Initiative of the Federal Republic of Germany with a view to the adoption of a Council Framework Decision on increasing protection by penal sanctions against counterfeiting in connection with the introduction of the euro

(1999/C 322/04)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on European Union, and in particular Articles 31(e) and 34(2)(b) thereof,

Having regard to the initiative by the Federal Republic of Germany,

Having regard to the Opinion of the European Parliament(1),

Recalling Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro(2), which lays down that currency denominated in euro shall start to be put into circulation as from 1 January 2002 and obliges the participating Member States to ensure adequate sanctions against counterfeiting and falsification of euro banknotes and coins;

Noting the Commission communication of 23 July 1998 to the Council, the European Parliament and the European Central Bank on "Protection of the euro - combating counterfeiting";

Noting the Resolution of the European Parliament of 17 November 1998 concerning the Commission communication of 23 July 1998 to the Council, the European Parliament and the European Central Bank on "Protection of the euro - combating counterfeiting"(3);

Noting the Recommendation of the European Central Bank of 7 July 1998 regarding the adoption of certain measures to enhance the legal protection of euro banknotes and coins(4);

Taking into account the provisions of the International Convention of 20 April 1929 for the suppression of counterfeiting currency and its Protocol;

Whereas the world-wide importance of the euro means it will be particularly open to the risk of counterfeiting;

In view of the fact that there is already evidence of fraudulent activity with regard to the euro;

Whereas it should be ensured that the euro is protected in an appropriate way in all Member States by efficient criminal law measures, even before the currency starts to be put into circulation as from 1 January 2002;

Taking into account the Council Resolution of 28 May 1999 on increasing protection by penal sanctions against counterfeiting in connection with the introduction of the euro(5) with its guidelines for a binding legal instrument,

HAS ADOPTED THE FOLLOWING FRAMEWORK DECISION:

Article 1

For the purposes of this framework Decision:

- "Convention" shall mean the International Convention of 20 April 1929 for the suppression of counterfeiting currency and its Protocol;

- "currency" shall mean paper money (including banknotes) and metallic money, the circulation of which is legally authorised.

Article 2

1. The purpose of this Framework Decision is to supplement the provisions of the Convention in accordance with the following provisions and to facilitate the application thereof by the Member States.

2. To this end, the Member States that have not yet done so undertake to accede to the Convention.

3. The obligations under the Convention shall remain unaffected.

Article 3

1. Each Member State shall take the necessary measures to ensure that the conduct referred to in Article 3, paragraphs 1 to 4 to the Convention as extended by Articles 4 to 7 of this Framework Decision, is punishable also with respect to currency that is or has been manufactured in violation of the rights of the authority competent to issue currency in a Member State.

2. Each Member State shall take the necessary measures to ensure that the conduct referred to in Article 3 of the Convention as extended by Articles 4 to 7 of this Framework Decision is punishable even if it relates to currency which is intended for circulation, but has not yet been issued.

Article 4

The transport, export, transfer to another person and procuring for another person shall be treated under national law as equivalent to the conduct referred to in Article 3, point 3 of the Convention subject to the conditions referred to therein.

Article 5

1. (a) Holograms and other components of currency which serve to protect against counterfeiting, as well as

(b) computer programmes and other means particularly adapted for the counterfeiting or altering of currency

shall be treated under national law as equivalent to the instruments and articles referred to in Article 3, point 5 of the Convention subject to the conditions referred to therein.

2. Subject to the conditions referred to in Article 3, point 5 of the Convention, possession of the instruments, articles and means mentioned therein and in paragraph 1 above shall betreated under national law as equivalent to the conduct referred to in the aforesaid Article of the Convention.

Article 6

Each Member State shall take the necessary measures to ensure that the conduct referred to in Article 3 of the Convention as extended by Articles 4 and 5 of this Framework Decision is punishable by effective, proportionate and dissuasive criminal penalties, including penalties involving deprivation of liberty which can give rise to extradition.

Article 7

1. Without prejudice to Articles 8 and 9 of the Convention, each Member State shall take the necessary measures to establish its jurisdiction over the offences referred to in Article 3 of the Convention, in conjunction with the extensions pursuant to Articles 4 and 5 of this Framework Decision, where the offence is committed in whole or in part within its territory.

2. Without prejudice to Articles 8 and 9 of the Convention, each Member State shall take the necessary measures to establish its jurisdiction over cases where an offence referred to in Article 3 of the Convention, in conjunction with the extensions pursuant to Articles 4 and 5 of this Framework Decision, is committed with respect to the euro outside its territory and where it has not extradited the offender.

3. Where more than one Member State has jurisdiction and has the possibility of viable prosecution of an offence based on the same facts, the Member States involved shall cooperate in deciding which shall prosecute the offender or offenders with a view to centralising the prosecution in a single Member State where possible.

Article 8

1. Member States shall take the necessary measures to comply with the provisions of this Framework Decision by 31 December 2000.

2. Member States shall transmit to the General Secretariat of the Council, the Commission of the European Communities and the European Central Bank the text of the provisions transposing into their national law the obligations imposed on them under this Framework Decision. On the basis of this information, the Council will, by 30 June 2001 at the latest, assess the extent to which Member States have complied with this Framework Decision.

3. An evaluation, notably also of its practical application, shall be carried out by 31 December 2004 at the latest pursuant to the Joint Action adopted by the Council on 5 December 1997 establishing a mechanism for evaluating the application and implementation at national level of international undertakings in the fight against organised crime(6).

Done at ...

For the Council

The President

...

(1) Opinion delivered on ... (not yet published in the Official Journal).

(2) OJ L 139, 11.5.1998, p. 1.

(3) OJ C 379, 7.12.1998, p. 39.

(4) OJ C 11, 15.1.1999, p. 13.

(5) OJ C 171, 18.6.1999, p. 1.

(6) OJ L 344, 15.12.1997, p. 7.