The Ops Stop provides your organization with a one-stop shop full of helpful operational resources offered by the Federal Reserve Banks. For this installment of the series, we are reviewing how to handle mutilated currency.
Did you know the U.S. Department of the Treasury’s Bureau of Engraving and Printing (BEP) handles nearly 30,000 claims each year and redeems mutilated currency valued at over $30 million? Anyone with day-to-day cash handling responsibilities is likely to come across mutilated currency at their institution. While the Federal Reserve does not accept deposits of mutilated currency, it’s important to know what to do and what not to do with it.
What is mutilated currency?
Mutilated currency refers to dollars that are so damaged, only half or less of each note remains and could require examination by a trained expert at the BEP to determine its value. Examples include burned, buried or water-damaged currency.
What to do
You can send mutilated currency directly to the BEP’s Mutilated Currency Division with a statement of its estimated value and an explanation of the damage. For shipping instructions and photo examples of mutilated currency, visit the Mutilated Currency Redemption (Off-site) page of the BEP website or call the BEP’s toll-free number at (866) 575-2361.
What not to do
Mutilated and contaminated currency notes are not always the same. Currency that is contaminated, but not mutilated, should be sent to the servicing Federal Reserve Bank using Contaminated Currency Depositing procedures. However, any currency that is both contaminated and mutilated should be sent to the BEP’s Mutilated Currency Division. For more information on contaminated currency, review the Deposit Visual Reference Guide.
Need more info?
The BEP does not accept personal deliveries of mutilated currency at this time. For further information, including the form to use, packing directions and FAQs, please review How to Submit a Request for Mutilated Currency Examination (Off-site).
I'm a seasoned expert in financial operations, particularly in the intricate realm of currency handling and the procedures associated with mutilated currency. My knowledge is rooted in a comprehensive understanding of the protocols outlined by authoritative bodies such as the U.S. Department of the Treasury's Bureau of Engraving and Printing (BEP) and the Federal Reserve Banks. Allow me to illustrate my expertise by delving into the concepts embedded in the provided article.
The Ops Stop, a term used in the context, indicates a centralized hub for operational resources facilitated by the Federal Reserve Banks. This is likely a strategic initiative to streamline and consolidate essential services for organizations involved in financial transactions. The mention of a "one-stop shop" suggests a comprehensive resource center.
The focal point of the article is on handling mutilated currency, which, as defined, pertains to severely damaged dollars where only half or less of each note remains. The U.S. Department of the Treasury's BEP is the designated authority for dealing with such cases. The staggering statistic of nearly 30,000 claims and over $30 million in redeemed mutilated currency each year emphasizes the prevalence and importance of understanding the proper procedures.
The mention of burned, buried, or water-damaged currency as examples of mutilated currency provides insight into the diverse forms of damage that may occur. This requires the expertise of trained professionals at the BEP to assess and determine the value of the damaged currency.
The article emphasizes the responsibility of individuals with day-to-day cash handling duties, highlighting the likelihood of encountering mutilated currency in their institutions. The Federal Reserve's stance is clarified: while they do not accept deposits of mutilated currency, it is crucial for individuals to know how to handle such currency correctly.
The "what to do" section outlines the recommended procedure for handling mutilated currency. Sending it directly to the BEP's Mutilated Currency Division, along with an estimated value and an explanation of the damage, is the prescribed course of action. Contact information, including a toll-free number and a reference to the Mutilated Currency Redemption page on the BEP website, is provided for further guidance.
Conversely, the "what not to do" section draws attention to the distinction between mutilated and contaminated currency notes. If the currency is contaminated but not mutilated, it should be sent to the servicing Federal Reserve Bank using Contaminated Currency Depositing procedures. However, if the currency is both contaminated and mutilated, it should be directed to the BEP's Mutilated Currency Division. This differentiation is crucial in ensuring that the correct procedures are followed.
The concluding section invites those seeking more information to explore the BEP website for additional resources, including the specific form, packing instructions, and FAQs related to submitting a request for mutilated currency examination. The explicit mention that the BEP does not accept personal deliveries of mutilated currency underlines the importance of adhering to the outlined procedures.
In summary, the article provides a comprehensive guide for handling mutilated currency, supported by the expertise of the U.S. Department of the Treasury's Bureau of Engraving and Printing and the Federal Reserve Banks. The clarity in delineating what to do and what not to do ensures that individuals responsible for cash handling are well-informed and can navigate these situations effectively.
