Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting
Date: 2001-06-28
Institutions: Council of the European Union
Subjects: counterfeiting, euro, fraud, paper money

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1338/2001

of 28 June 2001

laying down measures necessary for the protection of the euro against counterfeiting

THE COUNCIL OF THE EUROPEAN UNION,

(4)

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

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parliament (2),

Having regard to the opinion of the European Central Bank (3),

Whereas:

(1)

(2)

(3)

Council Regulation (EC) No 974/98 of 3 May 1998 on
the introduction of the euro (4), provides for euro notes
to be put into circulation by the European Central Bank
(ECB) and by the national central banks (NCB) of the
participating Member States and for euro coins to be put
into circulation by the participating Member States from
1 January 2002; a system for protecting the euro against
counterfeiting must therefore be adopted rapidly so that
it can be operational before euro notes and coins are put
into circulation.

The arrangements put in place by the Council Act of 26
July 1995 drawing up the Convention on the establish-
ment of a European Police Office (Europol Conven-
tion) (5) and by the Council Decision of 29 April 1999
extending Europol's mandate to deal with forgery of
money and means of payment (6) are designed to
combat counterfeiting in general.

framework Decision of 29 May 2000 on
In its
increasing protection by criminal penalties and other
sanctions against counterfeiting in connection with the
introduction of the euro (7), the Council adopted provi-
sions to ensure that the euro is protected in an appro-
law.
priate way by effective measures under criminal

Measures to protect
the euro against counterfeiting
concern the Community as part of its responsibility in
respect of the single currency; the legal protection of the
euro cannot be satisfactorily ensured by the individual
Member States alone, since euro notes and coins will
circulate beyond the territories of
the participating
therefore necessary to adopt
It
Member States.
Community legislation defining the measures necessary
for euro notes and coins to circulate in the proper
conditions to ensure the overall effective and consistent
protection of the euro against activities likely to jeopar-
dise its credibility, and thus to adopt appropriate meas-
ures so that everything is ready in good time before 1
January 2002.

is

(5)

(6)

For the purposes of applying this Regulation it is neces-
sary to define or to take over the existing definitions of
certain concepts such as euro counterfeiting, technical
authorities
and statistical data
competent for research inter alia with a view to the
gathering and analysis of data concerning counterfeiting,
including the central offices provided for in Article 12 of
the Geneva Convention.

and the national

It should be ensured that the technical and statistical
data collected by the competent national authorities
regarding counterfeit euro notes and coins and as far as
possible unauthorised notes are communicated to the
ECB while allowing the competent national authorities
and, in accordance with its responsibilities, the Commis-
sion, to have access to such data. It is also envisaged that
Europol will have access to such data on the basis of an
agreement between it and the ECB.

(1) OJ C 337 E, 28.11.2000, p. 264.
(2) Opinion delivered on 3 May 2001 (not yet published in the Official

(7)

Journal).

(3) OJ C 19, 20.1.2001, p. 18.
(4) OJ L 139, 11.5.1998, p. 1. Regulation as last amended by Regula-

tion (EC) No 2596/2000 (OJ L 300, 29.11.2000, p. 2.)

The counterfeiting analysis centre (CAC) established and
managed under the auspices of the ECB, in accordance
with its Guideline (8), centralises the classification and
analysis of technical data relating to counterfeit notes.

(5) OJ C 316, 27.11.1995, p. 1.
(6) OJ C 149, 28.5.1999 p. 16 and corrigendum in OJ C 229,

12.8.1999, p. 14.

(7) OJ L 140, 14.6.2000, p. 1.

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

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The technical scheme for handling counterfeit euro coins
which the Council accepted on 28 February 2000 makes
reference to the systematic gathering of technical infor-
mation on euro counterfeiting by the ECB, the establish-
ment at European level of a European Technical and
Scientific Centre (ETSC) for the technical analysis and
the classification of counterfeit euro coins and at
national level of coin national analysis centres (CNAC).

(14)

(8)

(9)

(10)

(11)

(12)

Provision has been made for the ETSC to be established
on a temporary basis as a distinct and independent
administrative entity within the Paris Mint on the basis
of an Exchange of Letters between the President of the
Council and the French Minister for Finance of 28
February and 9 June 2000; its tasks must be defined in
this Regulation; the future status and the permanent
headquarters of the ETSC will be decided by the Council
in due course.

It is necessary to provide for counterfeit euro notes to be
handed over for identification to the national analysis
centres — NAC; counterfeit coins should be handed
over to the CNAC.

establishments

involved in the

It is necessary to provide that credit institutions and any
sorting and
other
distribution to the public of notes and coins as a profes-
sional activity, including those whose activity consists in
exchanging notes or coins, such as bureaux de change,
shall be under an obligation to withdraw from circula-
tion euro notes and coins which they know or have
sufficient reason to believe to be counterfeit and hand
them over to the competent national authorities.
In
addition, it is necessary to provide for the Member States
to take steps so that sanctions they consider appropriate
are imposed in the event of non-compliance by the said
establishments with their obligations.

Close and regular cooperation between the competent
national authorities, the Commission and the ECB must
be organised to ensure effective and consistent protec-
tion of the euro, in particular as regards exchanges of
information with the exception of personal data, mutual
cooperation and assistance between Community and
national authorities, scientific support and vocational
training. To this end, the Commission will continue,
without prejudice to the role attributed to the ECB in
protecting the euro against counterfeiting, on a regular
basis,
in an appropriate advisory committee, with the
leading players in the fight against counterfeiting of the
euro (including the ECB,
the ETSC, Europol and
Interpol), the consultations on improving the conditions
for the overall protection of the euro on the basis of
legislative initiatives to reinforce the prevention and
combating of counterfeiting.

(13)

To ensure the exchange of full, up-to-date and compar-
able data, provision should be made for national central-
isation of strategic and operational information and for
the obligation to report data. To this end, provision
should be made for Member States to take the necessary

steps to enable central offices to fulfil their missions in
accordance with the Geneva Convention in order to
ensure the exchange of information between themselves
and national Europol units.

The complementary nature of the tasks of the various
Community partners, with the assistance Europol is able
to provide in accordance with the Council Decision of
29 April 1999, must bring together all
the tools
the euro from the damaging
required to protect
consequences arising from illegal counterfeiting activi-
ties. Europol fulfils its functions without prejudice to the
competence of the European Community; with strict
regard to their respective competences, Europol and the
establish forms of
European Community
cooperation enabling them to perform their respective
functions as effectively as possible; to this end, priority
should be given to the organisation of close and regular
cooperation on the basis of appropriate agreements to
be concluded between Europol and the ECB, on the one
hand, and between Europol and the Commission on the
other hand in accordance with the relevant provisions of
the Europol Convention.

should

(15) Given that the euro will be used by non-member coun-
tries as a currency for international transactions, provi-
sion should be made
structured cooperation
for
involving all the relevant players in the event of counter-
feiting in non-member countries.

(16)

The measures provided for by this Regulation do not
affect the power of the Member States to apply national
criminal
law for the purposes of protecting the euro
against counterfeiting,

HAS ADOPTED THIS REGULATION:

CHAPTER 1

PURPOSE AND DEFINITIONS

Article 1

Purpose

1.
The purpose of this Regulation is to lay down measures
necessary with a view to uttering euro notes and coins in such
a manner as to protect them against counterfeiting.

For the purpose of applying this Regulation, ‘counterfei-

2.
ting’ shall mean the following activities:

(a) any fraudulent making or altering of euro notes or euro

coins, whatever means are employed;

(b) the fraudulent uttering of counterfeit euro notes or coun-

terfeit euro coins;

(c) the import, export, transport, receiving or obtaining of
counterfeit euro notes or counterfeit euro coins with a view
to uttering the same and with knowledge that they are
counterfeit;

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(d) the fraudulent making, receiving, obtaining or possession

(f) ‘Europol Convention’ shall mean the Convention of 26 July

of:

1995 on the establishment of Europol (3).

— instruments, articles, computer programs and any other
means peculiarly adapted for the fraudulent making or
altering of euro notes or coins,

or

— holograms or other components which serve to protect
fraudulent making or

euro notes and coins against
alteration.

3.
This Regulation shall apply, without prejudice to the
application of national criminal law, to the protection of the
euro against counterfeiting.

Article 2

Definitions

Within the meaning of this Regulation:

(a) ‘counterfeit notes’ and ‘counterfeit coins’ shall mean notes
and coins denominated in euro or which have the appear-
ance of euro notes or coins and which have been fraudu-
lently made or altered;

(b) ‘competent national authorities’ shall mean the authorities

designated by the Member States for:

— identifying counterfeit notes and coins;

— gathering and analysing technical and statistical data
in particular national

relating to counterfeit notes,
central banks or other empowered bodies;

— gathering and analysing technical and statistical data
relating to counterfeit coins,
in particular national
mints, national central banks or other empowered
bodies;

— gathering data relating to counterfeiting of the euro and
submitting them to analysis, in particular the national
central offices referred to in Article 12 of the Geneva
Convention;

(c) ‘credit

institutions’

shall mean the credit

institutions
referred to in the first subparagraph of Article 1(1) of
Directive 2000/12/EC of the European Parliament and of
the Council of 20 March 2000 relating to the taking up
and pursuit of the business of credit institutions (1);

(d) ‘technical and statistical data’ shall mean data by means of
which counterfeit notes or counterfeit coins may be identi-
fied (technical description of type of counterfeit) and data
on the number of counterfeit notes and counterfeit coins
in particular geographical;
by their origin,

(e) ‘Geneva Convention’ shall mean the International Conven-
tion for the Suppression of Counterfeiting Currency, signed
at Geneva on 20 April 1929 (2);

(1) OJ L 126, 26.5.2000, p. 1. Directive as amended by Directive

2000/28/EC (OJ L 275, 27.10.2000, p. 37.)

CHAPTER 2

TECHNICAL AND STATISTICAL DATA

Article 3

Gathering and access

1.
Technical and statistical data relating to counterfeit notes
and counterfeit coins discovered in the Member States shall be
gathered and indexed by the competent national authorities.
These data shall be communicated to the European Central
Bank for storage and processing.

2.
The European Central Bank shall gather and store tech-
nical and statistical data relating to counterfeit notes and coun-
terfeit coins discovered in non-member countries.

3.
The competent national authorities and, within its areas
of responsibility, the Commission, shall have access to the
technical and statistical data held by the European Central
Bank. Europol shall have access to such data under an agree-
ment between it and the European Central Bank in accordance
with the relevant provisions of the Europol Convention and the
provisions adopted on the basis of the latter.

Article 4

Obligation to transmit counterfeit notes for identification

1.
In agreement with the European Central Bank, Member
States shall designate or establish a National Analysis Centre
(NAC) in accordance with their national

law and practice.

2.
the
The competent national authorities shall permit
examination by the NAC of suspected counterfeit notes and
shall without delay provide it with the necessary examples
requested by the NAC of each type of suspected counterfeit
note for analysis and identification and such technical and
statistical data as are in their possession. The NAC shall send
the European Central Bank every new type of suspected coun-
terfeit note corresponding to the criteria adopted by the Euro-
pean Central Bank.

3.
Paragraph 2 shall be applied in such a way that it does
not prevent suspected counterfeit notes from being used or
retained as evidence in criminal proceedings.

4.
The European Central Bank shall communicate the rele-
vant final results of its analysis and classification of every new
type of counterfeit note to the competent national authorities
and, according to its areas of responsibility, to the Commis-
sion. The European Central Bank shall communicate the results
to Europol, in accordance with the agreement referred to in
Article 3(3).

(2) League of Nations Treaty Series No 2623 (1931), p. 372.

(3) OJ C 316, 27.11.1995, p. 2.

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Article 5

Obligation to transmit counterfeit coins for identification

1. Member States
National Analysis Centre (CNAC)
law and practice.
national

shall designate or establish a Coin
in accordance with their

the
The competent national authorities shall permit
2.
examination by the CNAC of suspected counterfeit coins and
shall without delay provide the necessary examples requested
by the CNAC of each type of suspected counterfeit coin for
analysis and identification and such technical and statistical
data as are in their possession. The CNAC shall send the
European Technical and Scientific Centre (ETSC) every new
type of suspected counterfeit coin corresponding to the criteria
adopted by the European Technical and Scientific Centre; to
that end the European Central Bank shall provide the CNAC
with such technical and statistical data relating to counterfeit
euro coins as are in its possession.

Paragraph 2 shall be applied in such a way that it does
3.
not prevent suspected counterfeit coins from being used or
retained as evidence in criminal proceedings.

4.
The ETSC shall analyse and classify every new type of
counterfeit euro coin. To that end, the ETSC shall have access
to the technical and statistical data stored at
the ECB on
counterfeit euro coins. The ETSC shall communicate the rele-
vant final results of its analysis to the competent national
authorities and, according to their respective areas of responsi-
bility, to the Commission and the European Central Bank. The
European Central Bank shall communicate those results to
Europol,
in accordance with the agreement referred to in
Article 3(3).

CHAPTER 3

OBLIGATIONS AND SANCTIONS

Article 6

Obligations of credit institutions

1.
Credit institutions, and any other institutions engaged in
the sorting and distribution to the public of notes and coins as
a professional activity, including establishments whose activity
consists in exchanging notes and coins of different currencies,
such as bureaux de change, shall be obliged to withdraw from
circulation all euro notes and coins received by them which
they know or have sufficient reason to believe to be counter-
feit. They shall immediately hand them over to the competent
national authorities.

3. Member States shall adopt by 1 January 2002 the laws,
regulations and administrative provisions for applying this
Article. They shall forthwith inform the Commission and the
European Central Bank thereof.

CHAPTER 4

COOPERATION AND MUTUAL ASSISTANCE

Article 7

Cooperation to protect the euro against counterfeiting

1. With a view to effective protection of the euro against
counterfeiting, the Member States, the Commission and the
European Central Bank shall cooperate, on the one hand, with
each other, and, on the other hand, with Europol in accordance
with the Europol Convention and with the provisions adopted
on the basis of the latter. To that end the Commission and the
European Central Bank shall negotiate with a view to the
conclusion in due course of an agreement with Europol.

In particular,
2.
Commission and the
performance of their respective tasks, shall cooperate in:

the competent national authorities,
European Central Bank,

the
in the

— exchanging information on preventing counterfeiting and
combating the uttering of counterfeit notes and counterfeit
coins;

— providing regular information on the impact of counter-

feiting for the purposes of strategic analysis;

— ensuring mutual assistance in preventing counterfeiting and
combating the uttering of counterfeit notes and counterfeit
coins, which shall include, inter alia, scientific support and
training with the logistical support of the Member States.

3. Within the framework of mutual assistance, the national
central offices referred to in Article 12 of the Geneva Conven-
tion and the European Central Bank and, where necessary, the
Commission shall, within the framework of their respective
powers and without prejudice to the role of Europol, make
provision for a system for the communication of technical data
(early warning).

Article 8

Centralisation of information at national level

1. Member States shall ensure that, as soon as any case of
counterfeiting is detected,
is
communicated to the national central office with a view to its
being forwarded to Europol through the Europol national unit.

information at national

level

2. Member States shall
take the necessary measures to
ensure that the establishments referred to in paragraph 1 which
fail to discharge their obligations under the said paragraph are
subject to effective, proportionate and deterrent sanctions.

2. Member States shall take all measures necessary to ensure
the exchange of information between the national central office
and the Europol national unit.

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Article 9

External relations

Article 11

Unauthorised notes

1.
The Commission and the Member States shall cooperate
with non-member countries and international organisations in
close association with the European Central Bank. Such
cooperation shall include the assistance necessary to prevent
and combat counterfeiting of the euro, in accordance with the
provisions relating to the prevention of unlawful activities
contained in cooperation, association and pre-accession agree-
ments.

As far as possible the provisions laid down in Articles 3, 4, 7, 8
and 9 shall apply to notes denominated in euro which have
been produced with the use of lawful facilities or equipment in
violation of
the provisions in accordance with which the
competent authorities may issue currency, or uttered in viola-
tion of the conditions in accordance with which the competent
authorities may utter currency and without the consent of
those authorities.

The Council shall ensure that cooperation, association
2.
and
European
pre-accession
Community and non-member countries include provisions
enabling Article 3(2) to be applied.

agreements

between

the

CHAPTER 5

FINAL PROVISIONS

Article 10

Competent national authorities

Article 12

Applicability

Articles 1 to 11 shall have effect in those Member States which
have adopted the euro as their single currency.

Article 13

Entry into force

1. Member States shall send the European Central Bank and
the Commission a list of the competent national authorities
referred to in Article 2(b).

Those lists shall be published in the Official Journal of the

2.
European Communities.

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

It shall apply from 1 January 2002. However, it shall apply
from the date of its publication to notes and coins which have
not yet been issued but which it is intended to issue.

This Regulation shall be binding in its entirety and directly applicable in the Member States in
accordance with the Treaty establishing the European Community.

Done at Luxembourg, 28 June 2001.

For the Council

The President

B. ROSENGREN