BSP rules on Philippine currency notes and coins

Key definitions for currency offenses

“Legal Tender Philippine Currency” means notes and coins issued and circulating in accordance with R.A. No. 265, as amended, and/or R.A. No. 7653, which must be accepted when offered in payment of public or private debt.
“Counterfeit Note” means an imitation of a legal and genuine note intended to deceive or to be taken as the original, legal, and genuine.
“Counterfeit Coin” means an imitation or forged design of a genuine and legal coin, regardless of intrinsic value or metallic composition, intended to deceive or pass as the genuine coin.
“Unauthorized Reproduction of Legal Tender Philippine Note” means reproducing a facsimile or any illustration/object bearing the likeness/similitude of a legal tender Philippine currency note or any part thereof without prior authority from the Governor of BSP or his duly authorized representative.
“Unauthorized Reproduction of Legal Tender Philippine Coin” means reproducing a facsimile or any metal object bearing the likeness/similitude of a legal tender Philippine currency coin or any part thereof without prior authority from the Governor of BSP or his duly authorized representative.

Counterfeit notes: handling and disposition

Any person or entity that receives or takes hold of a counterfeit note/coin or a note/coin whose genuineness is questionable (Philippine or foreign) must issue a temporary receipt to the owner/holder containing: the holder’s name, address, and community tax certificate number or passport number (for foreigners), date of receipt, denomination, and serial/series details.
The owner/holder must countersign the temporary receipt; if the owner/holder refuses, the refusal reason must be stated in the receipt (Section 2).
Any person or entity that receives, takes hold, or possesses such counterfeit/possibly counterfeit currency must forward it within five (5) working days from receipt/possession, together with a copy of the temporary receipt, for examination to the Cash Department, BSP, A. Mabini St., Manila (Section 3).
If personal delivery to the BSP Cash Department (Manila) is not feasible, the currency may be delivered through BSP Regional Offices/Units or any BSP-supervised banking institution (Section 3).
A law enforcement agency that conducted a seizure must, within five (5) working days from seizure, advise the BSP Cash Department in writing and enclose a copy of the receipt and inventory; notes/coins not needed as evidence in any investigation/legal proceedings must be immediately turned over to the BSP Cash Department for proper disposition (Section 4).
After examination, the Cash Department shall (a) issue a certification for the currency examined if needed, (b) stamp the word “COUNTERFEIT” on both face and back of each counterfeit note, and (c) return genuine notes/coins to the owner/holder and/or sender under existing accounting and auditing regulations (Section 5).
Notes and coins determined counterfeit must not be returned; they are retained and later disposed of under BSP guidelines, except those used as evidence in investigations/legal proceedings, which BSP must retain and preserve for evidentiary purposes (Section 6).
The BSP must provide assistance requested for investigation, apprehension, and/or prosecution of persons responsible for counterfeiting, whether Philippine or foreign currency (Section 7).

Unauthorized facsimiles: notes and coins

No person or entity may design, engrave, print, execute, utter, issue, distribute, circulate, or use any handbill, advertisement, placard, circular, card, or other object bearing the facsimile/likeness/similitude of any legal tender Philippine currency note (or any part), in any colors, without prior authority from the Governor of BSP or his duly authorized representative (Section 8).
The Governor of BSP or his duly authorized representative may authorize reproduction and/or use of facsimiles or illustrations of legal tender Philippine currency notes for printed illustrations in articles, books, journals, newspapers, or similar materials strictly for numismatic, educational, historical, newsworthy, or other purposes that maintain, promote, or enhance the integrity and dignity of the note, subject to size limits and purpose restriction (Section 9).
Authorized note facsimiles/illustrations must be of a size less than three-fifths (3/5) or more than one and one-half (1A12) times in size of the currency note being illustrated, with no deviation from the authorized purpose (Section 9).
No person or entity may design, engrave, make, execute, or use/issue/distribute any object bearing the likeness/similitude of the design, color, or inscription of any legal tender Philippine currency coin (in metal form, irrespective of size and metallic composition) without prior authority from the Governor of BSP or his duly authorized representative (Section 10).
The Governor of BSP or his duly authorized representative may authorize reproduction and/or use of facsimiles or objects bearing the likeness/similitude of legal tender Philippine currency coins strictly for numismatic, educational, historical, and other purposes that maintain, promote, or enhance the integrity and dignity of said coins (Section 11).

Clean Note Policy for bank deposits

Banks and their branches must observe guidelines and procedures for expeditious withdrawal from circulation of unfit Philippine currency notes classified under Section 15, Chapter V when making cash deposits with the BSP Cash Department or any BSP Regional Offices/Units (Section 12).
Banks must classify cash deposits into (1) clean and fit notes and (2) dirty or unfit notes, following the “Currency Guide for Bank Tellers, Money Counters and Cash Custodians” prepared by the Cash Department, BSP, and further sort by series and denomination (Section 12).
Banks must provide securely sealed bags/containers separately for clean/fit notes and for dirty/unfit notes and must accompany each type/category with a deposit slip, with the unfit slip clearly labelled “unfit” (Section 12).
Banks must pack deposits in sealed bags/containers in standard quantity of twenty (20) full bundles per denomination, with each bundle containing 1,000 notes in ten (10) equal straps, each strap containing 100 notes (Section 12).
Provincial bank branches may make direct deposits of identified and sorted currency notes with the nearest BSP Regional Office/Unit; where there is no BSP Regional Office/Unit, provincial branches must arrange shipment with their head offices for deposit of unfit/dirty notes to BSP Cash Department in Manila, with cost of shipment and related expenses solely for the account of the bank (Section 12).
BSP Cash Department and BSP Regional Offices/Units may refuse acceptance of deposits that do not conform to these guidelines and procedures (Section 13).

Replacement and redemption: unfit and mutilated

The BSP withdraws from circulation and demonetizes notes and coins unfit for circulation and replaces them with adequate notes and coins; BSP must not replace notes and coins where identification is impossible, coins show signs of filing/clipping/perforation, or notes have lost more than two-fifths (2/5) of their surface or all signatures, and those mutilated notes/coins are withdrawn and demonetized without compensation to the bearer (Section 14, citing Section 56 of R.A. No. 7653).
A currency note is unfit for circulation if it contains heavy creases breaking the fiber indicating disintegration has begun, provided mere creasing or wrinkling without breaking/weakened fiber does not render it unfit; it is badly soiled/contaminated and/or with writings even with proper life or sizing; or it presents a limp or raglike appearance (Section 15).
A currency note is mutilated if torn parts are joined with adhesive tape preserving the original design/size as nearly as possible; if original size is reduced/lost through wear and tear or otherwise torn/damaged/defaced/perforated by insects/chemicals/other causes; if scorched/burned to the extent that it is frail and brittle so further handling is impossible without disintegration/breaking; if split edgewise; or if it has lost all signatures inscribed thereon (Section 16).
A currency coin is unfit for circulation if bent/twisted out of shape or defaced while genuineness/denomination can still be readily and clearly determined/identified; or if considerably reduced in weight by natural abrasion/wear and tear (Section 17).
A currency coin is mutilated if it shows signs of filing/clipping/perforation; or if burned or so defaced that genuineness/denomination cannot be readily and clearly identified (Section 18).
Notes and coins considered unfit must not be recirculated, but may be presented for exchange to or deposited with any bank (Section 19).
Notes and coins considered mutilated must not be recirculated nor deposited/exchanged, but may be presented or forwarded for determination of redemption/exchange value to the BSP Cash Department (Manila) or the nearest BSP Regional Office/Unit (Section 20).
The BSP replaces or redeems notes and coins considered unfit or mutilated except when they fall under classifications: identification is impossible; coins show filing/clipping/perforations; or notes have lost more than two-fifths (2/5) of their surface or all signatures inscribed thereon; notes/coins falling in these classifications are withdrawn from circulation and demonetized without compensation to the owner/bearer (Section 21).

Replacement calls: timing, tender status, exchange

The BSP may call in for replacement notes of any series or denomination more than five (5) years old and coins more than ten (10) years old (Section 22, citing Section 57 of R.A. No. 7653).
Notes and coins called in for replacement remain legal tender for one (1) year from the date of call; after that, they cease to be legal tender but during the following year, or for such longer period as the Monetary Board determines, they may be exchanged at par and without charge in BSP and by BSP-authorized agents (Section 22).
After the expiration of the exchange period, notes/coins not exchanged cease to be a liability of the BSP and are demonetized; BSP also demonetizes all notes and coins called in and replaced (Section 22).
Any person or entity possessing notes/coins called in for replacement must forward them during the redemption period to either (a) authorized agent banks of BSP when still legal tender, within one (1) year from the date of call, or (b) BSP Cash Department or BSP Regional Offices/Cash Units within the redemption period determined by the Monetary Board (Section 23).
BSP Cash Department or BSP Regional Cash Units shall exchange called-in notes/coins if presented within the redemption period determined by the Monetary Board and shall dispose of them in accordance with BSP disposal procedures (Section 24).

Criminal penalties for unauthorized currency dealings

Any violation of Sections 8 and 9 (Chapter II) and Sections 10 and 11 (Chapter III) subjects the offender to imprisonment of not less than five (5) years and not more than ten (10) years; if the Revised Penal Code provides for a greater penalty, that greater penalty shall be imposed (Section 25).

Revocation and effectivity

Section 26 revokes and repeals all Central Bank Circulars, pertinent provisions in the Manual of Regulations for Banks and Other Financial Intermediaries, and other rules and regulations that are contradictory or inconsistent with BSP Circular No. 61.
Section 27 provides that BSP Circular No. 61 takes effect immediately.