Amendment to Regulations on Clean Note and Coin Policy

BANGKo SerurneL NG prlrernas OFFICE OF THE GOVERNOR CIRCULAR NO. 897 Series of 20i.6 subject: Amendment to Regulations on ctean Note and coin policy The Monetary Board, in its Resolution No. 21j.2 dated l.g December 2015, approved the amendments to the pertinent provisions of the Manual of Regulations for Banks (MORB) relative to the Banko sentral's clean Note and coin policy Section 1. Subsection X950.5 of the MORB shall be amended to read as follows: S x950.5 (2008 - x610.6) Clean note and coin policy. As part of banks' duties as authorized agents of the Bangko Sentral, banks are enjoined to accept unfit Philippine currency notes and coins from the depositing public. Banks shall also accept, without handling fees or charges, non-mutilated coins for deposit, regardless of denomination, from the public. Further, banks shall re-circulate such coins received from the depositing public. To effect an expeditious withdrawal from circulation of unfit philippine currency notes classified under Subsec. x950.6, banks and their branches shall observe the following guidelines and procedures when making cash deposits with the Cash Department (cD) or any of the Regional offices/Branches of the Bangko Sentral. XXX d. Provincial branches of banks may make direct deposits of currency notes, duly identified and sorted, with the nearest Bangko Sentral Regional office/Branch. ln areas where there are no Bangko sentral netional Offices/Branches, provincial branches of banks shall arrange with their respective Head Offices the shipment of their unfit or dirty notes for deposit with the CD, Bangko Sentral in Quezon City. Cost of shipment and other retated expenses to be incurred shall be solely for the account of the bank concerned. Coins submitted by banks to Bangko Sentral for deposit/determination of redemption value shall be packed/bagged in accordance with the following procedure: xxx The CD and the Regional Offices/Branches of Bangko Sentral may refuse acceptance of cash deposits that do not conform to these guidelines and procedures. A. Mabini st., Malate 1004 Manita, philippines o (63217o8-77or. www.bsp.gov.ph . [email protected]

In order to ensure that banks comply with the provisions under this Subsection, banks are required to incorporate measures on the implementation thereof in their compliance pr'ogram. Moreover, banks shsutd csrduct perlodic comSi*nee Reilng b cover their complianee with these requifements. section 2. Subsection X950.8 on Penalties is retitled and amended TOilOWS: to read as $ l(9s0'8 (W - rcunl s&rrrlrwttrctbns. Consbtent with Ctrcular NE, 875 dated 15 April 2015, the sangko s€ntrat rnay promote adherence to the reguirements set forth Stoy enforcernent actions to in Section )€50 and its subsections, and bring about timety corrective actions. The Bangko sentral may issue directives or'impose sanctions on the bank, for violation of the,provisions of section )g5o ard its subsectian+ wttich rnay inclr*de" a{nong qthers, restrictions sr prohibitions from certain authorities/activities sanctions may fikewise be imposed on bank directors, officers and emproyees concerned. Further, any violation of the provisions of subsecs. xg50.3 and Xg50.4, shall subject the offender to imprisonment of not less than five (s) years, but not more than ten {1o} years' tr,r case the Revised Peoal code provides for e greater F€natt}, then that p€rlatty*rd be imposed. This circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: /,^nv-- AMANDgM. TETANGCO, JR. / Governor 6 January2O16 Pqe2 of 2