EN ECB-PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 23 February 2021 
on the protection of the eur o against counterfeiting  
(CON/2021/5) 
 
Introduction and legal basis 
On 13 January 2021 the European Central Bank (ECB) received a r equest from the Irish Minister for 
Finance for an opinion on the Counterfeiting Bill 2020 (hereina fter the ‘draft law’). 
The ECB’s competence to deliver an opinion is based on Articles  127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the first, second and thi rd indents of Article 2(1) of Council 
Decision 98/415/EC1, as the draft law relates to currency matters, means of paymen t and the Central 
Bank of Ireland (hereinafter, t he ‘CBI’). In accordance with th e first sentence of Artic le 17.5 of the Rules of 
Procedure of the European Central Bank, the Governing Council h as adopted this opinion. 
 
1. Purpose of the draft law 1.1 The draft law aims at aligning the Irish legal framework on  the protection of the euro against 
counterfeiting with the relevant Union legislation in this area . The draft law seeks to give effect to 
four Union legal acts in Ireland: (i) Directive 2014/62/EU of t he European Parliament and of the 
Council
2 (hereinafter, ‘the Directive’);  (ii) Council Regulation (EC) N o 1338/20013 as amended by 
Council Regulation (EC) 44/20094 (hereinafter, ‘the Counterfeit  Regulation’); (iii) Regulation (EU) 
No 1210/2010 of the European Parliament and of the Council5 (hereinafter, ‘the Coin Regulation’); 
and (iv) Decision ECB/2010/14 of the European Central Bank6 (hereinafter, ‘the ECB Banknote 
Decision’).  
1.2 The draft law seeks to implement the Directive by amending the Criminal Justice (Theft and Fraud 
Offences) Act 2001 to create criminal offences in respect of th e relevant counterfeiting activities 
outlined in that Directive. These include (i) offences in respe ct of the fraudulent making, receiving, 
obtaining or possession of a currency instrument, a counterfeit ing instrument or of security features 
which serve to protect against counterfeiting and (ii) offences  in respect of the import or export of 
 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation  of the European Central Bank by national 
authorities regarding draft legisl ative provisions (OJ L 189, 3 .7.1998, p. 42). 
2  Directive 2014/62/EU of the European Parliament and of the Cou ncil of 15 May 2014 on the protection of the euro 
and other currencies against counterfeiting by criminal law, an d replacing Council Fr amework Decision 
2000/383/JHA (OJ L 151, 21.5.2014, p. 1). 
3  Council Regulation (EC) No 1338/2001 of 28 June 2001 laying do wn measures necessary for the protection of the 
euro against counterfeiting (O J L 181, 4.7.2001, p. 6). 
4  Council Regulation (EC) No 44/2009 of 18 December 2008 amendi ng Regulation (EC) No 1338/2001 laying down 
measures necessary for the pr otection of the euro against count erfeiting (OJ L 17 , 22.1.2009, p. 1). 
5  Regulation (EU) No 1210/2010 of the European Parliament and of  the Council of 15 December 2010 concerning 
authentication of euro coins and handling o f euro coins unfit f or circulation (OJ L 339, 22.12.2010, p. 1). 
6  Decision ECB/2010/14 of the European Central Bank of 16 Septem ber 2010 on the authenticity and fitness checking 
and recirculation of euro banknot es (OJ L 267, 9.10.2010, p. 1) . 
ECB-PUBLIC 
 
2 counterfeits. The draft law ens ures jurisdiction in respect of such offences and inchoate offences.  
1.3 The draft law provides for  the enforcement of the Counterfe it Regulation, the Coin Regulation and 
the ECB Banknote Decision by ve sting responsib ility in the CBI.   
1.4 First, the draft law provides that the CBI is designated as  the National Analysis Centre for euro 
notes, as required by Article 4(1) of the Counterfeit Regulatio n, and as the Coin National Analysis 
Centre for euro coins, as required by Article 5(1) of the Coin Regulation. It is understood that such 
designation provides a clear sta tutory footing to the existing role of the CBI’s Currency Centre.  
1.5 Second, the draft law provides for functions and powers of the CBI. The CBI must monitor and take 
all necessary measures to ensure compliance by ‘relevant person s’ with their obligations under the 
Counterfeit Regulation, the Coin Regulation and the ECB Banknot e Decision, including in respect 
of authenticity and fitness chec king of euro banknotes and coin s. The CBI is empowered to verify 
(a) the procedures governing the operation and control of bankn ote handling machines and coin 
processing machines and (b) the treatment of, and any manual au thenticity and fitness checking of 
notes and coins. The draft law also empowers the CBI to impose requirements on relevant persons 
to comply with certain provisions of the Coin Regulation and th e ECB Banknote Decision; to adopt 
regulations to provide for the implementation of the ECB Bankno te Decision; and to require 
information, records, plans or other documents to be provided b y relevant persons to the CBI. A 
‘relevant person’ for the purpose of the draft law means (a) a credit institution, (b) within the limits 
o f  i t s  p a y m e n t  a c t i v i t y ,  a  p a y m e n t  s e r v i c e  p r o v i d e r ,  ( c )  A n  P o s t (the Irish Postal Service), and 
(d) any other person engaged in the processing and distribution  to the public of notes, coins, or 
both. 
1.6 Third, the draft law provides that the CBI may appoint auth orised officers for the purpose of the 
performance by it of its functi ons and sets out the powers of a uthorised officers. These include, 
inter alia , powers to enter premises, including pursuant to a warrant iss ued by a judge of the 
District Court; to search and inspect premises and records; to secure a premises for later 
inspection; to secure for later inspection, records or data equ ipment, including a computer in which 
records may be held; to monitor and inspect banknote handling m achines and coin inspection 
machines; and to remove samples of processed notes and coins fo r further inspection. 
1.7 Fourth, the draft law creates criminal offences for relevan t persons, inter alia , for failure to comply 
with specific obligations of the Counterfeit Regulation, the Co in Regulation, and the ECB Banknote 
Decision, and any requirements imposed by the CBI. The draft la w provides that summary 
proceedings for such an offence may be brought and prosecuted b y the CBI. The draft law also 
creates a criminal offence of obstructing or impeding the CBI o r an authorised officer; for providing 
false or misleading information to the CBI or an authorised off icer; and for failing to comply with the 
requirements of the CBI.  
 
2. General observations  2.1 The ECB welcomes the draft law, which will ensure the prese rvation of euro banknotes and coins 
in circulation, resulting in continued public confidence in eur o banknotes
7.  
 
7  See paragraph 2.1 of Opinio n CON/2011/92and paragraph 2.1 of Opinion CON/2010/90. All ECB opinions are 
published on EUR-Lex. 
ECB-PUBLIC 
 
3 2.2 The ECB welcomes the introduction under the draft law of a comprehensive set of functions and 
instruments at the disposal of the CBI in this area. In particu lar, the ECB takes positive note that 
the draft law will enable complia nce in Ireland with the ECB Ba nknote Decision.  
 3. Specific observations  
3.1 Tasks of the CBI  
3.1.1 The CBI acts within the Eu rosystem framework with regard to the protection of euro banknotes
8. 
Under existing provisions of Irish law, the CBI should receive forged banknotes, machinery, 
implements, utensils or materials used or intended to be used f or the forgery of banknotes9. Thus, 
the draft law complements and enhances the CBI’s existing tasks  in this area. The draft law does 
not confer genuinely new tasks on the CBI in this respect. 
3.1.2 With regard to its coin- related tasks, the CBI does not a ct within the Eurosystem framework. 
Article 128(2) of the Treaty pr ovides that the ri ght to issue e uro coins rests with the Member States. 
Therefore, it is up to each euro area Member State to specify t he legal issuer of the euro coins. In 
most euro area Member States issuance of euro coins is undertak en by the State. In some of those 
Member States, the national cent ral banks (NCBs) act as agents for their treasuries with regard to 
minting euro coins and putting them into circulation10. This is the case in Ireland, where coins 
denominated in euro or in cent are issued by the Minister for F inance through the CBI11. In some 
other euro area Member States12 coin issuance is a competence of the NCB13.  
3.1.3 Thus, the CBI’s coin-related tasks are conferred upon the  CBI as a function other than those 
specified in the Statute of the European System of Central Bank s and of the European Central 
Bank, which, in accordance with Article 14.4 of that Statute, s hall be performed on the 
responsibility and liability of the CBI and shall not be regard ed as forming part of the functions of 
the Eurosystem14.  
3.1.4 That said, as noted above, the CBI has already been confe rred with certain tasks under Irish law in 
respect of the issuance and circulation of coins. Thus, the dra ft law complements and enhances 
the CBI’s existing tasks in this area. The draft law does not c onfer genuinely new tasks on the CBI 
in this respect.  
3.2 Monetary financing prohibition 
The monetary financing prohibition laid down in Article 123(1) of the Treaty prohibits overdraft 
facilities or any other type of c redit facility with the ECB or  the NCBs in favour of Union institutions, 
bodies, offices or agencies, central governments, regional, loc al or other public authorities, other 
bodies governed by public law, or public undertakings of Member  States15. In view of the fact that 
 
8   See paragraph 2.1 o f Opinion CON/2016/58. 
9  See sections 54 and 55 of t he Central Bank Act 1942.  
10  For example, Greece, Luxembour g and Malta. In the Member Stat es where the NCBs act as agents for their 
treasuries, the NCBs are reimbursed in full for the cost of min ting and/or putting euro coins into circulation. 
11  See section 11 of the Economic  and Monetary Union Act 1998. 
12  For example, Cyprus, Estonia,  Latvia, Lithuania and Slovakia.  
13   See paragraph 2.1 o f Opinion CON/2016/4. 
14  See paragraph 2.1 o f Opinion CON/2016/58. 
15  The precise scope of applicat ion of the monetary financing pr ohibition is further clarified by Council Regulation (EC) 
No 3603/93 of 13 December 1993 s pecifying definitions for the a pplication of the prohibitions referred to in 
Articles 104 and 104b (1) of t he Treaty (OJ 332, 31.12.1993, p.  1). 
ECB-PUBLIC 
 
4 the coin-related tasks conferr ed on the CBI do not form part of  the functions of the Eurosystem, 
and that coins in euro are iss ued through the CBI as agent for the Minister for Finance, and in order 
to ensure that no circumventions of the monetary financing proh ibition occur, the CBI should be 
remunerated for its tasks insofar as they relate to euro coins,  in particular in relation to the 
protection of the euro against counterfeiting16. The ECB would welcome clarification that provision 
will be made for this. While exist ing provisions of Irish law a ppear to provide for reimbursement and 
remuneration in respect of the provision of euro coins17, these provisions do not appear to 
encompass all the CBI’s tasks, including the issuance, circulat ion and protection of coins against 
counterfeiting. Thus, the draft law should ensure a full and ad equate payment of all costs incurred 
in performing the relevant tasks on the basis of ‘arm’s length’  commercial terms. Such payment 
should either occur in advance of costs being incurred or on a regular and prompt basis as the 
costs arise18.  
3.3 Sanctions 
3.3.1 The ECB has noted in previous opinions that even though n ational authorities are not required to 
consult the ECB on measures taken to ensure that breaches of Ar ticle 6(1) of the Counterfeit 
Regulation are subject to effective, proportionate and deterren t sanctions, it is nonetheless 
beneficial to address this issue in order to encourage a harmon ised approach across the Union to 
the extent possible, subject to national peculiarities19. In the same context, the ECB also stresses 
that the power to impose criminal law sanctions, issue injuncti ons and impose financial penalties at 
the national level would be without prejudice to the ECB’s sanc tioning power20. 
3.3.2 The ECB takes note of the creation of a variety of crimin al offences under the draft law, including 
those offences in respect of which summary proceedings may be b rought and prosecuted by the 
CBI. In this manner, the draft law achieves an effective system  of deterrent criminal law sanctions 
in relation to the protection of the euro against counterfeitin g and thus contributes to maintaining 
public confidence in euro banknot es and coins in circulation. 
 
This opinion will be published on EUR-Lex.    Done at Frankfurt am Main, 23 February 2021.  
[signed]  
 
The President of the ECB 
Christine LAGARDE 
 
16  See paragraph 3.2 of Opinion CON/2019/33 and paragraph 3.2.2 of Opinion CON/2016/58. 
17  See sections 13, 14 and 14A o f the Economic and Monetary Unio n Act 1998. 
18  See paragraph 2.2 of Opinion CON/2018/57, paragraph 3.2.2 of Opinion CON/2016/58, and paragraph 2.2 of 
Opinion CON/2016/57. 
19  See paragraph 3.3 o f Opinion CON/2019/33. 
20  See paragraph 4.2 Opinion CON/2008/17 and recital 6 of the EC B Banknote Decision entitling the ECB to take 
appropriate administrative measures.