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Chapter 6000

DISPOSITION OF FOREIGN CURRENCY AND CHECKS DRAWN ON FOREIGN BANKS (T/L 571)

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This chapter prescribes procedures for Federal agencies within the United States to dispose of foreign currency and checks drawn on foreign banks.

Section 6010 - Authority

The Secretary of the Treasury is authorized by 12 U.S.C. 265 to designate insured banks as both depositaries of public money and as financial agents of the Federal Government and to prescribe regulations for their fiscal agency responsibilities.

Section 6015 - Disposition of Checks

Whenever possible, agencies should require payment in U.S. dollars with checks or money orders drawn on or payable through U.S. financial institutions located in the United States.

6015.10 - Where To Make Check Deposits

Checks drawn on foreign banks and branches of U.S. banks, whether payable in U.S. dollars or in a foreign currency, should be endorsed (I TFM 5-2040) by the agency in the usual manner and transmitted for deposit along with the covering SF 215: Deposit Ticket, to Citibank Global Check Clearing Collections (see Contacts page for address).

If the deposit is to be mailed to Citibank, the SF 215 will be completed as prescribed in I TFM 5-3015 with the exception of Block 2, "Date Presented or Mailed to Bank." Leave Block 2 blank, but record the date mailed in Block 6, "Agency Use."

Checks drawn on foreign banks in U.S. dollars, which are payable through a bank in the United States, will have an American Banker's Association (ABA) routing and transit number in the upper-right corner; they may be Magnetic Ink Character Recognition (MICR) encoded with the U.S. bank's ABA routing and transit number at the foot on the left side of the check. These checks will not be deposited with Citibank, instead they will be included with the depositor's regular deposits made to a local depositary or Federal Reserve bank.

6015.20 - Checks Drawn on Foreign Banks Payable in U.S. Dollars

A single SF 215 will accompany all U.S. dollar foreign checks forwarded to Citibank on a single day. The SF 215 will be completed as prescribed in I TFM 5-3025, including the insertion of the U.S. dollar amount. The amount of deposit will be credited to Treasury's General Account (TGA) upon receipt by Citibank, and the confirmed copies of the SF 215 will be returned to the depositing officer.

The entire amount of the SF 215 is credited in the TGA upon receipt even though the proceeds of these types of checks may not be collected for several weeks. Therefore, agencies should be aware that they may receive an SF 5515: Debit Voucher, if there are uncollectible checks or collection charges (also referred to as lifting fees) on these checks (I TFM 5-6015.40).

6015.30 - Checks Drawn on Foreign Banks Payable in Foreign Currencies

A separate SF 215 will accompany each foreign currency check forwarded to Citibank. The SF 215 will be completed as prescribed in I TFM 5-3015, except the amount will be left blank. Upon collection of the item, Citibank will enter the U.S. dollar value on the corresponding SF 215 and return the confirmed copy to the depositing officer.

To comply with I TFM 5-2030, a description of each check must be maintained by the depositor to permit duplication in the event a check becomes lost, destroyed, or mutilated. Such a record should also include the foreign currency amount and medium of exchange for each check. If adequate records are available to provide identification through an audit trail, or if checks are microfilmed, the additional record maintenance is not necessary.

6015.40 - Uncollected Checks and Collection Charges

The minimum U.S. dollar amount of each check that will be accepted for deposit by Citibank is $5.00 (U.S.) for Canadian bank checks and $15.00 (U.S.) for other foreign bank checks. Agencies may set minimum check limitations higher because of substantial charges that may be incurred by the depositor.

All collection charges (lifting fees) incurred in connection with foreign checks (such as uncollectible check charges, exchange fees, and so forth), assessed after dollar credit has been given in the TGA, will be charged back to the depositor by an SF 5515 prepared by Citibank. Copies of the SF 5515 will be sent to the depositor as prescribed in I TFM 5-5020.

Section 6020 - Disposition of Foreign Currencies

6020.10 - Depositing Foreign Currency

U. S. Government Agencies that receive foreign currencies are instructed to contact the Bank of America to transmit foreign currency. Only one type of foreign currency may be included in the same deposit ticket.

a. When a government agency wants to convert foreign currency to U.S. dollars for deposit, the agency should telephone the Bank of America's Foreign Currency Trading Desk (see Contacts page for number). When answering, the foreign currency trader will ask for the 5-digit client number, 37539, and your Agency Location Code (ALC). The client number is unique to the Department of Treasury. Your Agency will be identified as an extension of the 5-digit client number using your ALC. After accessing the client number, the trader will create a sublist of branches/agencies using each agency's ALC and ask the caller for information to update the ALC profile (address, direct phone number, and contact name).

b. The foreign currency trader will immediately provide a foreign currency conversion rate and the U.S. dollar equivalent (USE). The Bank of America is able to provide the USE by contracting at that time to sell those foreign currencies for dollars. Therefore, if an agency should notice a difference in the amount or type of currency specified over the phone, or a delay in shipment, the agency must immediately contact the Bank of America and inform them of the correction/difference. For each type of currency a separate SF 215 (I TFM 5-3010) will accompany all foreign currency transactions forwarded by the agency.

The SF 215 will indicate the agency mailing date, the ALC, and the amount of the net dollar proceeds. In the agency use block of the SF 215, indicate the name of the foreign country, type and amount of foreign currency, and the 5-digit client number. Bank of America, upon sale of the currency, will give dollar credit through CA$H-LINK (see V TFM 1-1000, Appendix 1) and return the confirmed copy of the SF 215 to the depositing officer.

c. If an agency makes a Deposit Ticket error, the Bank of America will adjust the error by preparing an SF 5515 for a decrease in the amount, or an additional SF 215 for an increase in the amount. Bank of America will note an explanation of the adjustment on the SF 5515 or SF 215, including the original SF 215. Copies of the SF 5515 or SF 215 will be sent to the depositor as prescribed in I TFM 5-5020 and 5-3030.

d. For Foreign Currency found to be counterfeit, out of circulation, or outdated (having a lesser value), Bank of America will prepare an SF 5515 and note thereon the date of receipt, the currency note, and the serial number. A facsimile copy of the counterfeit will be sent on request.

6020.20 - Procedures for Mailing Transactions

a. For transactions under $100 (USE), the agency should use the U.S. Postal system. They should prepare a sturdy brown envelope, reinforced with standard shipping tape, and address it to the Post Office Box listed on the Contacts page. Agencies may obtain insurance, if desired, when shipping the currency. If insurance is not obtained and the parcel becomes lost, the loss will rest with the depositor (agency). Please do not mark or identify the contents.

b. For transactions between $100 and $5000 (USE), the envelopes should be prepared as described in paragraph a, but shipped via Registered Mail. This type of shipment is covered by insurance provided by the Bank of America.

c. For transactions over $5,000 (USE), the currency should be packaged and placed within a Brinks self-sealing shipping bag. Instructions for sealing the bags are on each bag. Should a bag be needed, the Bank of America will instruct Brinks to arrive for pick-up with a bag or forward bags via Express mail. Where service is not available by Brinks, an alternate method may be arranged. Package the currency tightly, enclose in a Brinks shipping bag, and address to Bank of America (see Contacts page for address).

6020.30 - Trading Hours

The Bank of America trading center is open 8:00 a.m. to 8:00 p.m. EST Monday through Friday. The trading center is closed only when both Canadian and U.S. holidays coincide; for example, New Year's and Christmas. Should Saturday access be required, prior arrangements can be made with Bank of America.

CONTACTS

For inquiries concerning this chapter, address questions to:

International Funds Branch
Banking Management Division
Financial Management Service

Department of the Treasury
3700 East-West Highway, Room 500A
Hyattsville, MD 20782
(Telephone 202-874-8610)

Send checks drawn on foreign banks and branches to:

Citibank N.A. Foreign Check Clearing
P.O. Box 15962
Wilmington, DE 19850-5962
Bank of America's Foreign Currency Trading Desk - 1-800-387-1012

Mail foreign currency under $5000 (USE) to:

Bank of America FCS-LAOC No. 4658
P.O. Box 54529
Los Angeles, CA 90054-0529

Address Brinks packages over $5000 (USE) to:

Bank of America
Foreign Currency Services
525 South Flower Street, B-Level
Los Angeles, CA 90071

TRANSMITTAL LETTER NO. 571 VOLUME I

TO: HEADS OF GOVERNMENT DEPARTMENTS, AGENCIES, AND OTHERS CONCERNED

1. PURPOSE

This transmittal letter releases a revised Contacts page for I TFM 5-6000: Disposition of Foreign Currency and Checks Drawn on Foreign Banks.

2. PAGE CHANGES

Remove Insert
Contacts page Contacts page

 

3. EFFECTIVE DATE

Upon receipt.

4. INQUIRIES

Questions concerning this transmittal letter should be directed to:

International Funds Branch
Banking Management Division
Financial Management Service
Department of the Treasury
3700 East West Highway, Room 500A
Hyattsville, MD 20782
(Telephone: 202 874-8610)

Date: March 7, 1997


(Signed)
Russell D. Morris
Commissioner