EN
OPINION OF THE EUROPEAN CENTRAL BANK
of 30 August 2001
at the request of the French Ministry of Economy, Finance and Industry on a draft decree
relating to the marking of banknotes denominated in francs
(CON/2001/20)
1. On 6 August 2001 the European Central Bank (ECB) received a request from the French
Ministry of Economy, Finance and Industry for an opinion on a draft decree (hereinafterreferred to as the draft decree) concerning the marking by perforation of certain banknotes infrancs that will be returned to credit institutions, the Post Office and the accountants of theTreasury for exchange operations between francs  and euro between 1 January and 30 June 2002.
2. The ECBs competence to deliver an opinion is based on Article 105(4) of the Treaty
establishing the European Community (hereinafter referred to as the Treaty), the first indentof Article 4(a) of the Protocol on the Statute of the European System of Central Banks and ofthe European Central Bank and the first indent of Article 2(1) of Council Decision 98/415/EC of29 June 1998 on the consultation of the European Central Bank by national authoritiesregarding draft legislative provisions
1, since the draft decree relates to currency matters. In
accordance with the first sentence of Article 17.5 of the Rules of Procedure of the EuropeanCentral Bank
2, this opinion has been adopted by the Governing Council of the ECB. 
3. The draft decree provides for the perforation of banknotes denominated in francs that will be
returned to credit institutions empowered to perform a banking service in France, the PostOffice and the accountants of the Treasury for exchange operations between francs and eurobetween 1 January and 30 June 2002. All banknotes, except the 20 francs banknote, may besubject to the perforation
3. The draft decree sets forth the manner in which the banknotes are to
be perforated4 and provides that only credit institutions empowered to perform a banking
                                                     
1OJ L 189, 3.7.1998, p. 42.
2OJ L 125, 19.5.1999, p. 34.
3 Annex 1 to the draft decree.
4 Annex 2 to the draft decree.
2service in France, the Post Office and the Treasurys accountants may perform such
perforation5.
4. Pursuant to the draft decree, the perforated banknotes and banknotes in francs whose condition
prevents verification of the possible presence of this perforation shall be neither exchangeablenor redeemable
6. However, perforated banknotes may be accepted by the Banque de France or
the Institut démission des départements doutre-mer, acting for and on behalf of the Banque deFrance, when deposited at the counters of the Ba nque de France or the Institut démission des
départements doutre-mer by a credit institution, the financial services of the Post Office, theaccountants of the Treasury or a company transporting funds to be credited to its account
7.
Furthermore, the draft decree provides that, except in the cases foreseen in Articles 1 and 2 ofthe draft decree, accepting, holding or using a perforated banknote or a banknote in francswhose condition prevents verification of this perforation shall be sanctioned by a fine
8. The
draft decree also provides that the object that ha s been used or was intended to be used for the
offence or that is the product thereof, and the perforated banknotes or banknotes in francs whosecondition prevents verification of the possible presence of this perforation, shall be confiscated
9.
Furthermore, legal persons may be held liable under criminal law for the offence of accepting,holding or using the above-mentioned banknotes
10.
5. As stated in paragraph 13 of Opinion CON/2001 /15 of 26 June 2001 at the request of the
Nationale Bank van België/Banque Nationale de Belgique on a draft law relating to the cashchangeover to the euro in Belgium, the ECB considers that national measures may be taken inthe context of the withdrawal of national banknotes (including the marking or neutralisation ofsuch banknotes). Indeed, national measures taken to facilitate the withdrawal of nationalbanknotes are envisaged and provided for in Article 15 of Council Regulation (EC) No 974/98of 3 May 1998 on the introduction of the euro
11.
6. The ECB understands that the perforation of ce rtain banknotes denominated in francs, the
prohibition (except for credit institutions, the Post Office and the accountants of the Treasury inthe cases laid down in Articles 1 and 2 of the draft decree) against accepting, holding and usingthe perforated banknotes and banknotes in francs whose condition prevents verification of thepossible presence of this perforation, and the confiscation described above constitute specificsecurity measures, which should facilitate the smooth withdrawal of banknotes denominated infrancs. Insofar as the proposed measures facilitate the withdrawal of such banknotes, the ECBwelcomes the draft decree. 
                                                     
5 Draft decree, Article 2.
6 Draft decree, Article 1.
7 Ibidem .
8 Draft decree, Article 3.
9 Ibidem .
10 Ibidem .
11OJ L 139, 11.5.1998, p. 1.
37. Based on the assumption that the perforated banknotes should be treated as mutilated banknotes,
the fact that the perforated banknotes may only be exchanged at the counters of the Banque deFrance or the Institut démission des départem ents doutre-mer does not infringe Article 52 of
the Protocol on the Statute of the European System of Central Banks and of the EuropeanCentral Bank, which requires national central banks to exchange at par banknotes of allparticipating Member States.
8. The ECB understands that the perforated banknotes and banknotes denominated in francs whose
condition prevents verification of the possible presence of the perforation will continue to belegal tender during the dual circulation period but their use and circulation will be restricted bythe draft decree. In this context, the ECB notes that the Code Monétaire et Financier  already
provides for other restrictions on the use of banknotes which are legal tender for paymentsabove a certain amount and in the context of certain transactions. 
9. The ECB confirms that it has no objection to the publication of this opinion at the discretion of
the competent national authority.
Done at Frankfurt am Main on 30 August 2001.
The President of the ECB
[signed]
Willem F. DUISENBERG