	Year of issue	Serial number	Quantity	Method of manufacture of counterfeit	Source of receipt	No. of NBKR protocol	Note
1	2	3	4	5	6	7	8

---

Appendices:

counterfeit banknotes - ______ pcs.;

copies of the application - ______ pages;

copies of the protocol - ______ pages.

Representative of the NBKR ______

(full name and signature)

Representative of the MVD ______

(full name and signature)

Service identification card

(Please fill out all items carefully and legibly!)