EN ECB -PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 12 June 2013  
on the treatment of euro banknotes  neutralised by anti -theft devices  
(CON/ 2013/43) 
 
Introduction and legal basis  
On 24 May  2013, the European Central Bank (ECB) received a request from  the Nationale Bank  van 
België/Banque Nationale de Belgique (NBB), acting on behalf of the Belgian Ministry for Home Affairs , 
for an opinion on five amendments (hereinafter the ‘amendments’) to a draft law on protection against 
counterfeiting and the preservation of the qual ity of cash in circulation  (hereinafter the ‘draft law ’).  
The ECB’s competence to deliver an opinion is based on Article s 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 C ouncil 
Decision 98/415/EC of 29  June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions1, since  the draft amendments concern currency matters, 
means of payment and the NBB.  In accordance wit h 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 amendments  
The amendments aim to enhance public security by reducing the possibility for thieve s to recycle or 
obtain reimbursement for genuine euro banknotes that have be en neutralised  following the activation of 
an anti -theft device2. To this end, t he amendments introduce the concept of ‘presumably neutralised 
banknotes ’, i.e. euro banknotes for w hich there are sufficient reasons to believe that they have be en 
neutralised by certain type s of ink stains  resulting from  the activation of an anti -theft device3, and appl y 
to such euro banknotes a treatment which is similar to that applied to  counterfeit s.  
First, certain institutions (hereinafter ‘ professional cash handlers’4) will be required to withdraw from 
circulation all presumably neutralised banknotes that come into their possession , and to hand them over to 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2 Explanatory m emorandum, justification concerning  Amendment No 2. 
3 Amendment No 1 (proposed new Article 3(3) of the draft law).  
4 The amendments and the draft law apply to all institutions falling within the scope of: (a) Article 6 of Council 
Regulation  (EC) No  1338/2 001 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 of checking and recirculation of euro banknot es (OJ L 267, 9.10.2010, p. 1); and (c) Regulation (EU) 
ECB -PUBLIC  
2 the NBB without undue delay5. In additi on, when presumably neutralised banknotes are found in a 
banknote handling machine or are discovered by a professional cash handler  during a transaction , the 
professional cash handlers will be required to ensure that they are neither reimbursed nor credite d to the 
account of the person presenting them and that the depositor or the account owner is identified . These 
obligations will apply in the case of over-the-counter transactions and also upon presentation  of 
presumably neutralised banknotes to banknote h andling machine s6. The presumably neutralised 
banknotes handed over to the NBB will only be reimbursed  in accordance  with Decision ECB/2013/10 of 
19 April 2013 on the denominations, specifications, reproduction, exchange and withdrawal of euro 
banknotes7.  
The monitoring measures that the NBB can take, and the administrative fines  and corrective measures it 
can impose on professional cash handlers with respect to their obligations regarding counterfeits, w ill also 
apply with respect to presumably neutralise d banknotes8. 
 
2.  Appropriate time to consult the ECB   
The amendments concern the draft law , on which the Belgian Ministry of Finance  consulted the E CB in 
the past9. The draft law has recently been tabled before the Belgian Parliament  and the amendments  were 
introduced  by members of Parliament  on 22 May 2013. The ECB was requested to deliver an opinion on 
the amendments as a matter of extreme urgency , if possible within two weeks , because of the imminen t 
vote in the Parliament.   
According to Article 4 of D ecision 98/415/EC , the ECB must be consulted at an appropriate stage in the 
legislative process. This implies that the consultation should take place at a point in the legislative process 
that allows the ECB sufficient time to examine the draft legislative  provisions and to adopt its opinion, 
and the national authorities the possibility to take into account the ECB’s views . The ECB stresses that 
even cases of particular and duly justified urgency do not relieve national authorities of their duty to 
consult at an appropriate stage in the legislative process and to allow sufficient time for its views to be 
taken into account in accordance with Decision 98/415/EC.   
 
3. General observation  
The ECB understands that the amendments  aim at enhancing public security  by reducing the risk of 
criminals being able to put into circulation neutralised euro banknotes, i.e. euro banknotes which have 
                                                                                                                                                             
 
No 1210/2010 of the European Parliament and the Council of 15 December 2010 concerning authentication of euro coins 
and handling of euro coins unfit for circulation (OJ L 339, 22.12.2010 , p. 1 ). 
5 Amendment No 2 (proposed new Article 4bis of the draft law ).  
6 Explanatory memorandum, justification concerning  Amendment No 2. 
7 Amendment No 2 (proposed new Article 4bis of the draft law ).  
8 Amendment s Nos 3, 4 and 5, introducing a reference to the propos ed new Article 4bis in Article s 5, 8 and 9 of the draft 
law. The consulting authority clarified that a similar reference  will also be introduced in Article 6 of the draft law . 
9 See Opinion CON/2011/64. All ECB opinions are published on the ECB’s website a t www.ecb.europa.eu.  
ECB -PUBLIC  
3 certain specific type s of ink stains resulting from  the activation of an anti-theft device.  To this end, they 
introduce in the draft law an Article 4bis, the second paragraph  of which  prohibits cash handlers from 
reimbursing  neutralised euro banknotes or crediting an account with such euro banknotes , both in the 
context of cash  payment transaction s and deposit s with banknote handl ing machine s.    
 
4.  Transactions settlement in neutralised  euro banknotes  
4.1 The ECB takes into account that stakeholders (banks, retailers, cash in transit companies, the 
general public) are actively encouraged to remove neutralised  euro banknotes from  circulation and 
return  them to the national central banks as it is very likely that such euro banknotes are the 
proceeds of a theft10. 
4.2 Nevertheless , the ECB notes that neutralised euro banknotes retain their legal tender status and that 
this has been a cknowledged by the European Commission11. In this respect, the requirements and 
prohibitions introduced in the draft law by the amendments would affect the legal tender status of 
presumably neutralised banknotes . In addition, they  would effectively introduc e limitations on cash 
payments  in relation to the settlement of cash transactions where  such euro banknotes  are used in 
good faith to  this end . 
4.3 Recital 19 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro12 
states that l imitations on payments in notes and coins, established by Member States for public 
reasons, are not incompatible with the status of legal tender of euro banknotes and coins, provided 
that other lawful means for the settlement of monetary debts are availabl e. The ECB acknowledges 
that: ( a) such other lawful means for the settlement of monetary debts, other than neutralised euro 
banknotes, are available in Belgium; and ( b) the draft law’s objective of enhancing public security 
by reducing the risk of criminal s’ being able to put into circulation neutralised euro banknotes in 
relation to a crime qualifies as a public reason outweighing the impact of the limitations on cash 
payments.  
4.4 However, limitations on cash payments should be proportionate to the genera l objective of 
reducing the risk of criminals being able to put into circulation neutralised euro banknotes and 
should not go beyond what is necessary to achieve this objective. Any limitations as a result of  the 
amendments  should be carefully weighed agai nst the public benefits expected to be derived from 
them.  
 
                                                 
10 See paragraph  5 of the Commission Recommendation of 22 March 2010 on the scope and effects of legal tender of euro 
banknotes and coins (OJ L 83, 30.3.2010, p. 70) , and Article  10 of Regulation (EU) No 1214/2011 of the European 
Parlia ment and of the Council of 16 November 2011 on the professional cross -border transport of euro cash by road 
between euro  area Member States  (OJ L 316, 29.11.2011, p. 1) . 
11 See Opinion CON/2010/72  and paragraph  5 of the above -mentioned Commission Recommenda tion. 
12 OJ L 139, 11.5.1998, p. 1.   
ECB -PUBLIC  
4 5. Detection by customer -operated machines  of presumably neutralised banknotes  
The ECB welcomes the amendments, which further develop the existing ECB rules on the treatment of 
neutralised euro ban knotes by customer -operated machines in the context of criminal activity . In this 
respect, the ECB considers it  necessary that these amendments  are complemented by technical rules 
setting out details and criteria defining  how euro banknotes neutralised by anti-theft devices  will be 
treated in a manner similar to the regime for s uspect  counterfeit euro banknotes  under 
Decision  ECB/2010/14 . In particular, s uch technical  rules should establish  details , in line with the 
existing ECB rules in this respect,  about  the minimum  stained area , the contrast, and the specific spectral 
signature  of the stains , for euro banknotes to be considered as presumably neutralised banknotes , and the  
success rate  expected from the customer -operated machines regarding the  correct ide ntification  and 
separat ion of such presumably neutralised banknotes . 
 
6. A new NBB task  
The NBB is entrusted with the task of monitoring  professional cash handlers ’ compl iance  with the new 
obligations . The ECB has consistently expressed its concern that, w hen allocating additional tasks to 
national central banks, it must be ensured that they have sufficient human and financial resources, both in 
terms of quantity and quality, for all their tasks, and in particular that their capacity to perform their 
Europe an System of Central Banks or Eurosystem -related tasks is not affected13. 
 
This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 12 June 2013. 
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
13 See for instan ce Opinion CON/2012/15.