EN ECB-PUBLIC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 18 November 2011 
on protection against counterfeiting and on the preservation of the quality of cash circulation  
(CON/2011/94) 
 Introduction and legal basis
 
On 20 October 2011, the European Central Bank (ECB) received a request from the Italian Ministry of 
Economic Affairs and Finance for an opinion on dr aft legislative provisions amending Decree-Law No 
350 of 25 September 2001, converted into law by Law No 409 of 23 November 2001, as well as Decree-
Law No 262 of 3 October 2006, converted by Law No 286 of 24 November 2006 (hereinafter the ‘draft 
legislative provisions’). On the same day, the ECB received a request from the Banca d’Italia for an 
opinion on a set of draft Banca d’Italia acts layi ng down: (a) secondary provisions on cash handling 
activities (hereinafter the ‘draft secondary provisions ’), and (b) a guide for cash handlers on statistical 
reporting obligations (hereinafter the ‘draft guide’).  
The ECB’s competence to deliver an opinion is based on Article 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the first, sec ond and third indents of Ar ticle 2(1) of Council 
Decision 98/415/EC of 29 June 1998 on the consu ltation of the European Central Bank by national 
authorities regarding draft legislative provisions1, as the draft legislation concerns currency matters, 
means of payment and the Banca d’Italia. In accordan ce with the first sentence of Article 17.5 of the 
Rules of Procedure of the European Central Bank,  the Governing Council has adopted this opinion. 
 1.  Purpose of the draft legislation 
1.1 The draft legislation aims at aligning the Italian legal framework for protection against 
counterfeiting with recent Union legislation in this area
2. 
1.2 The draft legislative provisions, inter alia , increase the number of institutions subject to duties 
regarding the detection and prevention of use of counterfeit banknotes in order to comply with Regulation (EC) No 1338/2001. In that context, Article 8 of Decree-Law No 350/2001 has been 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  Notably, with: (a) Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the 
protection of the euro against counterfeiting (OJ L 181, 4. 7.2001, p. 6) (b) Decision ECB/2010/14 of 16 September 2010 
on the authenticity and fitness checking and recirculati on of euro banknotes (OJ L 267, 9.10.2010, p. 1); and (c) 
Regulation (EU) No 1210/2010 of the European Parlia ment and the Council of 15 December 2010 concerning 
authentication of euro coins and handling of euro co ins unfit for circulation (OJ L 339, 22.12.2010, p. 1). 
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2 replaced. Article 8(1) to (5), as amended by the draft legislative provisions, aim at implementing 
Article 6(1) of Regulation (EC) No 1338/2001 and Article 3 of Regulation (EU) No 1210/2010. In 
particular, Article 8(1), as amended by the draft legislative provisions, obliges cash handlers to 
check and detect counterfeit and unfit euro bank notes and coins whereas paragraphs 4 and 5, as 
amended by the draft legislative provisions, im pose on cash handlers the obligation to remove 
counterfeit and unfit banknotes and coins from circ ulation and hand them over to the Italian 
authorities.  
1.3 Article 8(6), as amended by the draft legislative provisions, appoints the Italian National Centre for 
the Analysis of Coins (CNAC) to perform the tasks set out in Regulation (EU) No 1210/2010. 
Article 8(7), as amended by the draft legislative provisions, empowers the Ba nca d’Italia to conduct 
inspections at the premises of cash handlers to  monitor compliance with Decision ECB/2010/14, 
Article 8 of Decree-Law No 350/2001, as amended by the draft legislative provisions, and the 
secondary provisions with reference to euro banknotes. In this c ontext, the Banca d’Italia may 
receive assistance from the tax police, subject to the same limits applying to investigations against 
tax evasion.  
1.4 Article 8(8), as amended by the draft legisla tive provisions, concerns agreements between the 
Banca d’Italia, the Ministry and the CNAC, as well  as other relevant authorities, on increasing 
cooperation in this area. Article 8(9), as amended by the draft le gislative provisions, empowers the 
Banca d’Italia and the Ministry to adopt impl ementing provisions, such as the abovementioned 
secondary provisions. Article 8(10) to (12), as ame nded by the draft legislative provisions, set out 
financial sanctions and consequences in case of breach of Article 8 itself, Decision ECB/2010/14, Regulation (EC) No 1338/2001 and Regulation (EU) No 1210/2010.  
1.5 Article 8- bis, as introduced by the draft legislative provisions, aims at implementing Article 4 of 
Regulation (EC) No 1338/2001. Article 8- ter, as introduced by the draft legislative provisions 
concerns professional secrecy. The draft legislative provisions also amend and insert in Article 2 of 
Decree-Law No 262/2006 paragraphs 152 to 153- bis, which refer to reporting obligations to the 
Ministry and related sanctions. 
1.6 The draft secondary provisions further clarify Decision ECB/2010/4 for the benefit of addressees. 
The draft guide explains in detail re porting obligations for cash handlers. 
 2.  General observations 
2.1 The ECB is confident that the draft provisions will ensure the authenticity and integrity of euro 
banknotes and coins in circulation, resulting in continued public confidence in the euro.  
2.2 As Decision ECB/2010/14 applies to cash handlers by virtue of Article 6(1) of Regulation (EC) 
No 1338/2001, which refers to procedures defined by the ECB for checking euro banknotes, there 
is no strict need to implement Decision ECB/201 0/14 in Italian law. Nevertheless, the ECB notes 
that the draft secondary provisions will contribute to the adequate implementation of this Decision.  
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3 2.3 The ECB considers it essential that any draft legislation implementing Decision ECB/2010/14 does 
not deviate from its common provisions, unless th is is explicitly provided for in Decision 
ECB/2010/14. Any national implementing measures should clarify the primacy and direct application of Union law on the authenticity an d fitness checking and recirculation of euro 
banknotes with which cash handlers must comply. In  this context, and fo r consistency reasons, 
including ensuring a level-playing field for cash handlers across Member States, the ECB favours the use of direct references to Decision ECB/2010/14 or, alternatively, reproduction of its provisions without any alterations or additions
3. In this regard, the ECB notes that the draft 
secondary provisions contain rules further detailing the outsourcing requirements of Article 3(2) of 
Decision ECB/2010/14. The ECB understands that the purpose of the draft secondary provisions is to limit any risks associated with such outsourcing and that they will supplement 
Decision ECB/2010/14.  
2.4 In addition, although national authorities are not formally obliged to consult the ECB on the 
implementation of the Member States’ obligation to take the necessary me asures to ensure that 
breaches of Article 6(1) of Regulation (EC) No 13 38/2001 are subject to ef fective, proportionate 
and deterrent sanctions, the ECB believes it is be neficial to harmonise throughout the Union the 
national measures implementing th is obligation to the extent possible, subject to national 
peculiarities
4.  
 3.  Sanctions 
3.1 According to Article 8(10) of Decree-Law No 350/2001, as amended by the draft legislative 
provisions, where cash handlers breach the obligations set out in Article 8 itself, the implementing provisions or the Union legislation to which the dr aft legislative provision refers, this would result 
in the imposition of an administrative fine be tween EUR 5 000 and 50 000. In addition, Article 
8(11) to (13), as amended by the draft legisl ative provisions, introduces the possibility for the 
Banca d’Italia or the Ministry to require a non-co mpliant cash handler to take additional corrective 
measures, with a possible impact on the conduct of  supervision and oversight by the relevant 
authorities. 
3.2 The ECB notes the importance of effect ive, proportionate and deterrent sanctions
5. The maximum 
amount of administrative fines should effectively deter cash handlers from breaching their obligations. While it is up to the na tional legislator to determine the levels, they should aim for a 
certain degree of harmonisation across the Member States to contribute to the establishment of a level playing field among cash handlers within the euro area without prejudice to: (a) the 
                                                 
3  Paragraphs 2.1 and 2.3 of Opin ion CON/2011/19. All ECB opinions are published on the ECB’s website at 
www.ecb.europa.eu. 
4  Paragraph 1.1 of Opinion CON/2010/87. 
5  Article 6(2) of Regulation (EC) No 1338/2001. 
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4 particularities of the cash cycle and the organisati on of cash handlers at national level; and (b) the 
consistency of the levels of financial sanctions available in their legal orders6.  
 This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 18 November 2011. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
                                                 
6  Paragraph 3.4 of Opinion CON/2010/87.