EN ECB-PUBLIC 
 
 OPINION OF THE EUROPEAN CENTRAL BANK 
of 20 November 2015 
on protection against counterfeiting and the preservation of the quality of cash in circulation 
(CON/2015/50) 
 
Introduction and legal basis 
On 28 October 2015, the European Central Bank (ECB) received a request from the Governor of the 
Nationale Bank van België/Banque Nationale de Belgique (NBB), acting on behalf of the Minister of 
Finance, for an opinion on a draft Royal Decree implementing the Law of 17 July 2013 on protection 
against counterfeiting and the preservation of the quality of cash in circulation (hereinafter the ‘draft Royal 
Decree’). The ECB was requested to deliver an opinion within one month in order to enable the Belgian government to take the ECB’s opinion into consideration before submitting the draft Royal Decree to 
Parliament.  
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 third indents of Article 2(1) of Council 
Decision 98/415/EC
1, since the draft Royal Decree concerns currency matters, means of payment and 
the NBB. In accordance with the first sentence of Ar ticle 17.5 of the Rules of Procedure of the European 
Central Bank, the Governing Council has adopted this opinion. 
 
1.  Purpose of the draft Royal Decree 
1.1  The draft Royal Decree implements the Law of 17  July 2013 on protection against counterfeiting 
and the preservation of the quality of cash in circ ulation. That law aims to go beyond the mere 
implementation of the Union legislation imposing requirements on cash handlers, stipulated in Article 6 of Council Regulation (EC) No 1338/2001
2 and Decision ECB/2010/143, and to impose 
additional requirements on cash handlers with regard to ‘presumably neutralised banknotes’, i.e. banknotes presumed to have been neutralised by an anti-theft device.  
1.2 For this purpose, the draft Royal Decree codifies and replaces the Royal Decree of 5 April 2006 
implementing the Law of 12 May 2004 relating to the protection against counterfeiting. In particular, it imposes on cash handlers the following additional duties, which are derived from the existing 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42).  
2  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). 
3  Decision ECB/2010/14 of 16 September 2010 on the authenticity and fitness checking and recirculation of euro 
banknotes (OJ L 267, 9.10.2010, p. 1). 
ECB-PUBLIC 
2 obligations imposed upon them in connection with counterfeited banknotes or banknotes unfit for 
circulation: (a) in respect of their staff handling banknotes, drawing up instructions and procedures, raising awareness and organising training, subject to su itable internal control measures, to facilitate 
the detection of presumably neutralised banknotes; (b) in respect of their banknote handling machines, ensuring that these machines are capable of detecting presumably neutralised 
banknotes, retaining and processing such banknotes and recording the account number of the 
person to whose account those banknotes were credited; (c) in respect of banknotes received 
during transactions made by hand, ensuring that such banknotes are not presumably neutralised; 
(d) in respect of banknotes identified as presumably neutralised, withdrawing such banknotes from circulation and handing them over to the NBB, restricting their physical manipulation, and 
identifying the details of account holders, account numbers, digital data, photographic images and other information which may be useful to identify the persons seeking to carry out a transaction 
using such notes. 
1.3 Furthermore, the draft Royal Decree empowers the NBB to determine the standards with which 
cash handling machines must comply, such standards being confidential and only divulged to the 
institutions and third parties who need to have knowledge of them with a view to their implementation.  
1.4 In accordance with Article 6 of the Law of 17 July 2013 on protection against counterfeiting and the 
preservation of the quality of cash in circulati on, any breach of the new obligations imposed upon 
cash handlers may give rise to an administrative fi ne imposed by the Ministry of Finance upon a 
proposal of the NBB, amounting to between EUR 250 and EUR 50,000, as well as corrective actions, the NBB being entrusted with the task of investigating any breach of the new requirements. 
 2.  General observations 
2.1 The ECB notes that it has been consulted on two previous occasions by the NBB on draft laws on 
protection against counterfeiting and on the preser vation of the quality of cash in circulation
4. The 
ECB, while reiterating the remarks previously expr essed in response to those consultations, shall 
restrict its comments to the new provisions added by the draft Royal Decree to the existing legal framework.  
2.2 The ECB welcomes the draft Royal Decree, which aims to enhance the security of the money 
supply and reduce the risk of criminals being able to recirculate neutralised euro banknotes.  
 
3.  Specific observations 
3.1 As presumably neutralised banknotes retain their legal tender status in accordance with Council 
Regulation (EC) No 974/98
5, any restriction on the use or circulation of such banknotes has to be 
                                                 
4  See Opinions CON/2011/64 and CON/2013/43. All ECB opinions are published on the ECB’s website: 
www.ecb.europa.eu. 
5  Council Regulation (EC) No. 974/98 of 3 May 1998 on the introduction of the euro (OJ L 139, 11.5.1998, p. 1). 
ECB-PUBLIC 
3 compatible with Union law. In particular, such limitations need to be proportionate to the general 
objective pursued by the restriction. The ECB considers that the rules stipulated in the draft Royal Decree to identify and prevent the circulation, at the earliest stage possible, of neutralised euro 
banknotes are proportionate to the objective pursued by such rules, namely to curb the possibility 
for thieves to recycle or obtain reimbursement for genuine euro banknotes that have been 
neutralised following the activation of an anti-theft device. The ECB understands that the draft 
Royal Decree does not affect the NBB’s competence with regard to the exchange and crediting of 
value of damaged euro banknotes, which will be dealt with by the NBB in accordance with 
applicable Union law, in particular Decision ECB/2013/10
6.  
3.2 The ECB also welcomes the fact that the draft Royal Decree empowers the NBB to adopt 
standards which the cash handling machines must comply with in order to identify and block the circulation of presumably neutralised banknotes. The ECB understands from the explanatory 
memorandum accompanying the draft Royal Decree that the NBB will take into account the rules to 
be adopted in this area by the ECB
7.  
 
This opinion will be published on the ECB’s website.  
 
Done at Frankfurt am Main, 20 November 2015.  
[signed] 
 The President of the ECB 
Mario DRAGHI  
                                                 
6  Decision ECB/2013/10 of the European 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). 
7  See page 5 of the explanatory memorandum.