Effective January 4, 2016, the Federal Reserve Banks are amending Operating Circular 2, Cash Services (OC-2), and the Cash Services Manual of Procedures (CSMOP). As amended, OC-2 and CSMOP will require depository institutions that ship U.S. currency between a physical location inside the United States and a physical location outside the United States (international currency activity) to consult with their Administrative Reserve Bank about applicable requirements, including whether they must enter into an international currency services agreement with a Reserve Bank.
Other amendments to OC-2 and CSMOP apply to domestic cash services and include updates to procedures, terms, and definitions, as well as amendments that align Reserve Bank procedural requirements with those of the Bureau of Engraving and Printing and of the United States Mint.
Key amendments also include:
- Adding the Coin Exchange Program, which permits certain depository institutions to exchange coin with each other, as a potential option for coin distribution in specific markets;
- Clarifying the requirements for deposit packaging and for depositing contaminated currency;
- Extending the timeframe to file coin difference claims from 15 to 20 business days; and
- Revising language on notification to depository institutions of deposit differences to accommodate the new Deposit Difference Report functionality in the FedLine Web® access solution.
To help depository institutions prepare for the amended OC-2 and the amended CSMOP, revised versions of both documents as well as a complete summary of the changes to each are available on the Operating Circulars page on FRBservices.org. In addition, the Deposit Visual Reference Guide is being updated to reflect the OC-2 and CSMOP amendments and will be available soon on FRBservices.org.
The amendments to OC-2 and CSMOP will be effective January 4, 2016. Your continued use of FedCash® Services on or after that date will constitute your agreement to the amended terms of OC-2 and CSMOP. Accordingly, it is important that you review these amendments and plan for any operational impact prior to the January 4, 2016 effective date to ensure your continued compliance.