Decision (EU) 2019/2195 of the European Central BankShow full title

ANNEX II

‘ANNEX IIa CLASSIFICATION AND TREATMENT OF EURO BANKNOTES BY CUSTOMER-OPERATED MACHINES

Euro banknotes are classified into one of the following categories and are separated by category. Machines which do not check euro banknotes for fitness do not need to distinguish between category 4a and 4b euro banknotes.

Table 1

Classification and treatment of euro banknotes by customer-operated machines in which cash is deposited with customer tracing

Category		Properties	Treatment
1.	Objects not recognised as euro banknotes	Not recognised as euro banknotes because of any of the following: euro banknotes not supported by the machine non-euro banknotes euro banknote-like objects wrong image or format large folded corner(s) or missing part(s) feeding or transportation error of the machine	Return by the machine to the customer
2.	Suspect counterfeit euro banknotes	Image and format recognised, but one or more authentication feature checked by the machine not detected or clearly out of tolerance	Withdraw from circulation To be handed over for authentication, together with information related to the account holder, to the competent national authorities immediately, at the latest 20 working days after deposit in the machine Do not credit to the account holder.
3.	Euro banknotes that are not clearly authenticated	Image and format recognised, but not all authentication features checked by the machine are recognised because of quality and/or tolerance deviations. In most cases unfit euro banknotes	Withdraw from circulation The euro banknotes are handed over for authentication to the NCB immediately, at the latest 20 working days after deposit in the machine. Information on the account holder is stored for eight weeks after the euro banknotes have been detected by the machine. This information is made available on request to the NCB. Alternatively, in agreement with the NCB, information allowing the traceability of the account holder can be handed over together with the euro banknotes to that NCB. May be credited to the account holder
4a.	Euro banknotes that are identified as genuine and fit	All authenticity and fitness checks carried out by the machine giving positive results	Can be used for recirculation Credited to the account holder
4b.	Euro banknotes that are identified as genuine and unfit	All authenticity checks carried out by the machine giving positive results. At least one fitness criterion checked giving a negative result	Cannot be used for recirculation and are returned to the NCB Credited to the account holder

Specific rules regarding Table 1:

1.

Category 2 and 3 euro banknotes are not returned to the customer by a banknote handling machine if that machine allows the cancellation of a deposit transaction. Retaining such euro banknotes when a transaction is cancelled can be done by storing them in a temporary storage area in the machine.

2.

Category 3 euro banknotes do not need to be physically separated from category 4a or 4b euro banknotes. If no physical separation takes place, the time limit for handing over the mixed category 3, 4a and 4b euro banknotes to the NCB and the requirements regarding customer tracing of category 3 euro banknotes still apply.

3.

Category 3 euro banknotes, also when mixed together with category 4a or 4b banknotes, may be reprocessed on any successfully tested type of banknote handling machine. These banknotes are then treated as having been classified by the second banknote handling machine, whereby the traceability of the original category 3 banknotes to the original account holder needs to be maintained in case these banknotes are rejected by the second machine as euro banknotes that are not clearly authenticated.

Table 2

Classification and treatment of euro banknotes by cash-out machines (COMs)

Category		Properties	Treatment
1.	Objects not recognised as euro banknotes	Not recognised as euro banknotes because of any of the following: euro banknotes not supported by the machine non-euro banknotes euro banknote-like objects wrong image or format large folded corner(s) or missing part(s) feeding or transportation error of the machine	Cannot be dispensed to customers
2.	Suspect counterfeit euro banknotes	Image and format recognised, but one or more authentication feature checked by the machine not detected or clearly out of tolerance	Cannot be dispensed to customers To be handed over for authentication to the competent national authorities immediately, at the latest 20 working days after detection by the machine together with information related to the account holder if available
3.	Euro banknotes that are not clearly authenticated	Image and format recognised, but not all authentication features checked by the machine are recognised because of quality and/or tolerance deviations. In most cases unfit euro banknotes	Cannot be dispensed to customers The euro banknotes are handed over to the NCB for authentication immediately, at the latest 20 working days after deposit in the machine.
4a.	Euro banknotes that are identified as genuine and fit	All authenticity and fitness checks carried out by the machine giving positive results	Can be dispensed to customers
4b.	Euro banknotes that are identified as genuine and unfit	All authenticity checks carried out by the machine giving positive results At least one fitness criterion checked giving a negative result	Cannot be dispensed to customers and are returned to the NCB

Specific rules regarding Table 2:

1.

Category 1, 2 and 3 euro banknotes do not need to be physically separated. When mixed together, all three categories must be treated as category 2 euro banknotes. If category 1, 2 and 3 euro banknotes can be separated by using another banknote handling machine or, if agreed by an NCB, by trained staff members, they must be treated in accordance with Table 2.

2.

Category 3 euro banknotes do not need to be physically separated from category 4a and 4b euro banknotes. If no physical separation takes place, the time limit for handing over the mixed category 3, 4a and 4b euro banknotes to the NCB as specified for category 3 still applies.

3.

Category 3 euro banknotes, also when mixed together with category 4a or 4b banknotes, may be reprocessed on any successfully tested type of banknote handling machine. These banknotes are then treated as having been classified by the second banknote handling machine.

Table 3

Classification and treatment of euro banknotes by coin dispensing machines (CDMs)

CDMs must check the banknotes received for authenticity and retain those suspected to be counterfeits, but do not need to physically separate them by category. Banknotes suspected to be counterfeits have to be handed over for authentication to the competent national authorities immediately, at the latest 20 working days after detection by the machine, together with information related to the account holder, if available. Alternatively, the banknotes received by a CDM may be reprocessed on any successfully tested type of banknote handling machine and then treated as classified by this machine. The information related to the account holder of those pieces that have been classified as Category 2 or Category 3 during the reprocessing shall be maintained, if available.’