Central Bank of BiH issues an important Notice regarding the damaged Banknotes

April 23, 2018 4:00 PM

The increased number of intentionally damaged banknotes has been recently identified in regular cash operations, this damaging was caused with writing/drawing on the white part of banknotes surface, both with graphite pencil and with pen, too. The damages are mostly made with writing a number on a banknote, with a pen. We assume the writing is related to the process of the manual banknotes counting, when a person counting the banknotes, in an irresponsible and unlawful way, put on them in handwriting a certain amount with a pen, thus directly causing the banknotes to be unfit for future circulation. Also, it is not a rare case that the banknotes are damaged by manually writing on them the text, drawings, symbols and similar with graphite pencil or with a pen.

Hereby, the Central Bank of Bosnia and Herzegovina (CBBH) draws attention to all business entities, as well as to citizens, that according to the banking practice, any writing or drawing on the banknote is considered to be intentional damaging of it, being the legal tender.

According to the CBBH Law and to the Decision about the Proceeding on the Banknotes and Coins of Convertible Mark and Foreign Currency Banknotes, Unfit for the Circulation (Official Gazette of BH, 17/17, dated March 10, 2017), if the Central Bank of BH doubts, or has the evidence or probable cause to consider that the money is intentionally damaged, it can seize the money, submitted for replacement and destroy it without compensation to the one who brought the currency.

Herein, we invite all business entities handling the cash in its operations, to draw attention to the persons engaged in these operations, that it is strictly forbidden to write on banknotes, because if doing so, they cause the direct banknotes damaging, resulting ultimately with the mandatory destruction at the Central Bank, since they are unfit for circulation.

At the same time, with the increased number of this kind of currency damaging, there is also the increased number of citizens’ complaints about commercial banks declining to replace the damaged currency, regardless the way or the degree of damage.

In accordance with the above-mentioned Decision, the commercial banks are obliged to replace damaged KM banknotes, on condition that the applicant (physical or legal entity) presents over 60% of the KM banknote, which is:

a) in one piece and contains at least one serial number or

b) in two or more pieces and contains both serial numbers,

in full amount and free of charge.

If the banknotes do not meet the required conditions for replacement in commercial banks, then they can be submitted into the CBBH’s Head Office in Sarajevo or into the Main Bank of Republika Srpska of the Central Bank of BH in Banja Luka, with filled-in Request Form for Replacement of Damaged KM Currency (to download from the CBBH website: www.cbbh.ba). When submitting damaged KM banknotes for replacement, the applicant (physical or legal entity) is obliged to state the origin of the KM damaged currency, what happened to the banknote missing pieces and to describe the type of stain, contamination and other damages on the submitted KM banknote. The a.m. entity is also obliged to provide a copy of the ID card and evidence confirming the statement in the Request. Based on the submitted Request with enclosed documentation, for each individual case, the Central Bank determines the authenticity and estimates the damage, i.e. defines the existence of grounds for the substitution of damaged KM banknotes.

Herein, the Central Bank emphasizes the need and the obligation of all the participants in cash payments to act responsibly in handling with KM banknotes and coins, which are legal tender, and to replace the damaged money in accordance with the regulations published in the official gazettes of BH.

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