Proposal for a Council Regulation on the protection of the euro against counterfeiting
Date: 2000-07-26
Institutions: European Commission
Subjects: European Central Bank, European Monetary System, fraud, industrial counterfeiting, single monetary policy

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Official Journal of the European Communities

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Proposal for a Council Regulation on the protection of the euro against counterfeiting

(2000/C 337 E/42)

COM(2000) 492 final (cid:15) 2000/0208(CNS)

(Submitted by the Commission on 28 July 2000)

THE COUNCIL OF THE EUROPEAN UNION,

centralises the classification and analysis of technical data
relating to counterfeit notes.

Having regard to the Treaty establishing the European
Community, and in particular the third sentence of Articles
123(4) and Article 308 thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Parliament,

Having regard to the Opinion of the European Central Bank,

Whereas:

(1) Council Regulation (EC) No 974/98 of 3 May 1998 on the
introduction of the euro (1) provides for euro notes and
coins to be put into circulation by the European System
of Central Banks (ESCB) and the Member States by 1
January 2002 at the latest; a protection system must be
adopted rapidly so that it can be operational before euro
notes and coins are put into circulation.

(2) Certain concepts, such as euro counterfeiting, technical
data and operational and strategic data must be defined
for the purposes of this Regulation.

(3) In its framework Decision of 29 May 2000 on increasing
protection by criminal penalties and other
sanctions
against counterfeiting in connection with the introduction
of the euro (2), the Council took measures to ensure that
the euro is protected in an appropriate way by the
criminal law.

(4) The Council Decision of 29 April 1999 extended
Europol’s mandate to deal with forgery of money and
means of payment (3).

(5) The counterfeiting analysis centre (CAC) established and
the European Central
in accordance with the ECB Guideline (4)

managed under the auspices of
Bank (ECB)

(1) OJ L 139, 5.11.1998, p.1.
(2) OJ L 140, 14.6.2000, p 1.
(3) Convention on the establishment of a European Police Office
(Europol Convention), OJ C 316, 27.11.1995, p. 2, and Council
Decision of 29.4.1999 extending Europol’s mandate to deal with
forgery of money and means of payment, OJ C 149, 28.5.1999,
p. 17.

(4) European Central Bank Guideline of 26 August 1998 on certain
provisions regarding euro banknotes, as amended on 26 August
1999 (ECB/1999/3), OJ L 258, 5.10.1999, p. 32 (Article 3).

(6) The technical rules for processing euro coins, approved by
the Council on 28 February 2000, provide for
the
information on euro
systematic gathering of
counterfeiting by the European Central Bank, the estab-
lishment at European level of a European Technical and
Scientific Centre (ETSC) for the technical analysis and the
classification of false euro coins and at national level for
national coin analysis centres (CNAC).

technical

(7) Provision is made for

the European Technical and
Scientific Centre to be established on a temporary basis
as a distinct administrative entity within the Paris Mint
(exchange of letters between the President of the Council
and the French Minister of Finance);
its tasks must be
defined by this Regulation.

(8) The European Central Bank is to gather and process all
technical data relating both to counterfeit euro notes and
to counterfeit euro coins.

(9) Counterfeit euro notes held and seized must be handed
over for identification to the national central banks or the
national analysis centres @ NAC); counterfeit coins must
be handed over to the national coin analysis centres.

(10) Credit institutions and bureaux de change must be under
an obligation to withdraw counterfeit euros from circu-
lation and hand them over to the relevant authorities.

(11) A Unit to combat euro counterfeiting should be estab-
lished; given Europol’s mandate, the Unit should be set
up and managed by Europol, which has declared its will-
ingness to act, and its functions should be specified; the
Member States should take all necessary measures in the
context of the rules applicable to Europol to ensure that
the Unit can exercise its functions as defined by this
Regulation and enjoy the requisite resources.

(12) There should be a euro counterfeiting information system
within the Unit to combat euro counterfeiting; it should
consist of an operational and strategic database meeting
the objectives of Article 13 of the Geneva Convention of
20 April 1929 in order to boost
the effectiveness of
activities to prevent and detect euro counterfeiting and
facilitate operational cooperation.

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(13) The tasks of the European Unit in relation to information
for relevant authorities on the analysis of euro counter-
feiting should be specified, as
should its obligations
regarding technical and operational cooperation with the
relevant national and European authorities so as to supply
them with the information they need as quickly as
possible.

(14) To ensure the exchange of full, up-to-date and consistent
data, provision should be made for national centralisation
of operational and strategic information and for reporting
obligations.

relevant

authorities

(15) Provision must be made for mutual assistance between
the
a mechanism for
immediate assistance and rapid information flows (early
warning system); this system should be managed by the
Unit to combat euro counterfeiting; the Member States
should take the requisite measures to that end.

and for

(16) Given that

the euro will be used by non-member
countries as a currency for international
transactions,
rules governing cooperation in the event of counterfeiting
in non-member countries should be laid down.

(17) Confidentiality and protection of personal data must be
ensured by applying the principles of Directive 95/46/EC
processing of personal data for the purposes of this Regu-
lation. These principles must also be applied if
the
processing of personal data falls outside the scope of
application of this Directive as laid down in Article 3
thereof; data concerned with technical security shall be
covered by professional secrecy.

(18) To ensure continuity in the work by the euro counter-
feiting experts group that
inspired the Commission’s
preparatory work, regular meetings should continue to
be held for exchanges of views and discussion between
those most actively involved in preventing and combating
counterfeiting; training measures for national authorities
and non-member countries will also be taken in this
context to ensure that initiatives taken at national and
European levels complement each other; to this end the
Commission has set up, within the Advisory Committee, a
special group for protection of euro notes and coins
against
counterfeiting
experts from the Member States and representatives of
the European Central Bank, the European Technical and
Scientific Centre,
the Unit provided for by Article 7,
Europol and Interpol.

counterfeiting,

consisting

of

(19) The centralised exchange of information on cases of euro
counterfeiting detected by the relevant national authorities
is an additional vital component which will allow the
protection scheme, given its dimensions and the effects
of the planned action at European level, the operational

scope that will optimise all the measures taken to secure
the credibility of the euro in Community terms; this is
intimately bound up with the measures needed for the
rapid introduction of the euro as the single currency of
the participating Member States.

(20) The measures to be taken to combat euro counterfeiting
concern the Community by virtue of its responsibilities
for the single currency; the legal protection of the euro
cannot be satisfactorily ensured by the Member States
acting alone, since notes and coins will be valid legal
tender beyond their borders.

(21) The measures provided for by this Regulation are without
prejudice to the power of the Member States to apply
national criminal law for the purposes of protecting the
euro against counterfeiting and do not affect the inde-
pendence of the national judicial authorities.

(22) The Member States which have not adopted the euro, as
potential participants in the single currency, also have an
interest in its legal protection, and their cooperation is
necessary for the purposes of effective protection;
to
ensure that this Regulation applies to them, Article 308
is added as a legal basis in conjunction with the third
sentence of Article 123(4),

HAS ADOPTED THIS REGULATION:

CHAPTER 1

DEFINITIONS AND RELEVANT AUTHORITIES

Article 1

Definitions

For the purposes of this Regulation, the following definitions
shall apply:

1.

Ccounterfeit euro notesD and Ccounterfeit euro coinsD: notes
and coins denominated in euros which have been:

@ produced or altered without authorisation from the

relevant issuing authorities;

@ produced with the use of lawful facilities or equipment
in violation of the rights or conditions in accordance
with which the relevant authorities may issue currency;

@ put

into circulation in violation of

the rights or
conditions in accordance with which the relevant auth-
orities may issue currency;

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2.

3.

4.

the euro:

the conduct described in
CcounterfeitingD of
Articles 3 to 5 of
framework Decision on
increasing protection by criminal penalties and other
sanctions against counterfeiting in connection with the
introduction of the euro of 29 May 2000 (1);

the Council

Ctechnical dataD: data relating to descriptions of the charac-
teristics distinguishing authentic notes and coins from notes
and coins of dubious authenticity (technical description of
type of counterfeit);

Coperational dataD: data linked to counterfeiting offences,
personal
including
to
on-the-spot
inquiries and investigations to enhance their
effectiveness;

assistance

required

data

for

5.

Cstrategic dataD: data linked to risk-evaluation objectives the
value of which goes beyond the handling of a specific case
already being investigated or likely to be investigated;

6.

CGeneva ConventionD: the International Convention for the
Suppression of Counterfeiting Currency, signed at Geneva
on 20 April 1929 (2).

Article 2

Relevant national authorities

For the purposes of this Regulation,

1.
Crelevant national
authoritiesD means the authorities designated to that end by
the Member States:

@ for the purposes of gathering and analysing technical data
the national

relating to false euro notes,
central banks or other empowered bodies;

in particular

@ for the purposes of gathering and analysing technical data
relating to false euro coins, in particular the national mints,
the national central banks or other empowered bodies;

@ for the purposes of gathering and analysing operational and
strategic data relating to euro counterfeiting, in particular
the national central offices referred to in Article 12 of the
Geneva Convention;

@ for the purposes of detecting and recording offences, pros-

ecuting and punishing offenders.

Each Member State shall send the European Central Bank,
2.
the Commission and Europol a list of designated authorities.

(1) OJ L 140, 14.6.2000, p 1.
(2) League of Nations, Treaty Series 2623 (1931), p. 372.

CHAPTER 2

TECHNICAL DATA

Article 3

Gathering and access

1.
Technical data relating to counterfeit euro notes and coins
shall be gathered and indexed by the relevant national auth-
orities and notified to the European Central Bank for storage
and processing. The European Central Bank shall also be
responsible for gathering technical
information relating to
counterfeit euro notes and coins from non-member countries.

The relevant national authorities and the Commission
2.
and Europol,
in their respective areas of responsibility, shall
have direct access to the technical data held by the European
Central Bank.

Article 4

Obligation to transmit counterfeit euro notes for identifi-
cation

1.
The relevant national authorities for the detection or
compilation of counterfeit euro notes shall without delay
provide the nationally empowered body with examples of
each type of counterfeit euro note for analysis and identifi-
cation and such technical
information and statistical data as
are in their possession. The nationally empowered body shall
transmit
to the European Central Bank every new type of
counterfeit note corresponding to the criteria adopted by the
European Central Bank.

2.
This procedure shall also apply in the course of judicial
inquiries, unless there is an overriding need to retain all the
counterfeit notes for use as evidence.

The European Central Bank shall without delay notify the

3.
authorities concerned of the final result of its analysis.

Article 5

Obligation to transmit counterfeit euro coins for identi-
fication

1.
Each Member State shall establish or designate a national
coin analysis centre (CNAC) in accordance with national legis-
lation and practice.

2.
The relevant national authorities for the detection or
compilation of counterfeit euro coins shall without delay
provide the national coin analysis centre with examples of
each type of counterfeit euro coin for analysis and identifi-
cation and such technical
information and statistical data as
are in their possession. The national coin analysis centre
shall transmit to the European Technical and Scientific Centre
(ETSC) every new type of counterfeit coin corresponding to the
criteria adopted by the European Technical and Scientific
Centre; to this end, the European Central Bank shall provide
the national coin analysis centres with such technical data
relating to counterfeit euro coins as are in their possession.

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This procedure shall also apply in the course of judicial
3.
inquiries, unless there is an overriding need to retain all the
counterfeit coins for use as evidence.

The European Technical and Scientific Centre shall
4.
without delay analyse and classify the counterfeit euro coins
and notify the European Central Bank and the authorities
concerned of the final result of its analysis.

Article 6

Obligations of credit institutions

Credit

1.
institutions within the meaning of Directive
2000/12/EC (1) and establishments engaged in the activity of
exchanging notes and coins of different currencies, such as
bureaux de change, shall withdraw all counterfeit euro notes
and coins from circulation and hand them over to the relevant
national authorities. To that end, they shall make appropriate
checks on the authenticity of euro notes and coins which they
receive.

Institutions

2.
to which paragraph 1 applies which
negligently or intentionally fail to discharge their obligations
under paragraph 1 shall be subject to effective, proportionate
and dissuasive penalties. The Member States shall notify the
Council, the Commission and the European Central Bank of
the text of the provisions adopted for this purpose within one
year following the adoption of this Regulation.

CHAPTER 3

OPERATIONAL AND STRATEGIC DATA

Article 7

Unit to combat euro counterfeiting

The Member States shall ensure that a Unit to combat
is set up by Europol and

1.
euro counterfeiting (the CUnitD)
managed as a Europol administrative entity.

The Unit

2.
the exchange,
shall manage a system for
gathering and analysis of operational and strategic information
within the Europol information system.

@ regularly provides information to the relevant authorities,
the European Central Bank and the Commission on the
monitoring of
the
purposes of strategic analysis. The information shall relate
in particular to the types of counterfeit, the geographical
location of counterfeiting activities and the practices used
to commit them;

euro counterfeiting activities

for

@ on request or of its own motion, provides the relevant
authorities of
the Member States and of non-member
countries with the assistance they need in the exercise of
their tasks of preventing and combating euro counter-
feiting. Such assistance shall include scientific support;

for

@ cooperates with the European Central Bank and the
Commission, acting within the limits of their respective
the purposes of operational and strategic
powers,
the euro against counter-
analysis and of protection of
feiting. This cooperation shall
include the possibility for
the European Central Bank and the Commission, in their
respective areas of responsibility,
the Unit’s
system for the exchange, gathering and analysis of oper-
ational and strategic information on a permanent basis.

to consult

Article 9

National centralisation of information

Each Member State shall ensure by appropriate means that all
level relating to euro counterfeiting
information at national
cases, beginning with the first administrative or
judicial
record,
is transmitted to the national central office provided
for by Article 12 of the Geneva Convention.

Article 10

Reporting obligations

1.
Each Member State shall ensure that the national central
offices referred to in Article 12 of the Geneva Convention
transmit all detected euro counterfeiting cases, beginning
to the
with the
information system provided for by Article 7. The national
central offices shall have direct access to the information
system.

first administrative or

judicial

record,

Article 8

Tasks of the Unit

The Member States shall ensure that the Unit:

2.
Such information shall concern the identification of the
case, the identification of the counterfeit, the circumstances in
which the counterfeit was detected, the context of the seizure,
the persons involved and the links with other cases (see Annex
1).

@ lends its support in order to enhance the effectiveness of
information exchanges between the relevant authorities of
the Member States
tasks of
preventing and combating euro counterfeiting;

in the exercise of

their

(1) OJ L 126, 26.5.2000, p. 1.

Each Member State shall ensure that the national central
3.
offices regularly update the information and in any event
transmit information relating to stages of the procedure and
to the monitoring of prosecutions. Where this is required by
national
law, they shall seek authorisation from the relevant
judicial authority.

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CHAPTER 4

COOPERATION AND MUTUAL ASSISTANCE

Article 11

Mutual assistance

The Member States shall ensure that, at the request of the
requesting national authority, the requested national authority
transmits to the requesting authority, with copy in appropriate
cases to the Unit provided for by Article 7, all such information
as may be of assistance to it
in preventing, detecting and
combating euro counterfeiting.

Article 12

Immediate assistance and rapid circulation of information

1.
The Member States shall ensure that a communication
system is established by the Unit provided for by Article 7 to
allow proper action to be taken immediately.

2.
The communication system (early warning system) shall
be available 24 hours a day every day of the week. It shall be
interactive with the operational and strategic information
system and shall allow easy transmission of
images and
photographs and reply messages. Provision shall be made for
identification of
the
the type of counterfeit,
persons involved and the action requested (see Annex 2).

the message,

Article 13

External aspects

to prevent

in
and combat
assistance
accordance with the provisions of the cooperation, association
and pre-accession agreements relating to the prevention of
unlawful activities.

euro combating,

3. Where they receive information on euro counterfeiting
occurring in non-member countries, the relevant national auth-
orities, with support from Europol and the Commission, shall
make their staff,
including the liaison officers, available for
prevention and detection purposes. This obligation shall
apply irrespective of whether the counterfeits are linked to
the territory of the Member State providing the assistance.

CHAPTER 5

FINAL PROVISIONS

Article 14

Data protection and confidentiality

The Member States, institutions and other bodies shall ensure
that, where personal data are processed for the purposes of this
Regulation, there is a level of data protection corresponding at
least to that which results from application of the Parliament
and Council Directive 95/46/EC of 24 October 1995 on the
individuals with regard to the processing of
protection of
personal data and the free movement of such data.

Data relating to technical
professional secrecy.

security shall be covered by

1.
The Member States shall ensure that the Unit provided for
by Article 7 gathers operational and strategic information
relating to cases of euro counterfeiting in non-member
countries.

Article 15

Entry into force

This Regulation shall enter into force on 1 January 2001.

2.
countries.

Cooperation shall be
include
shall

It

established with non-member
and administrative
technical

This Regulation shall be binding in its entirety and directly
applicable in all Member States.

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ANNEX 1

OPERATIONAL AND STRATEGIC INFORMATION SYSTEM

(Standardised information)

1. File identification

Notification identification number
Date of notification
Body responsible for notification
Internal reference number
Stage in procedure:

Contact department

2. Identification of forgeries

Denomination

Series
Counterfeit Class Identifier (ECB)
Machine number
Serial number
Plate number
National head of coin

administrative investigations
police investigations
legal proceedings
trial
name:
telephone number:
fax number:
e-mail address:

Notes

Coins

EUR 500
EUR 200
EUR 100
EUR 50
EUR 20
EUR 10
EUR 5

EUR 2
EUR 1
50 cents
20 cents
10 cents
5 cents
2 cents
1 cent

BE
DE
ES
PT

FR
IR
IT
FIN

LUX
NL
AU
EL

Quantity
Instruments or objects seized or identified

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3. How the forgeries were detected

Date of detection
Place of seizure or recovery

Stage at which detected

seized in individual’s possession
seized at place of production
seized elsewhere
detected in course of routine commercial banks checks
detected in circulation
automatic telling machines, vending machines, etc.
national bank

production
import (EC)
export (outside EC)
transport
sale/purchase/exchange
introduction into circulation

Place of introduction into circu-
lation

distribution

exchange bureau

Place of detection:

bank branch

other

country:
post code:
town:

4. Circumstances of seizure

Information that led to detection:

Suspected origin or source (other than introduction into circulation):

Modus operandi, particular elements:

Statements by person last in possession:

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5. Individuals concerned

Surname:

First name:
Alias:
Date of birth:
Place of birth:
Address:

Role:

Status of person:

Vehicle used:

PHOTO

Nationality:

street
postcode
town
country

producer
importer
exporter
carrier
in possession
in bona fide possession
member of criminal network/organisation
under arrest
suspected offender
questioned as witness
unidentified
Number plate:

Specific identity data, or special characteristics (dangerousness . . ., name of criminal networks):

6. Connection with other cases:

..................................................................................
..................................................................................
..................................................................................
..................................................................................

Notification No:

Criminal record:

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ANNEX 2

EARLY WARNING SYSTEM

1. Message identities

Sender ID:
Particulars of contact person:

name:
first name:
office address:
telephone number:
fax number:
e-mail address:

Message date:
Recipient ID:
Copies to:
Identification number of report to operational database:
Attachments:

image of counterfeit (option)
photo of suspect
others

2. Identification of forgeries

Denomination

Counterfeit Class Identifier (ECB):

Stage:

Provisional assessment of risk:

Notes

Coins

EUR 500
EUR 200
EUR 100
EUR 50
EUR 20
EUR 10
EUR 5

EUR 2
EUR 1
50 cents
20 cents
10 cents
5 cents
2 cents
1 cent

production
first appearance on market
broader distribution

very dangerous
dangerous
to be monitored

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3. Individuals concerned

Surname:

First name:
Alias:
Date of birth:
Place of birth:
Address:

Role

street
postcode
town
country

producer
importer
exporter
carrier
in possession
member of criminal network/organisation
determining factor
unknown

Specific identity data or special characteristics (dangerousness, . . . name of criminal networks):

4. Action required

Regarding individuals involved:

Regarding the counterfeit:

discreet surveillance, close monitoring
investigation, interception
questioning as witness
arrest, warrant number
mutual assistance request

prepared

launched

alert banks
alert general public
active search order