Mechanism for Compensating Damaged Cash Marked with Security Inks

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank Headquarters

Banking Policies Department
Ref: 41025174
Date: 12/04/1441 AH
Attachments: 5 pages

Circular

To: Respected Sirs,
Peace, mercy, and blessings of Allah be upon you, Subject: Mechanism for Compensating Damaged Cash Marked with Security Inks.

In continuation of the Bank's instructions communicated under Circular No. 53506/198 dated 13/04/1440 AH regarding the obligation of cash-in-transit companies, banks, financial institutions, and money changers to use dedicated security containers for cash transfer during receipt and delivery from branches, cash centers, money transfer offices, money changers, and the retail sector. And in line with the Bank's keenness and interest in encouraging all that contributes to developing the financial sector and enhancing security and safety measures.

Accordingly, we attach to you the controls and procedures for compensating Saudi currency marked with security inks resulting from technical and human errors, along with the relevant forms.

For review and implementation effective from its date. The Bank will conduct field visits to verify compliance with these instructions.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision
On behalf of / Hashem bin Othman Al-Aqeel
Deputy Governor for Financial Sector Development

Distribution Scope:

• Banks and financial institutions operating in the Kingdom.
• Money changing institutions and companies operating in the Kingdom.
• Licensed cash-in-transit companies.

P.O. Box 2992, Riyadh 11169, Telegram Address: Markazi, Telex: 404400, Tel: 4633000, Fax: 4662414

Controls and Procedures for Compensating Saudi Currency Marked with Security Inks Resulting from Technical and Human Errors

December 2019

Controls and Procedures for Compensating Saudi Currency Marked with Security Inks Resulting from Technical and Human Errors:

1. Beneficiary entities must ensure that security cash containers comply with the approved technical specifications and standards set forth in the Bank's Circular No. 53506/198 dated 13/04/1440 AH, which mandates cash-in-transit companies, banks, financial institutions, and money changers to use dedicated security containers for cash transfer during receipt and delivery from branches, cash centers, money transfer offices, money changers, and the retail sector.
2. Trading or circulating banknotes marked with security inks is strictly prohibited.
3. Banknotes marked with security inks must be submitted directly to one of the Bank's branches for evaluation and completion of compensation procedures, after filling out the Compensation Request Form and the Declaration below.
4. Ensure that cash counting, sorting, depositing machines, and self-service facilities are capable of detecting marked banknotes, rejecting them, and not accepting them.
5. Train cash handling staff on identifying and detecting banknotes marked with security inks.
6. Do not deposit marked banknotes within bank/financial institution deposits at the Bank's branches. A fine will be imposed on each detected note within the bank's/financial institution's deposits in accordance with Article 23 of the Banking Control Law.
7. The compensating bank/financial institution shall bear the operational costs for compensating marked banknotes for each note where negligence and misconduct in handling security bags are proven.
8. The bank/financial institution bears responsibility for verifying that marked banknotes are not accepted. It must notify the Bank and security authorities and fill out the forms below. The bank/financial institution is also held responsible for any failure to implement these instructions by its contracted cash-in-transit provider.

Forms:

1. Form (1-1): Request for Compensation of Currency Marked with Security Inks.
2. Form (1-2): Declaration Regarding Currency Subject to Compensation.
3. Form (1-3): Report or Seizure Record of Currency Marked with Security Inks.

Request for Compensation of Currency Marked with Security Inks Form Form 1-1

Beneficiary/Agent Name: ........................................ Responsible Person Name: ........................................
ID Number: ........................................ Phone Number: ........................................
Phone/Mobile Number: ........................................ Email Address: ........................................
P.O. Box: ........................................ Postal Code: ........................................ City: ........................................
Agency Number, Date, and Issuing Authority: ........................................................................................................

Notes: Marked currency must be dry and sorted by denomination, with each bundle containing one hundred notes of the same denomination.
User: ........................................ Currency Protection Device Manufacturer: ........................................ Bag Serial Number: ........................................
Denomination: ........................................ Number of Banknotes: ........................................
Amount in Words: ........................................................................................................
Reasons for Damage to Currency Subject to Compensation:
[ ] Attempted theft
[ ] Technical reasons
[ ] Misuse of cash transit bag
[ ] Other

Required Attachments:
[ ] Report/Scene from Civil Defense
[ ] Power of Attorney
[ ] All supporting video clips/images - if available [ ] Report/Scene from Police [ ] Declaration regarding currency subject to compensation

I request that the compensation amount determined by the Compensation Committee be transferred to:
To Bank Account (IBAN): ........................................................................................................
At Bank/Financial Institution: ........................................ Other means: ........................................
Beneficiary/Agent Name: ........................................ Signature: ........................................
Cashier Name and Signature: ........................................ Operations Manager Name and Signature: ........................................

Transaction Number from Automated System: ........................................................................................................
Action at Branch/Central Treasury after Committee approves compensation amount:
Payment made to beneficiary:
[ ] Transfer to Account
[ ] Other
Automated Transaction Number: ........................................
Cashier Name and Signature: ........................................................................................................

Action at Branch/Central Treasury after one fiscal year passes following committee approval of compensation amount due to inability to contact beneficiary:
Transaction Number from Automated System: ........................................
Form received from Banking Services Department:
Name: ........................................ Signature: ........................................

Declaration Regarding Currency Subject to Compensation Form Form 2-1

Beneficiary Information
Beneficiary Name: ........................................ ID Number: ........................................
Mobile Number: ........................................ Employer: ........................................

Review Location: Saudi Central Bank branch in city of ........................................
Review Date: Day .................... Corresponding to .................... / .................... / 14 AH

I, ........................................................................................................, hereby declare that the data of the cash amount subject to compensation is accurate as detailed below:
Source of Currency: ........................................................................................................
Ownership of Currency: ........................................................................................................
Approximate Amount: ........................................................................................................
Currency Denominations: ........................................................................................................
Reason for Currency Damage: ........................................................................................................

I am also aware that intentionally damaging Saudi currency is punishable by law. If intentional damage to the aforementioned currency is proven, no compensation will be provided. If it contains counterfeit currency, counterfeit currency regulations and instructions will be applied.
Beneficiary Name: ........................................ Signature: ........................................

For Branch Treasury Department Use:
Responsible Person Name: ........................................
Responsible Person Title: ........................................
Signature: ........................................

Report or Seizure Record of Currency Marked with Security Inks Form Form 3-1

Date: .................... / .................... / 143 AH Corresponding to .................... / .................... / 20... AD Reference No.: ....................
Acquisition of marked currency via: [ ] Report [ ] Seizure Location of acquisition: [ ] Bank [ ] Financial Institution [ ] Commercial Establishment [ ] Police [ ] Police Station [ ] Individual [ ] Other

Currency Submitter:
First Name: .................... Father: .................... Grandfather: .................... Surname: .................... Place of Birth: .................... Country: .................... Nationality: ....................
ID: .................... Type: .................... Number: .................... Date: .................... Issuing Authority: ....................
Gender: [ ] Male [ ] Female Marital Status: .................... Education: .................... Occupation: ....................
Address: Work: .................... Phone: .................... Residence: .................... Phone: ....................
Sponsor: Name: .................... Phone: .................... Address: .................... Phone: ....................

Description of Currency Marked with Security Inks:
Currency Type: .................... Denomination: .................... Quantity: .................... Serial Number: ....................

Report Receiver:
Name: .................... Job Title: .................... Rank: ....................
Signature: ....................

Amount:
Name: .................... Signature: ....................
Fingerprint: ....................

Copy to Case File.
Copy to General Security / Criminal Security / Investigations and Criminal Research Department - Fax (0114054216). Copy to Saudi Central Bank, Currency Administration - Fax (0114662980).