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)
Date: 2015-11-20
Institutions: European Central Bank
Subjects: Belgium, administrative sanction, counterfeiting, fight against crime, money, national law

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/EC1,  since  the  draft  Royal  Decree  concerns  currency  matters,  means  of  payment  and 

the NBB. 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 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  circulation.  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  1338/20012  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 

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2  

3  

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).  

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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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 suitable 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 circulation, any breach of the new obligations imposed upon 

cash  handlers may  give rise to an  administrative fine 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 preservation of the quality of cash in circulation4. The 

ECB,  while  reiterating the remarks previously expressed 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 974/985, any restriction on the use or circulation of such banknotes has to be 

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5  

See  Opinions  CON/2011/64  and  CON/2013/43.  All  ECB  opinions  are  published  on  the  ECB’s  website: 
www.ecb.europa.eu. 

Council Regulation (EC) No. 974/98 of 3 May 1998 on the introduction of the euro (OJ L 139, 11.5.1998, p. 1). 

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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/2013/106.  

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 ECB7.  

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  

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7  

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). 

See page 5 of the explanatory memorandum.  

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