Exchange of Mutilated Paper Currency
A Rule by the
Dates: Comments must be received no later than
Entry Type: Rule
Action: Interim rule.
Document Citation: 79 FR 30724
Page: 30724 -30726 (3 pages)
CFR: 31 CFR 100
Document Number: 2014-12435
Shorter URL: https://federalregister.gov/a/2014-12435
Comments must be received no later than
Electronic Submission of Comments: Interested persons are encouraged to submit comments electronically through the Federal eRulemaking Portal at http://www.regulations.gov. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt, and enables the Department to make them available to the public. Comments submitted electronically through the http://www.regulations.gov Web site can be viewed by other commenters and interested members of the public.
Mail: Comments may be sent to the
FOR FURTHER INFORMATION CONTACT:
This Interim Rule
This rule establishes the process by which members of the public may request redemption of mutilated currency. It also sets forth the steps taken by the
The first category of amendments relates to general notification to the public concerning redemption of mutilated paper currency and the characteristics that the mutilated paper currency submissions should possess for possible redemption. (31 CFR 100.5) The revisions also capture formatting changes as the current regulations predate many of the current regulatory format standards.
The second category of amendments serves to notify the public of the present practices in the
The third category of amendments would further clarify the requirements for packaging and shipping mutilated currency submissions and update the delivery methods and the appropriate address for shipping purposes. (31 CFR 100.8) Additional amendments were proposed in order to discourage submitters from tampering with or altering their mutilated currency submission in an attempt to preserve it. For example, bills laminated with tape or glued together in previous submissions made it more difficult for mutilated currency examiners to determine if the bills were fraudulent.
The fourth category of amendments serves to put the public on notice that the Director may provide information pertaining to any mutilated currency submission to law enforcement officials or other third parties for purposes of investigation of related criminal activity or for purposes of seeking civil judgment. (31 CFR 100.9) In a further attempt to deter fraud, the amendments also serve to notify potential submitters that they may be held criminally and/or civilly liable, fined, and/or imprisoned for fraudulent submissions.
Executive Order 12866
This rule is not a significant regulatory action, as defined in Executive Order 12866. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C.
This rule is being issued without prior public notice and comment because under 5 U.S.C. 553(b) and (d)(3) good cause exists to determine that prior notice and comment rulemaking is unnecessary and contrary to the public interest. The regulations implemented through this rule update obsolete language and redemption of mutilated currency procedures and provide the public with more specific information on the voluntary process for submitting mutilated currency for possible redemption. The regulations do not adversely affect the rights of the public. Additionally, delay in the effective date of this rule is contrary to the public interest because there are indicators of current fraud schemes aimed at the newly designed next generation
List of Subjects in 31 CFR Part 100
For the reasons stated in the preamble, the
PART 100--EXCHANGE OF PAPER CURRENCY AND COIN
1.The authority citation for 31 CFR part 100 continues to read as follows:
31 U.S.C. 321.
2.Revise subpart B to read as follows:
Subpart B--Request for Examination of Mutilated Currency for Possible Redemption
100.5 Mutilated paper currency.
100.6 Destroyed paper currency.
100.7 Treasury's redemption process.
100.8 Packaging and shipping of mutilated currency.
section 100.5 Mutilated paper currency.
(a) General. Lawfully held mutilated paper currency of
(b) Definitions. The following definitions are used in this subpart:
Mutilated currency is currency which has been damaged to the extent that:(i) One-half or less of the original note remains; or
(ii) Its condition is such that its value is questionable and the currency must be forwarded to the
Unfit currency is currency which is unfit for further circulation because of its physical condition such as torn, dirty, limp, worn or defaced. Unfit currency should not be forwarded to the
section 100.6 Destroyed paper currency.
No relief will be granted on account of lawfully held paper currency which has been totally destroyed.
section 100.7 Treasury's redemption process.
(a) Lawful holders of mutilated currency may receive a redemption at full value when:
(1) Clearly more than 50% of a note identifiable as
(2) Fifty percent or less of a note identifiable as
(b) No redemption will be made when:
(1) A submission, or any portion thereof, demonstrates a pattern of intentional mutilation or an attempt to defraud
(2) A submission appears to be part of, or intended to further, any criminal scheme. In such instances, the entire submission will be destroyed or retained as evidence.
(3) A submission contains a material misrepresentation of facts.
(4) Fragments and remnants presented are not identifiable as
(5) Fragments and remnants presented which represent 50% or less of a note are identifiable as
(c) Lawfully held mutilated currency in a submission that also contains counterfeit currency may be destroyed or retained as evidence, at the discretion of the Director of the
(d) All cases will be handled under proper procedures to safeguard the funds and interests of the submitter of lawfully held mutilated currency. In some cases, the amount redeemed will be less than the amount estimated by the submitter. In other cases, the amount redeemed may be greater. The amount redeemed will be determined by an examination made by trained mutilated currency examiners and governed by the above criteria.
(e) The Director of the
(f) All submissions for review shall include an estimate of the value of the currency and an explanation of how it came to be mutilated. The submission should also contain the bank account number and routing number for an account of a
section 100.8 Packaging and shipping of mutilated currency.
Mutilated currency examiners are best able to determine the value of the currency when it has been carefully packed and boxed as described below. As a result, failure to follow the directions in this section may result in a denial of redemption:
(a) Regardless of the condition of the currency, do not disturb the fragments more than is absolutely necessary.
(b) If the currency is brittle or inclined to fall apart, pack it carefully in cotton and box it as found, without disturbing the fragments, if possible.
(c) If the currency was in a purse, box, or other container when mutilated, it should be left therein, if possible, in order to prevent further deterioration of the fragments or from their being lost.
(d) If it is absolutely necessary to remove the fragments from the container, send the container with the currency and any other contents found, except as noted in paragraph (g) of this section.
(e) If the currency was flat when mutilated, do not roll, fold, laminate, tape, glue or in any other way alter the currency in an attempt to preserve it.
(f) If the currency was in a roll when mutilated, do not attempt to unroll or straighten.
(g) If coin or any other metal is mixed with the currency, remove carefully. Do not send coin or other metal in the same package with mutilated paper currency, as the metal will break up the currency. Coin should be exchanged in accordance with subpart C of this part.
(h) Mutilated currency shipments must be addressed as follows:
(1) USPS Delivery--Department of the Treasury,
section 100.9 Notices.
(a) The Director may provide information pertaining to any mutilated currency submission to law enforcement officials or other third parties for purposes of investigation of related criminal activity or for purposes of seeking a civil judgment.
(b) Whoever mutilates currency with the intent to render it unfit to be reissued may be fined and/or imprisoned. 18 U.S.C. 333.
(c) Whoever intentionally files a false claim seeking reimbursement for mutilated currency may be held criminally liable under a number of statutes including 18 U.S.C. 287 and 18 U.S.C. 1341 and may be held civilly liable under 31 U.S.C. 3729, et seq.
[FR Doc. 2014-12435 Filed 5-28-14;
BILLING CODE 4840-01-P
[*Federal RegisterVJ 2014-05-29]
For more information about
TNS 22VistaJ-140529 gv-1163502
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