Regulations on the Handling of Counterfeit, Altered and Imitation New Taiwan Dollar Notes and Coins by Financial Institutions

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Title：

Regulations on the Handling of Counterfeit, Altered and Imitation New Taiwan Dollar Notes and Coins by Financial Institutions

Amended Date： October 15, 2002

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Article 1

These Regulations are prescribed pursuant to Article 18-2 of the Central Bank of the Republic of China (Taiwan) Act.

[Authorized Circulars]

Article 2

When a financial institution discovers that the New Taiwan dollar ("NT dollar") notes or coins received from clients are counterfeit (altered) or imitations, the financial institution, in addition to immediately informing the original currency holder, shall, in the case of currency notes, affix a "void/counterfeit" seal to the notes (specimen in Appendix 1), and in the case of coins, deliver the coins to the Central Bank of the Republic of China (Taiwan) ("the Bank") to be voided by notching. At the same time, the financial institution shall produce in triplicate a form for "retention of counterfeit, altered or imitation NT dollar" (as in Appendix 2). The first copy is to be retained by the financial institution, the second given to the currency holder, and the third sent to the Department of Issuing of the Bank along with the counterfeit (altered) or imitation currency. After receiving the same, the Department of Issuing of the Bank will produce a list of report forms on a regular basis to be sent to the financial institutions that originally submitted the counterfeit, altered, or imitation currency.

Article 3

Where counterfeit (altered) or imitation currency is discovered and there are suspicious circumstances connected with the original holder, or where the financial institution is unable to handle the matter due to the holder's refusal to allow it to retain the currency, an immediate report shall be made to the local police authority for investigation.

[Authorized Regulations]

[Related Circulars]

[Authorized Circulars]

Article 4

In addition to the methods of handling set forth in Article 2, when the Bank of Taiwan discovers counterfeit (altered) or imitation of NT Dollar in the course of handling currency withdrawn from circulation and delivered to it by other financial institutions, it may also collect all such currency within five days after the end of each month and deliver it to the Department of Issuing of the Bank.

Article 5

The Department of Issuing of the Bank shall number and register counterfeit (altered) or imitation notes and coins received from financial institutions. The Department of Issuing of the Bank shall immediately inform the police authorities in writing to investigate any newly discovered type of counterfeit (altered) or imitation notes and coins.

Article 6

The Department of Issuing of the Bank and the Bank of Taiwan may retain a sample of each newly discovered type of counterfeit (altered) or imitation notes and coins to meet the requirements in their operations, and make out a file card for future reference (see Appendix 3 for the card format). The rest of the counterfeit notes and coins shall be kept by the Department of Issuing of the Bank for a period of five years, and shall then be destroyed thereafter. A table verifying destruction of the notes and coins shall also be maintained (see Appendix 4 for the format).

Article 7

When the Department of Issuing of the Bank destroys counterfeit (altered) or imitation notes or coins, it shall issue a letter of invitation to the Bankers Association of the ROC and the Bank of Taiwan to dispatch personnel to participate, and shall distribute copies of the table verifying destruction of the notes and coins to the participating institutions.

Article 8

These Regulations shall come into force on the day of promulgation.