FIRST SCHEDULE
FORMS
| Form CH 1 (r. 4(1)) |
| THE CENTRAL BANK OF KENYA ACT |
| (Cap. 491) |
| APPLICATION FOR LICENCE TO USE CASH DEFACEMENT DEVICE |
| 1. Name of Company ................................................................................................................. |
| 2. Date and country of incorporation ...................................................................................... |
| 3. Certificate of incorporation No. ........................................................................................... |
| 4. Physical and Postal address of head office: |
| | (a) City/Town .................................................................................................................. |
| | (b) L.R. No. ....................................................................................................................... |
| | (c) Street. ........................................................................................................................... |
| | (d) Building. ..................................................................................................................... |
| | (e) Postal address .................................... | Code ......................................... |
| 5. Association membership ....................................................................................................... |
| 6. Licence application for the period: ...................................................................................... |
| 7. Details of branch network and number of years each has conducted business: |
| Branch Name | No. of years in operation |
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| 8. Particulars of Directors: |
| Name | Nationality | I.D/ Passport No. | Date of appointment |
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| | (Profession, Other directorships) |
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| | Significant shareholders, financial status) |
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| Name | Nationality | I.D/ Passport No. | Date of appointment |
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| 9. Particulars of Senior officers both in the head office and Branches: |
| Name | Nationality | I.D/ Passport No. | Designation/ Branch |
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| 10. Details of Devices to be used |
| | Device type (Dye or Smoke.): ................................................... |
| | Device Model .............................................................................. |
| | Source of Device (Manufacturer) ............................................. |
| 11. Declaration (By Chief Executive Officer): |
| | I, the undersigned, hereby declare- |
| | (a) THAT the particulars set out herein are true and correct to the best of my knowledge and belief; and |
| | (b) THAT if licensed, I shall use cash defacement devices in accordance with the Central Bank of Kenya Act and any regulations, guidelines or directive as may from time to time be issued by the Central Bank of Kenya. |
| Name ................................................................................................ |
| Signature ........................................ |
| Date ................................................ |
| Note: |
| | 1. Please attach certified copies of |
| | | 1. certificate of incorporation; |
| | | 2. certification by Kenya Bureau of standards ,Government Chemist and National Environmental Management agency or certification from other similar internationally recognized organization; and |
| | | 3. valid operating licence. |
| | 2. Replacement of any of the senior operating officers must be notified to the Central Bank and particulars of new officers submitted to the Central Bank immediately. |
| Form CH 2 (r.5 (5) & (7)) |
| CENTRAL BANK OF KENYA ACT |
| (Cap. 491) |
| APPLICATION FOR REPLACEMENT OF BANKNOTES STAINED THROUGH CASH DEFACEMENT DEVICE |
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| 1. IMPORTANT INFORMATION TO THE CLAIMANT |
| | (1) Part A - to be completed by the claimant. |
| | (2) Part B - to be completed by the claimant. |
| | (3) Part C - to be completed by the commercial Bank. |
| | (4) Part D - to be completed by the Central Bank |
| | A. DETAILS OF THE CLAIMANT (BLOCK LETTERS) |
| | | 1. Name of company ............................................................................. |
| | | 2. Physical address ................................................................................ |
| | | 3. Telephone No .................................................................................... |
| | | 4. Postal address ................................................................................... |
| | | 5. Company Registration No .............................................................. |
| | | 6. Name of authorised official ............................................................ |
| | | 7. ID or Passport Number ................................................................... |
| DENOMINATION | KSH 50 | KSH 100 | KSH 200 | KSH 500 | KSH 1000 |
| NUMBER OF PIECES | | | | | |
| VALUE | | | | | |
| SERIAL NUMBERS | | | | | |
| (If more space is required use a separate page and attach it to this claim form). |
| | B. STATE HOW DYE-STAINED BANK NOTES WERE STAINED |
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| ..................................................................................................................................................................... |
| ..................................................................................................................................................................... |
| Signature/Stamp of Claimant: |
| Date: ..................................................................... |
| | C. CONDITIONS OF EXCHANGE |
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| Claimants must ensure that they have read all the conditions for exchange set out below and (if claiming through a licensed institution) that they have been handed an acknowledgement of receipt (Part C) for the claim. |
| 1. A certified copy of the claimant's certified copy of Company Registration Certificate must accompany this claim form. |
| 2. The sworn declaration in the prescribed form must be completed in respect of all claims. |
| 3. The Bank is not legally bound to replace any dye-stained bank notes either in whole or in part. Any replacement is strictly at the discretion of the Bank. |
| 4. The Bank may at its discretion call upon an applicant to furnish a bond of indemnity in respect of any amount refunded. |
| 5. All dye stained bank notes including remains or fragments, no matter how small, shall accompany the application. |
| 6. The Bank shall not accept claims via the post, and shall accept claims made by . means of personal delivery at the Bank, its branches or commercial bank. Should a claimant utilise the postal service for delivery of dye-stained bank notes, these notes will be forfeited to the Bank. |
| 7. The claimant accepts that it voluntarily cedes the bank notes in its possession to the Bank and that the Bank shall handle this claim according to the policies laid down for replacement of dye-stained bank notes or even the forfeiture thereof. |
| DECLARATION |
| I declare that the above is true and correct and that I have not withheld any information regarding this application. I have read all the conditions for exchange and I understand that any false disclosure can lead to prosecution. |
| I, .................................................. do solemnly and sincerely declare that I am the lawful claimant of the abovementioned dye-stained tank notes and make this solemn declaration, conscientiously believing it to be true. |
| Signed: ........................................................ |
| The deponent has acknowledged that he or she knows and understands the contents of this declaration, which he or she has declared before me at ........... this ............. day of ................................. 20 ......................... |
| ...................................................................................................... |
| Commissioner for Oaths |
| RECEIVING BANK |
| NAME OF BANK .......................................................................................................................... |
| Branch: .......................................................... | Branch Code ....................... |
| Confirmation of circumstances in which the dye-stained bank notes are declared to have been so stained— |
| ........................................................................................................................................................ |
| ........................................................................................................................................................ |
| Name of claimant: ...................................................................... |
| Amount claimed: ........................................................................ |
| Signature of authorised Bank official | Date .............................................. |
| Bank stamp | Date .............................................. |
| ACKNOWLEDGEMENT OF RECEIPT OF DYE-STAINED BANK NOTES CLAIM |
| I, ............................................. acknowledge receipt of a dye-stained bank notes claim on a collection basis. |
| From (name of claimant or commercial Bank): ......................................................................... |
| Name of Authorised official of claimant or Bank ..................................................................... |
| Identity or Passport number: ....................................................................................................... |
| Amount received: .......................................................................... |
| At ................... this ........................................ day of ........................... 20................................. |
| DENOMINATION | KSH 50 | KSH 100 | KSH 200 | KSH 500 | KSH 1000 |
| NUMBER OF PIECES | | | | | |
| VALUE | | | | | |
| Signature N.B: Claimants must ,ensure that they have read all the conditions for exchange set out below and (if Claiming through a licensed institution) that they have been handed an acknowledgement of receipt (Part C) for the claim. |
| ............................................................................................... Date .......................... |
SECOND SCHEDULE
TERMS AND CONDITIONS OF USE OF CASH DEFACEMENT DEVICES
1. Applicability
(1)These conditions apply to the use of cash defacement devices by licensed cash-in-transit operators.(2)This document is provided for the information of cash in transit operators, the Bank and other cash in transit clients.(3)Cash in transit operators shall strictly adhere to all obligations and other compliance matters imposed under these terms and conditions and any breach of such obligations shall be breach of the licensing obligations and for which penalties shall be levied.2. Obligations of CIT Operators
In addition to other obligations set out in these Regulations, cash-in-transit operators undertake to?(a)abide by these Regulations and the terms and conditions of use of cash defacement devices;(b)train their staff and regularly update them on the technology and other aspects of cash defacement devices;(c)alert the police, the Bank and other stakeholders of an incident of robbery or attack leading to explosion of cash in transit boxes and staining of banknotes;(d)fully comply with manufacturer’s specifications relating to cash in transit boxes, including load capacity, handling procedures and maintenance;(e)carry out public education and awareness of the cash in transit boxes, their role as security devices in the transportation of cash, the recognition of dye-stained notes and what recourse to take on finding such notes;(f)with the approval of the Bank, regularly update themselves with the technology and safety standards of the devices and upgrade accordingly with the necessary certifications; and(g)abide by any other requirement or obligation that the Bank may from time to time impose.3. Specifications and standards of cash defacement devices
(1)Every cash defacement device proposed to be used by a cash in transit operator shall meet the following minimum requirements—(a)safety: the device shall be certified as safe for use in the public domain by Kenya Bureau of Standards or alternatively, any other internationally recognized standards organization and any chemical or dye used to disfigure the notes shall not be harmful to the public and shall be certified by the Government Chemist, the National Environment Management Agency or other similar recognized organization at the cost of the applicant;(b)reliability: the functionality of the cash defacement device shall be tested and certified for reliability by the Kenya Bureau of Standards;(c)stability: the cash defacement device shall not, under normal operating circumstances, activate accidentally; and(d)industry standards: the device shall meet such industry standards and criteria, including electrical, mechanical and other capabilities specified by the Kenya Bureau of Standards from time to time.(2)Approved cash defacement devices shall be used in accordance with the manufacturer’s specifications including, but not limited to, those related to the packing of notes, the type of wrapping used, and the amount of notes to be contained within a single device.(3)Approved cash defacement devices shall have the capacity to cause all, notes to be stained with coverage of at least not less than thirty per centum of the surface of each note.(4)The device shall have the capability of?(a)staining the notes in such a manner that the Bank will be able to verify the denominations affected; and(b)establishing the legitimacy of the notes following a defacement by enabling notes that are dye-stained to be easily recognizable as having been the subject of crime unless proven to have been dyed as a result of an accidental trigger to the device.(5)The dye used in all devices licensed within the country shall be of a uniform agreed colour and as specified by the Bank and shall be indelible.(6)The Bank shall not give value for any notes stained by a cash defacement device whose design and use was not approved under the Regulations.(7)The operation of any cash defacement device shall be demonstrated to the Bank, as a condition of consideration of the device for approval.(8)The Bank shall approve the use of any cash defacement devices.(9)The Bank shall approve the use of cash defacement devices, by cash in transit operators in the transportation of cash between?(a)the Central Bank and its branches or cash centres;(b)the Central Bank and a commercial bank;(c)a commercial bank and its branches or automated teller machine;(d)a commercial bank and its customer or a customer and the commercial bank;(e)customer and its branches; or(f)any other scenario approved by the Bank.(10)A new device replacing a licensed cash defacement device shall be subjected to the same approval process.4. Reporting of robberies or heists
(1)In the event of robbery where notes packed in a cash in transit box are stolen, the cash in transit operator shall immediately communicate with the police and the Bank and report the event within twenty four hours.(2)The report of robbery shall provide all relevant information including details of the geographical area of attack, the motor vehicle used by the cash in transit operator, amount of money in transit and records of the cash in transit operator relating to the transaction.(3)the Bank shall, upon receipt of the report of robbery issue a press release at the cost of the cash in transit operator giving full details of the robbery and alert the public not to use the notes and to call upon the public to surrender all stained notes recovered within the locality of the robbery to the police, the Central Bank or the nearest licensed financial institution.5. Claims
(1)A financial institution receiving any dye-stained notes from any person shall not exchange the notes with clean notes.(2)All dye-stained notes shall be surrendered within fourteen days from the date of receipt together with the supporting surrender form to the Bank.(3)Commercial banks shall not mix dyed notes with fit or unfit notes and any dye-stained notes found in bulk cash deposited by commercial banks shall be treated as shortages, no value will be given and the applicable discrepancy charges will be levied.6. Destruction of dye-stained notes
Dye-stained notes shall be kept in the Bank’s vaults for a period not exceeding six months unless a longer period is necessary owing to pending court proceedings and the Bank shall thereafter destroy such notes in accordance with the existing procedures.7. Public education
(1)Cash in transit operators using cash defacement devices and seeking approval of these devices shall be required to educate the public, on an ongoing basis, to inform them of the operations of the devices, nature of defaced cash that results from explosion of the devices, where to report any such notes and any other relevant information.(2)All material, content and other tools of proposed public education prepared by a cash in transit operator shall be submitted to the Bank for vetting and approval.(3)The Bank shall carry out independent public education on all aspects of the cash defacement devices but this shall be complimentary to and shall not absolve the licensed cash in transit operators from undertaking such public education.(4)The Bank shall not be used in any way, whatsoever, to promote the sale and use of any devices or to indicate the Bank’s endorsement of any brand of such devices.8. Amendment of Terms and Conditions
The Bank, may amend, suspend or withdraw the whole or specific sections of these conditions, and shall duly give notice of any such amendment to all stakeholders within thirty days.THIRD SCHEDULE
FEES AND CHARGES
A.FEESThe following fees shall be payable by cash in transit operators?(a)Application fees KSh. 5,000(b)Initial licence fee KSh. 100,000(c)License renewal fees (annual) KSh. 100,000B.REPLACEMENT CHARGES FOR DYE-STAINED NOTES1.The Bank shall levy the following charges in respect of all approved claims for exchange of dye-stained notes presented for replacement:(1)KSh. 10 per dye-stained note in respect of attempted robbery claims.(2)KSh. 20 per dye-stained note in respect of accidental discharge.(3)KSh. 10,000 per cash in transit box being administrative costs.(4)KSh. 20,000 per cash in transit box, in respect of all cases in which the user of the cash in transit boxes has failed to comply with the manufacturer’s specifications, in terms of packaging of the volumes and notes.2.The Bank shall reserve the right to decline a claim in its entirety if willful non- compliance with the manufacturer’s specifications, is proven.3.The above fees or charges shall be subject to review from time to time.
