An updated Cash Services Manual of Procedures (CSMOP) will go into effect on March 1, 2019. In addition to the operational change announced in June 2018 that eliminated the deposit facing requirement for $50 and $100 denominations, the updated CSMOP includes refinements to Federal Reserve requirements for preparing currency deposits.
The CSMOP supplements Operating Circular 2 (OC 2), Cash Services (PDF), and defines operational procedures for FedCash® Services. There are no changes to the current version of OC 2, dated January 4, 2016. OC 2 and the CSMOP are available on the Operating Circulars page under the section for OC 2, Cash Services. Depository institutions must reference both OC 2 and the CSMOP for complete information regarding the Federal Reserve’s terms and procedures.
Your continued use of the Federal Reserve Banks’ cash services on or after the effective date of March 1, 2019, will constitute agreement to the terms in both OC 2 and the CSMOP.
It is important that you review the changes and make any necessary adjustments to ensure your organization is compliant by the March 1, 2019, effective date. In addition, if you contract with an outsourced cash vault provider to prepare your currency deposits, it is your responsibility to provide them with this information and ensure their compliance with your deposits.
Specifically, please review the following CSMOP sections:
- 4.2 Preparing a Currency Deposit
- 4.3 Process for Handling Counterfeit or Unlawfully Altered Currency or Coin
- 5.5 Submitting Coin Orders - Coin Orders Table (International Unit Dollar Amount for Presidential, Native American, and Susan B. Anthony Dollars)
Updates to the Deposit Visual Reference Guide
To illustrate the revised depositing procedures defined in CSMOP section 4.2, an updated Deposit Visual Reference Guide (DVRG) (PDF) is also available. The following sections have been modified:
- Preparing Currency
- Preparing Currency Straps
- Preparing Bundles
- Currency Bags/Containers
In particular, the section on Preparing Bundles has been expanded with clarification on required practices and examples of incorrect bundling, as shown below.
For questions related to these changes, contact your local Federal Reserve Bank Cash Services department.