Law Summary
Authority and Scope of BSP in Currency Matters
- BSP exclusively authorized to issue currency in the Philippines.
- Prohibition on unauthorized circulation or reproduction of currency or facsimiles.
- BSP empowered to investigate, arrest, conduct searches, and seizures to maintain currency integrity.
- Violations punishable by imprisonment between 5 to 10 years or higher penalties under the Revised Penal Code.
Procedure for Handling Counterfeit Currency
- Receipt issuance is required when a counterfeit or suspicious currency note/coin is received.
- Details on the receipt must include person’s identification and currency specifics.
- Receipt must be countersigned or refusal noted.
- Counterfeit or questionable currency must be forwarded to BSP within 5 working days.
- Delivery to BSP may be direct or through Banks/BSP Regional Offices.
Law Enforcement Agency Responsibilities
- Law enforcement must notify BSP within 5 days of seizure of counterfeit currency.
- Seized currency not needed for legal evidence must be given to BSP.
BSP Examination and Certification
- BSP will examine currency and issue certifications if needed.
- Counterfeit notes are stamped "COUNTERFEIT" on front and back.
- Genuine currency is returned according to accounting rules.
- Counterfeit currency retained for destruction or evidence purposes.
Assistance in Counterfeiting Investigations
- BSP shall assist in investigations and prosecutions of counterfeiting activities.
Regulations on Facsimiles of Philippine Currency Notes
- Prohibited to reproduce, distribute, or use facsimiles of currency notes without BSP approval.
- Exceptions for educational, historical, numismatic, newsworthy uses under strict conditions and size limitations.
Regulations on Facsimiles of Philippine Currency Coins
- Similar prohibitions and conditions as currency notes regarding reproduction and use of coin facsimiles.
Clean Note Policy for Currency Deposits
- Banks must classify currency deposits into clean/fit and dirty/unfit categories.
- Notes should be sorted by denomination and series.
- Separate sealed containers and specific packing requirements must be followed.
- Provincial bank branches may deposit directly to nearest BSP regional office or coordinate shipment to BSP Manila.
- Non-compliant deposits may be refused by BSP.
Replacement and Redemption of Unfit or Mutilated Currency
- BSP mandated to withdraw and replace currency unfit for circulation.
- Unfit notes characterized by heavy creases breaking paper fiber, soiling, writings, limp appearance.
- Mutilated notes include torn pieces taped together, scorched, defaced, or losing important parts like signatures.
- Unfit coins are bent, defaced but identifiable; mutilated coins show signs of filing, clipping, or are unidentifiable.
- Unfit notes/coins may be exchanged at banks; mutilated currency must be presented to BSP for valuation.
- Certain currency mutilations disqualify compensation (e.g., loss of 2/5 surface or signatures, signs of clipping).
Call-In and Demonetization of Old Currency
- BSP may call in notes older than 5 years and coins older than 10 years for replacement.
- Called-in currency remains legal tender for one year, then can be exchanged for another year at BSP or authorized agents.
- After the exchange period, unexchanged currency is demonetized and ceases liability of BSP.
- Called-in currency must be forwarded during redemption period to authorized agents or BSP offices.
Penalties for Unauthorized Reproduction
- Violations of facsimile reproduction regulations punishable by imprisonment from 5 to 10 years or higher penalty if under Revised Penal Code.
Repealing Clause
- Inconsistent circulars, manual provisions, and regulations are revoked.
Effectivity
- The circular is effective immediately upon issuance on January 21, 1995.