“Approved” by the
Central Bank of the Republic of Azerbaijan
Resolution No. 23/1
18 May 2020

Regulations on signs of currencies unfit for circulation, their replacement and expertise

1. General provisions

1.1. These Regulations have been prepared in accordance with Articles 36, 37, 39 and 40 of the Law of the Republic of Azerbaijan “On the Central Bank of the Republic of Azerbaijan”.

1.2. These Regulations shall define signs of national currencies unfit for circulation and determine procedures for their replacement in the Central Bank of the Azerbaijan Republic and banks operating in the territory of the Republic of Azerbaijan, local branches of foreign banks and the national postal operator (hereinafter - banks), as well as determine the rules of examination of national and foreign currencies in these organizations.

2. Definitions

2.0. The terms used in these Regulations shall have the meanings given below:
2.0.1. genuine currency - a currency issued into circulation by the Central Bank of the Republic of Azerbaijan (hereinafter - the Central Bank) that has certain technical parameters, design and security elements;
2.0.2. unfit currency - a genuine currency that has any of the signs of unfitness established by these Regulations and is prohibited for re-circulation;
2.0.3. suspicious currency - a currency which authenticity is in doubt;
2.0.4. counterfeit currency - a currency imitating (similar to) currency issued by the Central Bank, regardless of the method of production and preparation, or made as a result of changing the denomination or other parameters of genuine currency;
2.0.5. exspert – an employee of the Central Bank who carries out the expertise of currencies;
2.0.6. expertise of currencies - determination of the authenticity or payment of the face value of a currency;
2.0.7. processing - counting currencies by piece on automated equipment or manually and classifying them according to face value, authenticity, suitability and unfitness for circulation;
2.0.8. special packaging units - ATMs and payment terminal cassettes, special containers and other packaging units providing safe storage and transportation of national currencies as well as a packaging units that automatically make currencies unusable for circulation by special means (special paints, chemicals, adhesives, etc.) during attempts of illegal interference;
2.0.9. CCMS - "Counterfeit Currency Monitoring System", which registers expertise operations at the Central Bank, provides information and reporting on these operations, as well as provides automated coordination with banks and other organizations.

3. Signs of unfitness of national currencies for circulation

3.1. National currencies accepted by banks shall be issued for re-circulation only after processing. In the process of processing, it is prohibited for banks to re-issue unfit national currencies with signs specified in these Regulations, such currencies shall be handed over to the Central Bank.

3.2. If the processing of banknotes on the equipment reveals any of the signs specified in Annex 1 to these Regulations, such banknotes shall be considered unfit for circulation. In this case, the banknote may be considered fit for circulation if there is a deviation of up to 5% of these indicators.

3.3. Banknotes shall be considered unfit for circulation if any of the following signs are revealed during the manual processing of national banknotes:

3.3.1. having cuts of any size, missing part, visually visible writing or stain;
3.3.2. visually noticeably contaminated, lost color, luster and freshness;
3.3.3. joined with adhesive tape, as well as other adhesive means.

3.4. When it is determined that the diameter or thickness, weight and physical properties of national coins are different from genuine coins during their processing on the equipment, those coins shall be considered unfit for circulation.

3.5. If the manual processing of coins reveals any of the signs specified in Annex 2 to these Regulations, such coins shall be considered unfit for circulation.

3.6. Banks may issue to circulation through ATMs only fit national currencies (including those received from the Central Bank) processed in automated systems in accordance with the requirements of these Regulations.

3.7. Cash equipment used by banks, including cashiers, processors, receivers (automated cash-in machines), etc. shall recognize genuine national currencies and shall not accept counterfeit currencies.

4. Replacement and expertise of national currencies

4.1. National currencies can be delivered to banks or the Central Bank for replacement. Replacement of currencies shall be carried out by checking the authenticity and verification of payment of their face value.

4.2. The authenticity of national currencies shall be verified on the basis of their security elements using various equipment, systems and means (magnifying glass, ultraviolet lighting device, infrared lighting device or other special equipment).

4.3. Payment of the face value of national currencies shall be determined by measuring their surface through the tables specified in Annex 3 to these Regulations.

4.4. The face value of non-counterfeit banknotes containing not less than 60% of the surface of a whole part or 100% of the parts belonging to the same banknote, as well as non-counterfeit coins containing 100% of the surface, which front, reverse and side border descriptions and inscriptions have not been erased or deformed, shall be subject to replacement.

4.5. The Central Bank shall issue an expert opinion on the forgery of national currencies or on the fact that parts of a currency that retain 100% of its surface belong to the same currency.

4.6. The Central Bank shall replace national currencies free of charge and the currencies with paid face value shall be replaced without limitations. Banks may carry out these operations on a paid or unpaid basis in accordance with their tariff policy when replacing currencies.

4.7. In order to determine the banknotes, the surface of which are not whole, 200 checkered tables of equal size specified in Annex 3 to these Regulations shall be used according to the size of each denomination.

4.8. The area of the banknote’s remaining surface shall be defined by the table as follows:

4.8.1. remaining parts of the banknote is put on the checkered table, aligned along the perimeter and a line is drawn along the lost edge of the banknote with a pen;

4.8.2. whole checkers remaining inside the outline are calculated, the quantity of checkers cut with outline is divided into two and added to the quantity of the whole checkers;

4.8.3. when the quantity of resulting checkers is equal to 120, the banknote is considered to have retained 60%.

4.9. National currency replacement operations shall be carried out during business hours determined by the internal regulations of banks and the Central Bank. Unexchanged currencies shall be returned to the person who delivered them during that time.

4.10. If it is not possible to determine the surface of the national currency delivered to the bank for replacement, or to determine whether the parts of the currency retaining 100% of its surface belong to the same currency, the currency shall be sent by the bank to the Central Bank for expertise.

4.11. When a suspicious currenccy is revealed, it is forbidden to return it to the customer, issue into circulation, stamp it or make any physical changes (put a written mark, cut, tear, pierce, etc.). In all cases, such currencies shall be sent to the Central Bank for expertise.

4.12. In the cases provided for in paragraphs 4.10 and 4.11 of these Regulations, currencies shall be delivered to the Central Bank for expertise within 3 (three) business days. In this case, the bank developes an application in triplicate (Annex 4). One of the copies shall be given to the customer with an appropriate note made by the bank, the second one shall be kept in the bank, while the third copy shall be submitted to the Central Bank together with the currency.

4.13. When national currencies which authenticity is in doubt or which surface cannot be identified are delivered directly to the Central Bank for expertise, the Central Bank shall develop an electronic application in triplicate in the CCMS (Annex 5). One copy of the application shall be submitted to the customer with an appropriate note, the second copy shall be filed in the relevant unit of the Central Bank accepting the currency, and the third copy shall be submitted to the expert together with the currency.

4.14. When national currencies of doubtful authenticity are delivered to the Central Bank by law enforcement agencies, courts and other government agencies, such currencies shall be registered in the CCMS and sent for expertise.

4.15. Expertise of currencies shall be carried out within 10 (ten) business days after receipt by the Central Bank. If it is not possible to determine the authenticity of the currency within this period, the process of expertise may be extended up to 30 (thirty) business days. The person delivering the currency shall be notified in writing.

4.16. When the Central Bank determines the authenticity of the currency and the payment of the face value as a result of the expertise, the expert shall put a stamp with the words “VALUE PAID” on the currency and registered in accordance with paragraph 4.18 of these Regulations.

4.17. If the Central Bank determines the authenticity of the currency as a result of the expertise, but does not pay the face value, the expert shall put a stamp with the words "NO VALUE PAID" on the currency and register it in accordance with paragraph 4.18 of these Regulations.

4.18. The Central Bank shall develop an electronic act on the results of the expertise in the СCMS (Annex 6), which is approved by the expert and the head of the structural unit carrying out the expertise. This act shall be submitted to banks in an electronic form via CCMS, and to banks and other persons not connected to CCMS, on paper.

4.19. If the expertise determines that the currency is genuine and the face value of the currency is payable, the value of the money shall be paid by the Central Bank to the person who delivered it.

4.20. Counterfeit, as well as non-payable national currencies identified as a result of the expertise, shall not be returned and the face value of the money shall not be paid. The person delivering the currency for expertise shall be notified in advance by the banks and the Central Bank, respectively.

4.21. Upon completion of the expertise process, the expertise act on the counterfeit currency and information on legal entity or individual delivering the counterfeit money shall be sent to the law-enforcement agencies within 5 (five) business days for taking measures in accordance with the legislation.

4.22. Upon completion of the criminal case, the counterfeit currencies shall be handed over to the Central Bank.

4.23. If there is a suspicion that a currency delivered for replacement or expertise has been intentionally rendered unusable as a result of an illegal act, the currency shall be submitted to the law-enforcement agencies for taking measures in accordance with the legislation.

5. Acceptance for expertise and replacement of national currencies that have become unusable in special packaging units

5.1. The Central Bank shall accept national banknotes that have become unusable in special packaging units for expertise only from banks.

5.2. In case of compliance with the requirements of paragraphs 5.3 and 5.4 of these Regulations, currencies that have become unusable in special packaging units shall be examined by the Central Bank. In case of non-compliance with these requirements, banknotes that have become unusable in special packaging units shall not be accepted for expertise and their face value shall not be paid.

5.3. At least 30 (thirty) business days prior to the start of the use of special packaging units, banks shall submit to the Central Bank information on the technical characteristics of special packaging units (samples and technical documents of special means to make money unfit for circulation, including a certificate that such means are harmless and non-toxic to human health).

5.4. At least 30 (thirty) business days prior to the start of the use of special packaging units for transportation of cash, the bank’s customers shall provide the bank with information on their technical characteristics (samples and technical documents of special means to make money unusable, including a certificate that such means are harmless and non-toxic to human health).

5.5. The bank shall submit the information received from the customer on the technical characteristics of the special packaging units to the Central Bank within 3 (three) business days.

5.6. The Central Bank shall notify the bank in writing within 3 (three) business days of the completeness of the information provided in accordance with paragraphs 5.3 and 5.4 of these Regulations.

5.7. If currencies become unfit for circulation as a result of opening special packaging units caused by technical error, negligence and other similar cases without illegal intervention, such currencies shall be delivered for expertise to the Central Bank together with an application (Annex 7) accompanied by an official request of the head of the relevant bank.

5.8. If currencies become unfit for circulation as a result of opening special packaging units caused by illegal actions (theft and other illegal actions), such currencies shall be delivered to the Central Bank together with an application (Annex 7) accompanied by a statement on the case issued by the law-enforcement agency.

5.9. If during the expertise it is established that the currency is genuine and the face value is payable, the face value of the currency shall be paid by the Central Bank in accordance with paragraph 4.16 of these Regulations. If the expertise determines that the currency is not payable, appropriate measures shall be taken in accordance with paragraph 4.17 of these Regulations, and if the expertise finds that the currency is counterfeit, appropriate measures shall be taken in accordance with paragraph 4.21 hereof.

5.10. Banks and other persons shall immediately inform law-enforcement agencies and the Central Bank about the theft of a special packaging unit or money that has become unusable in this packaging unit. The Central Bank, for its part, shall provide information to law-enforcement agencies and other banks, and such information shall be placed in the media.

5.11. Expertise and registration of currencies that have become unfit for circulation in special packaging units shall be carried out in accordance with these Regulations.

6. Expertise of foreign currencies

6.1. Expertise of foreign currencies may be carried out by banks in accordance with their internal regulations.

6.2. If the bank is unable to determine the authenticity of a foreign currency, it may submit the currency to the Central Bank or the issuing bank for expertise. In such cases, the acceptance of currency shall be registered in accordance with paragraph 4.12 of these Regulations.

6.3. If the bank determines that the currency is counterfeit, it shall be delivered to the law -enforcement body for taking appropriate measures in accordance with legislation.

6.4. The Central Bank shall accept for expertise foreign currencies, the authenticity of which is in doubt, from banks, law-enforcement agencies, courts and other government bodies (institutions).

6.5. Expertise of foreign currencies by the Central Bank shall be carried out within 10 (ten) business days on the basis of security elements known to it. If it is necessary to apply to the institution that issued the currency for its expertise, the person who delivered the currency shall be notified in writing.

6.6. In case of detection of counterfeiting of foreign currencies during the expertise held by the Central Bank, measures shall be taken in accordance with paragraph 4.21 of these Regulations. If no signs of counterfeiting are found as a result of the expertise, the currency shall be handed over to the person who delivered it, together with the act developed in the CCMS.

Annex 1
to the Regulations on signs of currencies
unfit for circulation, their replacement
and expertise

a) As a result of contamination, the brightness on the front and (or) reverse has been reduced by 7% or more (any spectrophotometric or colorimetric equipment can be used to measure the brightness).

The reduction of the L(*) brightness (lightness) parameter of the CIE LAB colorimetric system is used as the main indicator when measuring contamination. This indicator is calculated by the following formula based on the decrease in the brightness of the banknote measured relative to the brightness index (L (o)) of each new denomination.