What is Act No. 136 / 2011 Coll.?

Act No. 136 / 2011 Coll., on the circulation of banknotes and coins and amending Act No. 6 / 1993 Coll., on the Czech National Bank, as amended — Act on the circulation of banknotes and coins and amending Act No. 6 / 1993 Coll., on the Czech National Bank, as amended.

When it became Act No. 136 / 2011 Coll. effectiveness?

Act No. 136 / 2011 Coll. became effective 01.07.2011.

Is Act No. 136 / 2011 Coll. still valid?

Yes, Act No. 136 / 2011 Coll. is still valid and effective.

Act No. 136 / 2011 Coll. - Act on the circulation of banknotes and...

136

THE LAW

of 27 April 2011

on the circulation of banknotes and coins and amending Act No. 6 / 1993 Coll., on the Czech National Bank, as amended

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

_

HLAVA I

GENERAL PROVISIONS

§ 1

Subject matter

This law builds upon the directly applicable provisions of the European Union1) and provides for

(a) the protection of domestic and foreign banknotes and coins against counterfeiting and counterfeiting; and

(b) other rules concerning circulation of domestic banknotes and domestic coins, rights and obligations relating to such circulation, as well as the exercise of public administration in this field.

§ 2

Definition of basic terms

(1) The local banknote is a banknote denominated in Czech crowns, issued by the Czech National Bank, which is valid or can be exchanged for valid; a banknote denominated in another currency which is valid or which can be exchanged for valid is a foreign banknote.

(2) The local coin is a coin denominated in Czech crowns, issued by the Czech National Bank, which is valid or can be exchanged for valid; a coin denominated in another currency which is valid or which can be exchanged for valid is a foreign coin.

(3) A commemorative banknote is a domestic banknote intended for collector's purposes.

(4) The commemorative coin is a domestic coin made of precious metals for collector's purposes.

(5) Domestic banknote

(a) the whole is a domestic banknote which is not missing any part of it or which is missing only part of the edge of the banknote;

(b) the whole banknote is a domestic banknote which is a continuous whole;

(c) worn in circulation is a whole and whole domestic banknote, which is scraped, soiled or wrinkled,

(d) the domestic banknote is not normally damaged;

1. which is burnt or greased,

2. which is dyed or discoloured, unless there is slight damage not to further circulation,

3. which is damaged by hygienically defective material,

4. which is damaged in such a way that it is not possible to verify its authenticity,

5. which is damaged by an anti-theft device,

6. which consists of more than 2 parts,

7. the pattern of which is illegible, deformed, perforated as a result of official deterioration or officially reprinted by writing;

8. whose area is less than or equal to 50%; or

9. missing the whole upper or lower edge,

(e) normally damaged is a domestic banknote which is damaged otherwise than by non-standard.

(6) Domestic coin

(a) the whole is a domestic coin, the area of which has not been reduced, or a coin made of several parts which is not missing any part of it;

(b) worn in circulation is a whole domestic coin, which is scratched or soiled;

(c) non-standard damage is the domestic coin;

1. which is cut,

2. which is made of several parts the individual parts of which are separated,

3. which is damaged by an anti-theft device,

4. whose pattern or relief is illegible; or

5. whose shape is deformed,

(d) normally damaged is a domestic coin which is damaged otherwise than by non-standard.

§ 3

Definition of certain other terms

For the purposes of this Act:

(a) by a credit institution, a bank, a foreign bank to the extent that it operates in the Czech Republic through a branch, and a savings and credit cooperative,

(b) a cash transaction for the acceptance of a deposit of domestic banknotes or domestic coins into an account held by a credit institution or the payment of domestic banknotes or domestic coins from that account, carried out at the place designated by the staff of the credit institution or persons acting on behalf or on behalf of the credit institution.

§ 4

Some activities of the Czech National Bank in managing the circulation of banknotes and coins

(1) Czech National Bank

(a) decide on the withdrawal of domestic banknotes and domestic circulation coins and non-standard or commonly damaged (hereinafter referred to as "banknotes and coins unfit for circulation") from circulation, the withdrawn domestic banknotes and the domestic coins are destroyed and replaced by domestic banknotes and coins suitable for circulation;

(b) process (§ 7 (4)) and store domestic banknotes and coins (hereinafter referred to as "domestic banknotes and coins");

(c) examine the authenticity of and technical observations made on suspicious banknotes and coins;

(d) store banknotes and coins which are counterfeit or altered.

(2) The Czech National Bank may contractually entrust the activities referred to in paragraph 1 (b) to a credit institution performing cash operations or domestic banknote and coin processors (§ 15 (2)); The responsibility of the Czech National Bank for processing and storing domestic banknotes and coins is not affected by this.

(3) The Czech National Bank performs the functions of the National Counterfeit Centre, the National Counterfeit Analysis Centre and the National Counterfeit Analysis Centre (2).

HLAVA II

CIRCUMSTANCES OF TERM BANKNOTES AND MINES

Díl 1

Receipt and exchange of domestic banknotes and coins and their output and return to circulation

§ 5

Receipt of domestic banknotes and coins

(1) Everyone is obliged to accept domestic banknotes and coins without restriction, unless they are entitled to refuse to receive them.

(2) Receipt of domestic banknotes or coins may be refused

(a) a credit institution carrying out cash operations, where the banknotes or coins denominated in the crowns of the Czech National Bank declared invalid and the period of time laid down by the Act governing the activity and status of the Czech National Bank3 has expired, during which it is obliged to exchange them,

(b) each with the exception of the Czech National Bank and the credit institution carrying out cash operations, in the case of commemorative banknotes, commemorative coins or domestic banknotes or coins declared invalid by the Czech National Bank,

(c) each with the exception of the Czech National Bank and the credit institution carrying out cash transactions, where there are more than 50 domestic coins in one payment.

(3) When receiving domestic banknotes or coins, the Czech National Bank and the credit institution carrying out cash operations shall be entitled to require that the accepted domestic banknotes and coins are sorted by denomination and, where justified by their number, to be packed in the specified manner.

(4) Any person who accepts domestic banknotes or coins as a performance of his own claim may not seek payment for their acceptance.

(5) Unless otherwise specified by agreement between the payer and the payee of domestic banknotes and coins, the payee shall assume responsibility for their correct number and authenticity. This does not apply if the beneficiary has not been able to check their correct number and authenticity.

§ 6

Exchange of domestic banknotes and coins

(1) The Czech National Bank and the credit institution carrying out treasury operations shall exchange:

(a) domestic banknotes and coins for domestic banknotes and coins of other denominations;

(b) domestic banknotes and circulation-worn coins and domestic banknotes and coins commonly damaged for domestic banknotes and coins suitable for circulation;

(c) domestic banknotes and coins declared invalid by the Czech National Bank as valid domestic banknotes and coins for a period determined by law governing the activity and status of the Czech National Bank3); and

(d) commemorative banknotes or commemorative coins for domestic banknotes or domestic coins which are not commemorative banknotes or coins.

(2) The exchange referred to in points (b) to (d) of paragraph 1 may be made by transferring or crediting, at the request of the person who submitted the domestic banknotes or coins for exchange, an amount corresponding to their nominal value to the account indicated by him.

(3) The Czech National Bank and the credit institution carrying out cash operations are required to make the exchange referred to in paragraph 1 (a) and (b) up to 100 pieces of one denomination free of charge if the banknotes and coins are sorted by denomination.

(4) The Czech National Bank and the credit institution carrying out cash operations are required to make the exchange referred to in paragraph 1 (c) and (d) free of charge if the banknotes and coins are sorted by denomination.

§ 7

Common provisions for the reception, delivery, return and exchange of domestic banknotes and coins

(1) The Czech National Bank processes domestic banknotes and coins accepted from circulation in accordance with established procedures for sorting domestic banknotes and coins and distinguishing between banknotes and coins denominated in the crowns of Czech invalid, false or domestic banknotes and coins unfit for circulation (hereinafter referred to as "processing standards") prior to their issue from their stocks. Domestic banknotes and coins that are suspected and banknotes and coins denominated in Czech crowns which are invalid must not be put into circulation.

(2) A credit institution performing a cash operation and a processor of domestic banknotes and coins shall process domestic banknotes and coins accepted from circulation in accordance with the processing standards before returning them to circulation. Domestic banknotes and coins that are suspected and coins that are denominated in Czech crowns which are invalid must not be returned to circulation.

(3) Legal persons other than those referred to in paragraph 1 or 2 and exchange agents shall check the authenticity and validity of domestic banknotes and coins returned to circulation. Domestic banknotes and coins that are suspected and coins that are denominated in Czech crowns which are invalid must not be returned to circulation.

(4) The processing of domestic banknotes and coins is an activity consisting of sorting them by denomination, checking their number, checking their validity and authenticity and classifying them into domestic banknotes and coins suitable for circulation, and domestic banknotes and coins unfit for circulation.

(5) Recovery for the purposes of this Act shall mean any expenditure operation, except:

(a) expenditure operations of the Czech National Bank,

(b) the deposit of domestic banknotes or coins into an account held by the Czech National Bank or by a credit institution carrying out cash operations;

(c) payment of domestic banknotes or coins to the Czech National Bank, a credit institution performing cash operations or processors of domestic banknotes and coins for processing.

(6) A credit institution accepts and exchanges domestic banknotes and coins in all its establishments in which it carries out cash operations. For security reasons, a credit institution may limit the amount of domestic banknotes and coins received or exchanged in certain establishments on a case-by-case basis. The credit institution shall inform the undertakings concerned in writing of this restriction.

(7) The implementing regulation lays down the processing standards referred to in paragraphs 1 and 4, the number of domestic banknotes and coins in relation to the requirement for their packaging and the method of their packaging as referred to in Article 5 (3).

Díl 2

Treatment of domestic banknotes and coins in special cases

§ 8

Treatment of domestic banknotes and coins unfit for circulation

(1) The legal person and currency changer do not return domestic banknotes and coins unfit for circulation and pass them to the Czech National Bank.

(2) A natural person, with the exception of an exchange agent, returns domestic banknotes and circulation-worn coins and normally damaged coins back into circulation.

(3) The implementing legislation provides for a description of the rate of wear and damage to domestic banknotes and coins referred to in paragraphs 1 and 2 and the method of transmission of domestic banknotes and coins unfit for circulation to the Czech National Bank pursuant to paragraph 1.

§ 9

Receipt of damaged domestic banknotes and coins

(1) Commonly damaged domestic banknotes and coins

(a) the Czech National Bank receives and does not put back into circulation from its stocks;

(b) a credit institution carrying out cash operations receives and does not return to circulation if:

1. are whole; or

2. they are whole banknotes or banknotes consisting of no more than 2 parts which are undoubtedly part of each other and the total area of such banknotes is more than 50%;

(c) a legal person other than those referred to in points (a) and (b), and an exchange agent shall accept and not return them to circulation if they are whole; if they are not whole, they may refuse them,

(d) a natural person, with the exception of the transponder, may refuse to accept it.

(2) Non-standard damaged domestic banknotes and coins

(a) The Czech National Bank shall be detained without compensation;

(b) the credit institution carrying out cash operations and the processor of domestic banknotes and coins shall be detained without compensation and transmitted to the Czech National Bank;

(c) a person other than those referred to in (a) or (b) may refuse to accept.

(3) The implementing legislation sets out the procedure for the retention of non-standard damaged banknotes and coins, the procedure for their transmission to the Czech National Bank and the formalities for confirmation of the detention of non-standard damaged banknotes or coins.

§ 10

Exchange and compensation of damaged domestic banknotes and coins

(1) The Czech National Bank and a credit institution carrying out cash operations will exchange, free of charge, normally damaged domestic banknotes and coins for undamaged domestic banknotes and coins if:

(a) are whole; or

(b) the banknotes are banknotes with a total area of more than 50%, which are solid or which consist of not more than 2 parts, undoubtedly belonging to each other; where there is doubt as to whether each part of the banknote belongs together, each part shall be assessed separately.

(2) For commonly damaged commemorative banknotes or commemorative coins, the Czech National Bank and credit institutions performing cash operations provide compensation in domestic banknotes and coins which are not commemorative banknotes or commemorative coins.

(3) Non-standard domestic banknotes and coins are not exchanged. If non-standard damaged domestic banknotes or coins have been handed over to the Czech National Bank, the Czech National Bank may, in justified cases, in particular related to a natural disaster or other event seriously affecting or threatening property or as a result of a criminal offence, provide compensation at the request of the person who handed them over to it or to whom they have been detained.

(4) The exchange referred to in paragraphs 1 and 2 may also be effected by transferring or crediting, at the request of the person who submitted the domestic banknotes or coins for exchange, the relevant amount to the account indicated by him. The refund referred to in paragraph 3 shall be granted in such a way as to pay the amount in respect of undamaged domestic banknotes or coins, other than commemorative banknotes or commemorative coins, or to transfer or credit the amount in respect of the account indicated by that person, to those who have applied for the refund. If the applicant fails to pay the compensation, the Czech National Bank will keep it and register it in a separate account. If those who have been detained for non-standard damage to domestic banknotes or coins, or those who have applied for a refund, do not submit for reimbursement or reimbursement within 3 years of the date of their detention or application for reimbursement, the amount corresponding to their nominal value shall be the Czech National Bank.

(5) For a period of 15 years, the Czech National Bank has kept records of persons who have submitted, entered into a non-anonymous facility or detained non-standard damaged domestic banknotes and coins, separately from data on non-standard damaged domestic banknotes and coins. The record shall include identification data of these persons, data on detainees of non-standard damaged domestic banknotes and coins and data relating to the circumstances of detention of such non-standard damaged domestic banknotes and coins. Personal data from the register may be further processed only for the purpose of investigating and detecting crime.

(6) The implementing legislation lays down a procedure for the exchange of domestic banknotes which are not whole or whole.

Díl 3

Treatment of banknotes and coins through self-service technical devices

§ 11

(1) Self-service technical equipment used to provide services or to sell goods which receive, exchange or return domestic or foreign banknotes and coins ("anonymous equipment") may be operated if:

(a) recognise the authenticity and validity of accepted domestic and foreign banknotes and coins;

(b) reject suspected and invalid banknotes and coins; and

(c) return to circulation domestic banknotes which are not processed in accordance with processing standards.

(2) A self-service technical facility through which the disposition of funds registered in an account held by a payment service provider consisting of the receipt, exchange or payment of domestic or foreign banknotes or coins ("non-anonymous devices") can be operated if:

(a) recognise the authenticity and validity of accepted domestic and foreign banknotes and coins;

(b) identify the account holder and specify the transaction executed;

(c) retain suspicious banknotes, reject suspicious coins and return invalid banknotes and coins and domestic banknotes which are not processed in accordance with processing standards.

(3) The implementing act lays down the scope of the specification of the transaction carried out pursuant to paragraph 2 (b).

(4) Paragraphs 1 and 2 are without prejudice to the requirements laid down in the directly applicable European Union5 Regulation) for the operation of anonymous devices and non-anonymous devices receiving euro banknotes or coins and for the retention of euro banknotes or coins by such devices.

HLAVA III

PROTECTION OF THE TERM AND FOREIGN BANKNOTES AND MINES BEFORE ALLOWANCE AND AMENDMENT

§ 12

Handling suspicious banknotes and coins

(1) Any person may refuse to accept banknotes or coins for which there are reasonable grounds for suspecting that they are falsified or amended ("suspicious banknotes or coins'), unless he is obliged to detain them. An amended banknote or coin is a domestic or foreign banknote or coin which has been tampered with in such a way that it is capable of producing a false idea of its validity or of its nominal value.

(2) Legal person and currency changer

(a) retain suspicious banknotes or coins without compensation;

(b) invite those who have submitted suspicious banknotes or coins to prove their identity, to record their personal data and to issue confirmation of the detention of suspicious banknotes or coins; the person who has submitted suspicious banknotes or coins is obliged to comply with the identity call;

(c) transmit suspicious banknotes or coins to the Czech National Bank without undue delay;

(d) transmit the copy to the Czech National Bank of suspicious banknotes or coins; and

(e) transmit the copy to the police of the Czech Republic without undue delay.

(3) The Czech National Bank shall proceed with the treatment of suspected banknotes and coins referred to in paragraph 2 (a), (b) and (e). Paragraph 2 (c) and (d) shall apply mutatis mutandis to the Police of the Czech Republic in accordance with the Act on the Police of the Czech Republic. Paragraph 2 (c) to (e) applies mutatis mutandis to the Customs Administration of the Czech Republic in the procedure under the Customs Administration Act.

(4) Where suspected banknotes or coins have been handed over to their payee in a closed box or have been placed in a non-anonymous facility, the payee or the operator of the non-anonymous facility withholds such banknotes or coins, it shall identify the transferee or account holder, issue him with a certificate of detention of suspicious banknotes or coins and proceed further in accordance with paragraph 2 (c) to (e). Paragraph 2 (a) and (c) to (e) shall also apply mutatis mutandis to credit institutions carrying out cash operations and domestic banknote and coin processors, ensuring suspicious banknotes or coins when processing their own cash.

(5) For a period of 15 years, the Czech National Bank has kept records of persons who have submitted suspicious banknotes or coins or placed suspicious banknotes in non-anonymous devices, separately from data on suspicious banknotes and coins. The record shall contain the identification data of those persons, the data on suspected banknotes and coins retained and the data relating to the circumstances of the detention of those suspected banknotes and coins. Personal data from the register may be further processed only for the purpose of investigating and detecting crime. If it turns out that the banknotes or coins seized are genuine, the Czech National Bank shall without undue delay delete from the register the person who submitted the suspicious banknotes or coins into a non-anonymous device or detain them.

(6) The implementing legislation provides for a procedure for the retention of suspicious banknotes and coins, for their transmission to the Czech National Bank and for the formalities for confirmation of the detention of suspicious banknotes or coins.

§ 13

Verification of authenticity of banknotes and coins by the Czech National Bank

(1) No refund shall be granted for counterfeit or altered banknotes and coins.

(2) If it turns out that the suspected banknotes or coins held are genuine, the Czech National Bank will return them without undue delay to whom they have been detained according to confirmation. The Czech National Bank may provide compensation for suspected domestic banknotes and coins retained by paying, transferring or crediting the amount corresponding to their nominal value in cash to those who are confirmed to have been detained.

(3) If it turns out that the suspected banknotes or coins held are genuine, but cannot be returned or replaced in accordance with paragraph 2, the Czech National Bank shall retain them and register them in a separate account. If those who have been suspected of being detained, as confirmed, do not claim their refund or reimbursement within 3 years of the date of their detention, the banknotes or coins or the amount corresponding to their nominal value shall be credited to the Czech National Bank.

(4) If it turns out that the suspected domestic banknotes or coins held are genuine but not standard damaged, the Czech National Bank will detain them without compensation.

§ 14

Reproduction of banknotes and coins

(1) Substantial or intangible reproduction of domestic or foreign banknotes or coins and objects imitating them by modification may only be made if the technical criteria laid down in the implementing legislation or in the directly applicable European Union Regulation on medals and tokens similar to euro coins (4) are met.

(2) Substantial or intangible reproduction of domestic or foreign banknotes or coins and objects imitating them by modification may only be sold, imported, preserved or disseminated if they meet the technical criteria laid down in the implementing legislation or in the directly applicable European Union Regulation on medals and tokens similar to Euromins4).

HLAVA IV

PROCESSING OF TERM BANKNOTES AND MINES AND AUTHORISATIONS FOR THE ACTIVITIES OF THE PROCESSER OF TERM BANKNOTES AND MINES

§ 15

(1) Only domestic banknotes and coins for others may be processed by:

(a) Czech National Bank,

(b) a credit institution carrying out treasury operations; and

(c) the processor of domestic banknotes and coins.

(2) The processor of domestic banknotes and coins is the one who is entitled to process domestic banknotes and coins for another on the basis of a permit for the processor of domestic banknotes and coins granted by the Czech National Bank (hereinafter the "permit").

§ 16

(1) The Czech National Bank shall authorise the applicant,

(a) which is a public limited company, a limited company or a public undertaking;

(b) which has both its registered office and its registered office in the Czech Republic;

(c) whose statutory authority, a member of the statutory body and the person directly managing its business (hereinafter referred to as the "manager") fulfil the general conditions of business activity under the law governing business business;

(d) the beneficial owner of which, under the law governing the registration of beneficial owners ("beneficial owner"), is a person of integrity,

(e) whose management and control system complies with the requirements laid down by this law;

(f) which is able to properly ensure the protection of domestic banknotes and coins entrusted to it for processing,

(g) which is equipped with domestic banknote and coin processing facilities which meet the processing standards and are located in the Czech Republic; and

(h) submit draft internal rules governing the management and control system.

(2) For the purposes of this law, a person who has been lawfully convicted of a criminal offence committed intentionally when the offence has been committed in connection with a business, unless he is looked at as if he had not been convicted.

(3) Paragraph 1 (b) does not apply where an international contract, which is part of the legal order, implies an obligation to allow an applicant established outside the Czech Republic to operate in the Czech Republic as a processor of banknotes and coins under similar conditions as those of persons established in the Czech Republic.

§ 17

(1) An application for authorisation may be made only on the prescribed form to which the applicant shall accompany the documents certifying compliance with the conditions set out in Article 16 (1). The model of the form and the content of its annexes shall be laid down in the implementing legislation.

(2) The decision on the application for authorisation shall be taken by the Czech National Bank within 3 months of the date of initiation of the procedure. If the procedure has been suspended at the same time as the request to remedy the deficiencies of the application, that period shall start to run again from the date on which the suspension ended.

§ 18

(1) The processor of domestic banknotes and coins shall notify the Czech National Bank of any change without undue delay

(a) the particulars given in the application for authorisation or in the annexes thereto on the basis of which the authorisation was granted; together with the notification of changes to the management, changes to the shareholder and the beneficial owner, it shall demonstrate compliance with the conditions set out in Article 16 (1) (c) and (d) by those persons; and

(b) internal rules governing the management and control system.

(2) The notification referred to in paragraph 1 may be made only on a prescribed form to which the notifier shall accompany documents certifying the change of the particulars given in the application for an authorisation or its annexes on the basis of which the authorisation was granted. The model of the notification form and the content of its annexes shall be laid down in the implementing legislation.

§ 19

(1) The authorisation expires on

(a) the cancellation of the processor of domestic banknotes and coins;

(b) the acquisition of legal power of a decision on the bankruptcy of a processor of domestic banknotes and coins or the acquisition of a decision to reject an insolvency application for a lack of the assets of a processor of domestic banknotes and coins.

(2) The Czech National Bank shall withdraw the authorisation if:

Citation	Act No. 136 / 2011 Coll., on the circulation of banknotes and coins and amending Act No. 6 / 1993 Coll., on the Czech National Bank, as amended
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	25.05.2011
Effective from	01.07.2011
Effective until	-
Status	Valid

Act No. 136 / 2011 Coll.

Act on the circulation of banknotes and coins and amending Act No. 6 / 1993 Coll., on the Czech National Bank, as amended

Contents