Opinion of the European Central Bank of 20 April 2016 on the authenticity and fitness checking of euro banknotes and their circulation (CON/2016/25)
Date: 2016-04-20
Institutions: European Central Bank
Subjects: Italy, euro, money

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 20 April 2016 

on the authenticity and fitness checking of euro banknotes and their circulation 

(CON/2016/25) 

Introduction and legal basis 

On  2  March  2016,  the  European  Central  Bank  (ECB)  received  a  request  from  the  Banca  d’Italia  for  an 

opinion on draft amendments to a Banca d’Italia act laying down secondary provisions on the authenticity 

and fitness checking of euro banknotes and their circulation (hereinafter the ‘draft legislation’).  

The  ECB’s  competence  to  deliver  an  opinion  on  the  draft  legislation  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/EC of 29 June 1998 on the consultation of the European Central 
Bank  by  national  authorities  regarding  draft  legislative  provisions 1,  as  the  draft  legislation  concerns 

currency  matters,  means  of  payment  and  the  Banca  d’Italia.  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 secondary legislation 

1.1  The draft legislation takes into account certain legislative developments at European and national 
level 2,  and  reflects  the  experience  gained  by  the  Banca  d’Italia  in  relation  to  the  inspection  and 

remote monitoring  of  cash  handlers.  More  specifically,  the  draft  legislation:  (i)  further  clarifies  the 

procedural  and  technical  requirements  applicable  to  cash  handlers,  (ii)  lays  down  administrative 

sanctions  and  corrective  measures 

for  non-compliance  with  such 

requirements,  and 

(iii) streamlines procedures on statistical reporting by cash handlers. 

1  
2  

OJ L 189, 3.7.1998, p. 42.  

In  particular,  Decision  ECB/2010/14  of  the  European  Central  Bank  of  16  September  2010  on  the  authenticity  and 
fitness checking and recirculation of euro banknotes (OJ L 267, 9.10.2010, p. 1); Article 97 of Decree Law No 1 of 24 
January  2012  on  urgent  provisions  on  competition,  infrastructure  development  and  competitiveness,  which  was 
converted  into  Law  No  27  of  24  March  2012  containing  legal  provisions  for  the  protection  of  the  euro  from 
counterfeiting; and Article 145 of Legislative Decree No 385 of 1 September 1993 as amended by Legislative Decree 
No 72 of 12 May 2015. 

 
 
 
 
 
                                                 
ECB-PUBLIC 

2. 

General observations 

2.1  The ECB considers that the draft legislation will improve the procedures regarding the authenticity 

and  fitness  checking  of  euro  banknotes  and  their  circulation,  thus  ensuring  continued  public 

confidence in the euro.  

2.2  The  ECB  notes  that  the  draft  legislation  uses  the  term  ‘damaged  banknotes’.  So  far,  the  draft 

legislation  only  refers  to  Decision  ECB/2010/14  as  a  regulatory  source.  However,  Decision 

ECB/2010/14  does  not  refer  to  ‘damaged  banknotes’.  Article 2(11)  of  Decision  ECB/2010/14 

defines the term ‘unfit euro banknotes’ and Annex III to the Decision refers to defects with regard to 

specific  features  that  would  cause  a  euro  banknote  to  be  categorised  as  unfit  for  circulation. 
However, another ECB legal act, Decision ECB/2013/10 of the European Central Bank 3, uses the 

term ‘damaged banknotes’. The ECB therefore recommends integrating Decision ECB/2013/10 into 

the list of regulatory sources referred to in the draft legislation. 

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

Done at Frankfurt am Main, 20 April 2016. 

[signed] 

The President of the ECB 

Mario DRAGHI 

3  

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). 

2