As the sole authority to issue currency note and currency coin in Malaysia under section 5 of the Currency Act 2020 (CA), Bank Negara Malaysia (BNM)–
(a) is responsible for promoting the preservation of the quality and integrity of currency note and currency coin in circulation in accordance with section 17 of the CA;
(b) is responsible for promoting the reissuance and recirculation of currency note and currency coin in accordance with section 17 of the CA; and
(c) is empowered to issue standards and guidelines relating to currency note and currency coin pursuant to sections 61 and 62 of the CA respectively.
This policy document sets out–
(a) the criteria in determining the quality of currency note and currency coin in circulation;
(b) the standards to be adhered to by financial institutions (FIs) in processing currency note and currency coin, and recirculating them to the public;
(c) the standards to be adhered to by FIs in handling suspected counterfeit Malaysian currency in Malaysia when–
(i) deposited or exchanged by members of the public with the FIs over the counter;
(ii) discovered by the FIs during cash processing at FIs’ premises; or
(iii) discovered by the FIs at Self-Service Terminals;
(d) the requirements for FIs to record and report the discovery of suspected counterfeit Malaysian currency to its headquarters, BNM, Polis Diraja Malaysia (PDRM) and relevant persons;
(e) the timeline for FIs to lodge a police report with PDRM of the discovery of suspected counterfeit Malaysian currency; and
(f) the requirements for FIs to have competent staff, and to calibrate and perform attestation on their currency processing machines.
This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking
