Opinion of the European Central Bank of 30 October 2012 on the checking of cash (CON/2012/82)
Date: 2012-10-30
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 30 October 2012 

on the checking of cash  

(CON/2012/82) 

Introduction and legal basis 

On 4 October 2012, the European Central Bank (ECB) received a request from the Deutsche Bundesbank 

for an opinion on a draft regulation on the checking of cash (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.  

Legal basis und purpose of the draft regulation 

1.1  The  draft  regulation  is  based  on  Section 36a  of  the  Law  on  the  Deutsche  Bundesbank  in 

conjunction  with  Section 1  of  the  Regulation  on  the  delegation  of  power  to  the  Bundesbank  to 
adopt regulations pursuant to Section 36a of the Law on the Deutsche Bundesbank2. According to 

these provisions, the Deutsche Bundesbank’s Executive Board is empowered to adopt regulations 

relating to cash checking which are subject to the approval of the Ministry of Finance. 

1.2  The  purpose  of  the  draft  regulation  is  to  implement  requirements  provided  for  in  Article 6  of 
Regulation  (EC)  No  1338/20013  and  in  Decision  ECB/2010/144.  The  draft  regulation  establishes 

detailed rules concerning the taking of samples during on-site inspections of entities subject to the 

obligations laid down in Article 6 of Regulation (EC) No 1338/2001, and relating to the scope and 

manner of the reporting obligations of those entities in the context of euro banknote authentication 

and fitness checking. Furthermore, the draft regulation lays down the minimum information to be 

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4  

OJ L 189, 3.7.1998, p. 42. 
BGBl. I p. 1507. 
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). 
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). 

 
 
 
 
                                                 
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included  in  reports  which  must  be  submitted  under  Section 36  of  the  Law  on  the  Deutsche 

Bundesbank and which concern counterfeit euro banknotes and coins, or euro banknotes and coins 

suspected of being counterfeit, and other items specified in Section 35 of the Law on the Deutsche 

Bundesbank. 

2.   General observations 

2.1  The  ECB  welcomes  the  draft  regulation  and  the  fact  that  the  Deutsche  Bundesbank  exercises  its 

delegated  power,  in  accordance  with  Sections  36a  and  37a  of  the  Law  on  the  Deutsche 

Bundesbank,  to  adopt  detailed  provisions  concerning  the  checking  of  cash  and  related  reporting 

obligations.  It  is  important  that  the  Deutsche  Bundesbank  is  in  a  position  to  monitor  the 

authentication  and  fitness  checking  of  euro  banknotes  pursuant  to  Decision  ECB/2010/14.  In 

general,  the  ECB  is  confident  that  the  provisions  of  the  draft  regulation  will  help  to  protect  the 

integrity  of  euro  banknotes  in  circulation,  resulting  in  continued  public  confidence  in  euro 
banknotes5. 

2.2 

In particular, the draft regulation provides in Section 1 that, in the course of its inspections of staff-

operated  banknote  processing  systems  pursuant  to  Section  37(a)(2)  of  the  Law  of  the  Deutsche 

Bundesbank,  the  Deutsche  Bundesbank  may  take  samples  of  euro  banknotes  that  have  been 

processed  and  are  deemed  fit  for  recirculation.  It  also  provides  that  the  party  obliged  to  take 

measures shall deposit the sample with a branch of the Deutsche Bundesbank within five business 

days.  The  ECB  notes  that  the  draft  regulation  refers  to,  and  even  goes  beyond,  Article 10(2)  of 

Decision  ECB/2010/14  by  providing  for  an  obligation  to  deposit  samples  of  processed  euro 

banknotes  at  the  Deutsche  Bundesbank.  Article 10(2)  of  Decision  ECB/2010/14  stipulates  that, 

subject  to  national  law  requirements,  NCBs  are  authorised  to  take  samples  of  processed  euro 

banknotes  to  check  them  at  their  own  premises.  The  ECB  welcomes  the  fact  that  the  Deutsche 

Bundesbank  has  made  use  of  its  competence  to  adopt  a  specific  national  rule  which  is  in 

accordance  with  Article 10(2)  of  Decision  ECB/2010/14.  The  provisions  of  Section 1  enable  the 

entities  involved  to  check  whether  euro  banknotes  were  processed  in  accordance  with  Decision 

ECB/2010/14. The ECB also welcomes the fact that  the objective of Section 1 is to maintain the 

high quality of euro banknotes in circulation and to enable the entities referred to in Article 6 of 

Regulation (EC) No 1338/2001 to detect counterfeits as quickly as possible. 

2.3  Section 2 of the draft regulation is aimed at improving and harmonising the transmission of data 

concerning counterfeit money. The ECB welcomes the fact that under this provision more detailed 

information is required for the reports accompanying the submission of counterfeit money, in order 

to  enable  judicial  authorities  to  take  measures  to  prosecute  offenders  and  to  issue  warnings  to 

groups likely to be targeted by distributors of counterfeit money.  

5  

Paragraph 2.1 of Opinion CON/2010/90. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu.  

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

Done at Frankfurt am Main, 30 October 2012. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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