EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 20 April  2016  
on the authenticity and fitness checking of euro banknotes and their circulation  
(CON/ 2016/25) 
 
Introduction and legal basis  
On 2 March 2016,  the European Central Bank (ECB) received a request from  the Banca d’Italia for an 
opinion on draft amendments to a Banca d’Italia a ct laying down  secondary provisions on the authenticity 
and fitness checking of euro banknotes and their circulation (hereinafter the ‘ draft legislation ’).  
The ECB’s competence to deli ver an opinion on the draft legislation is based on Articles  127(4) and 
282(5)  of the Treaty  on the Functioning of the European Union  and the first, second and  third indent s of 
Article  2(1) of Council Decision 98/415/EC of 29 June  1998 on the consultation of the European Central 
Bank by national authorities regarding draft legislative provisions1, as the draft legislation concerns  
currency matters , means of payment and t he Banca d’Italia.  In accordance 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 secondary legislation  
1.1 The draft legislation takes  into account certain legislative developments  at European and national 
level2, and reflect s the experience gained  by the Banca d’Italia in relation to  the inspection and 
remote monitoring of cash handlers. More specifically, the draft legislation:  (i) further clarifies the 
procedural and technical requirements applicable to cash handlers, (ii) lays down administrative 
sanctions and corrective measures for non- compliance with such requirements , and 
(iii) streamlines procedures on statistical reporting by cash handlers.  
 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  In particular, Decision ECB/ 2010/14 of the European Central Bank of 16 September 2010 on the authenticity and 
fitness checking and recirculation of euro banknotes  (OJ L 267, 9.10.2010, p. 1) ; Article 97 of Decree Law No 1 of 24 
January 2012 on u rgent provisions on competition, infrastructure development and competitiveness , which was 
converted into Law No 27 of 24 March 2012 containing legal provisions for the protection of the euro from 
counterfeiting; and Article 145 of  Legislative Decree No 385 of 1 September 1993 as amended by Legislative Decree 
No 72 of 12 May 2015.  
ECB -PUBLIC  
2 2. General observations  
2.1 The ECB considers that the draft legislation will improve the procedures regarding the authenticity 
and fitness checking of euro banknotes and their circulation, thus ensuring continued public 
confidence in the euro.  
2.2 The ECB notes  that the draft legislation uses  the term ‘ damaged banknotes ’. So far, the draft 
legislation only  refers to Decision ECB/2010/14 as a regulatory source. However , Decision 
ECB/2010/14 does not refer to ‘damaged banknotes’. Article  2(11) of Decision ECB/2010/14 
defines the term ‘ unfit euro banknotes ’ and Annex III to the Decision refers t o defects  with regard to 
specific features that would caus e a euro banknote to be categorised as unfit  for circulation . 
However, another ECB legal act, Decision ECB/2013/10 of the European Central Bank3, uses  the 
term ‘damaged banknotes’.  The ECB therefore recommends integrating Decision ECB/2013/10 into 
the list of regulatory sources referred to in the draft legislation.  
 
This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 20 April 2016.  
 
[signed]  
 
The President of the ECB  
Mario  DRAGH I 
                                                 
3  Decision ECB/2013/10 of the E uropean Central Bank of 19 April 2013 on the denominations, specifications, 
reproduction, exchange and withdrawal of euro banknotes  (OJ L 118, 30.4.2013,  p. 37).