September 19, 2021

Reserve Bank says looted banknotes are being used in South Africa

The South African Reserve Bank (SARB) says that the looting and unrest over the previous week have resulted in some banking infrastructure being broken, together with some automated teller machines (ATMs).

The central financial institution stated that ATMs are geared up with know-how to stain banknotes in case of assault. This strategy of defending the banknotes defaces them in order that they carry no financial worth for individuals who invade ATMs, the SARB stated.

“The SARB wishes to advise the public to be aware and cautious of accepting banknotes that have been stained with traces of blue or green ink,” it stated. “Be aware that these banknotes are thought of the proceeds of crime and haven’t any worth and can’t be exchanged.

“Members of the public are therefore strongly encouraged not to accept such banknotes, and to report such incidents to the nearest police station.”

How the dye-stain works

ATMs maintain money in particular containers that defend the notes with dye-stain know-how that’s activated when somebody tries to interrupt open the container.

As soon as activated, the money is stained with a inexperienced dye, thus defacing the notes, rendering them unusable as foreign money. The stained notes are recognised as having no financial worth as soon as they are stained.

Individuals who are in possession of those notes make themselves suspects of a prison investigation that may search to find out in the event that they had been concerned in the stealing and unauthorised entry of those ATM containers, stated the South African Banking Danger Info Centre (Sabric).

Sabric stated it has additionally observed a rise in the tried circulation of dye-stained notes in KwaZulu-Natal and Gauteng, following the destruction of a number of ATMs.

The individuals of South Africa are cautioned in opposition to accepting these dye-stained notes as authorized tender because the onward use and worth of those notes is not going to be honoured, stated Sabric chief government Nischal Mewalall.

“You might also end up out of pocket after releasing items or performing providers since you won’t be able to utilise the foreign money you had been paid with.

“In addition, you also run the risk of being investigated, arrested, and prosecuted for the destruction of these ATMs.”

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