The U.S. Mint is
seeking input through Nov. 15 on regulations for its mutilated coin
redemption program. The regulations are under review before the bureau
resumes the currently suspended program.
On Nov. 2, 2015, the Mint suspended its program of redeeming
mutilated coins. The suspension was initially intended to be a
six-month period, amid allegations of fraud involving overseas
vendors, but was extended indefinitely on May 2, 2016, and will not
resume until new program regulations are finalized and implemented.
The Mint remains in litigation with Wealthy Max Ltd., a vendor that
brought suit against the Mint for seizing millions of dollars face
value in mutilated U.S. coins that the company had attempted to have
redeemed before the program’s suspension.
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While the program is suspended, the Mint has been assessing security
measures “to ensure the integrity and acceptance and processing of
The additional feedback the Mint is soliciting will augment the
information and assessments the bureau has processed to date.
Among safeguards the Mint is evaluating are requirements for
participant certification, coinage material authentication, chain of
custody information, and annual submission limitations.
Mutilated coins are bent, deformed, partial and other defective
coins whose condition would render them unable to be processed through
normal counting equipment.
Bent coins are defined as “U.S. coins which are bent or deformed so
as to preclude normal machine counting but which are readily and
clearly identifiable as to genuineness and denomination.
Partial coins are defined as “U.S. coins which are not whole;
partial coins must be readily and clearly identifiable as to
genuineness and denomination.”
A notice posted Nov. 1, 2016, by the Mint on the
Register does not seek comment on changing the definitions of
bent or partial coins.
The redemption of uncurrent coins as defined in 31 CFR 100.10 is not being considered by the Mint.
Uncurrent coins “are whole U.S. coins which are merely worn or
reduced in weight by natural abrasion yet are readily and clearly
recognizable as to genuineness and denomination and which are machine countable.”
Uncurrent coins may be redeemed only at Federal Reserve
Banks and branches.