Counterfeited and damaged money

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1. In order to check a suspicious banknote, it is necessary to be informed about security features of KM banknotes (link to https://cbbh.ba/Content/Read/645). Most security features can be checked without using any equipment, so anyone can check them. Besides, there are features which are examined by appropriate equipment such as magnifying glasses, UV lamps etc.., which are used by banks and other institutions. The Central Bank of Bosnia and Herzegovina informs the public about all such features when putting into circulation new series of banknotes. In case of suspicion, it is recommended to check as many security features of the banknote as possible. Counterfeited KM banknotes are mainly of poor quality, i.e. they do not have security features, or those are poorly copied. In case of copied features, the differences may be identified in the easiest way by comparing them with features of another banknote which is not suspicious.

Counterfeited coins can differ visually from authentic ones by dimensions, weight, material, magnetic features, details in minting etc... 

2. Besides production and putting into circulation counterfeits, failure to report counterfeits and their further circulation is also punishable. If citizens know or suspect that they have counterfeits, they are obliged to report it to the institutions of the Ministry of Interior. The information from whom, where and when they have obtained a counterfeit can be very important in finding persons distributing counterfeits.

3. Counterfeits are worthless and cannot be exchanged.

4. Damaged KM banknotes are banknotes that are torn into two or more pieces, the parts of which are or can be glued back together to form a whole note; the banknotes damaged in a way that one or more of their parts are missing and the banknotes damaged by grease, dye and similar, or partly burned, burnt through, corroded or faded. Depending on the degree of damage, citizens can have damaged KM banknotes replaced in commercial banks or the Central Bank. Commercial banks will exchange damaged KM banknotes if the applicant (natural or legal person) presents more than 60% of KM banknote which is in one piece and has at least one serial number or if it is in two or more parts and has both serial numbers. Commercial bank will exchange KM banknotes in the full amount and without a fee. If the damaged KM banknote does not meet the conditions for exchange in commercial banks, commercial bank will inform the applicant that the application for the exchange of damaged KM banknotes should be submitted to the Central Bank. The application is submitted personally, in the Form “Application for the exchange of damaged KM currency”. The application can be submitted to the Cash Management Department of the Sector for Monetary Operations, Management of Foreign Exchange Reserves and Cash of the Head Office of the Central Bank in Sarajevo or the field vault of the Main Bank of Republika Srpska of the Central Bank of BH in Banja Luka. The applicant (natural or legal person), when submitting damaged KM banknotes for replacement, is obliged to state the origin of KM banknotes, the way how they have been damaged and what has happened with the missing parts, to describe the type of stain, contamination and other damage of the submitted KM banknote. With the filled in Application Form, the applicant is obliged to submit a copy of personal ID card and the evidence confirming the statements from the Application. The Central Bank determines authenticity and estimates damage, i.e. determines if there are grounds for the replacement of damaged KM banknotes in each individual case on the basis of the submitted Application with enclosed documentation. If the Central Bank finds there is a basis for the replacement of damaged KM banknotes, it will carry out the replacement. The replacement is carried out in the full amount and without a fee. If, after completing the evaluation, the Central Bank finds there is no basis to replace the damaged KM banknotes, such banknotes are withdrawn and destroyed without a reimbursement to the owner according to the Law on the Central Bank of Bosnia and Herzegovina, which the applicant is informed about in writing.

Damaged KM coins are coins the authentic form of which has been changed due to damage (one or more parts is missing, it is chipped, distorted or corroded), the coins damaged by grease, dye, corrosion or partly burnt. Commercial banks will replace damaged KM coins if entire items of KM coins which can be identified as authentic, have been submitted for replacement. Commercial bank will exchange KM coins in their full amount and without a fee. The Central Bank, through its field vaults, takes over from commercial banks damaged KM coins and replaces them by crediting commercial banks’ reserve accounts in the full amount and without a fee. The procedure of replacement of damaged KM coins in case damaged KM coins do not meet the conditions for replacement in commercial banks, and the applicant presents more than 60% of its surface, is carried out in the Central Bank. More at: https://www.cbbh.ba/Content/Read/1090?lang=en