Opinion of the European Central Bank of 10 May 2012 on the protection against counterfeiting and the quality of cash circulation (CON/2012/34)
Date: 2012-05-10
Institutions: European Central Bank
Subjects: Germany, central bank, competence of the institution, counterfeiting, money, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 10 May 2012 

on the protection against counterfeiting and the quality of cash circulation 

(CON/2012/34) 

Introduction and legal basis 

On 30 March 2012, the European Central Bank (ECB) received a request from the German Ministry of 

Finance for an opinion on a draft regulation on the delegation of power to the Deutsche Bundesbank to 

adopt regulations pursuant to Section 36a of the Law on the Deutsche Bundesbank (hereinafter the ‘draft 

regulation’).  

The ECB’s competence to deliver an opinion is based on Article 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  of  29  June  1998  on  the  consultation  of  the  European  Central  Bank  by  national 
authorities  regarding  draft  legislative  provisions1,  as  the  draft  legislation  concerns  currency  matters, 

means of payment and the Deutsche Bundesbank. In accordance with 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 draft regulation 

1.1  The  draft  regulation  is  based  on  Section  36a  of  the  Law  on  the  Deutsche  Bundesbank,  which 
became part of that Law in 20112. This provision authorises the Ministry of Finance to issue more 

detailed provisions on submission duties, including the option to notify the Deutsche Bundesbank 

about  transactions  with  banknote  handling  systems.  It  also  provides  the  option  of  delegating  the 

adoption of such provisions to the Deutsche Bundesbank’s Executive Board. The draft regulation 

aims to enable the Deutsche Bundesbank’s Executive Board to adopt implementing legislation on 

reporting  duties  on  operators  of  banknote processing systems  towards the  Deutsche  Bundesbank. 

The Deutsche Bundesbank will have to seek the agreement of the Ministry of Finance before such 

implementing legislation can be adopted. 

1.2  The explanatory memorandum to the draft regulation provides that the delegation will be granted 

on the basis of the Deutsche Bundesbank’s expertise in this field. The implementing legislation to 

be  enacted  will  contain  detailed  practical  issues  regarding  on-site  inspections  of  banknote 

1  
2  

OJ L 189, 3.7.1998, p. 42.  
See Opinion CON/2011/92. 

 
 
 
 
                                                 
ECB-PUBLIC 

processing systems and details on the reporting duties of the operators of such systems. In addition, 

it will contain templates for reporting. 

2.   General observations 

The  ECB  welcomes  the  draft  regulation  under  which  the  German  Federal  Government  exercises  its 

discretion  to  delegate  its  power  to  regulate  the  scope  and  manner  of  the  reporting  duties  of  banknote 

processing entities. The ECB expects to be consulted on any draft regulation by the Deutsche Bundesbank 

on the basis of this delegation.  

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 10 May 2012. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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