Opinion of the European Central Bank of 11 July 2016 on the method and procedure for counting, sorting, packaging and labelling of banknotes and coins (CON/2016/36)
Date: 2016-07-11
Institutions: European Central Bank
Subjects: Poland, euro, money, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 11 July 2016  

on the method and procedure for counting, sorting, packaging and labelling of banknotes and 

coins 

(CON/2016/36) 

Introduction and legal basis 

On 13 June 2016 the European Central Bank (ECB) received a request from the President of Narodowy 

Bank  Polski  (NBP)  for  an  opinion  on  a  draft  ordinance  of  the  President  of  NBP  on  the  method  and 

procedure to be used in counting, sorting, packaging and labelling packages of banknotes and coins, and 

in  conducting  activities  related  to  the  supply  of  banknotes  and  coins  to  banks  (hereinafter  the  ‘draft 

ordinance’). 

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 second indent of Article 2(1) of Council Decision 98/415/EC 1, 

as the draft ordinance relates to means of payment. 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 ordinance 

1.1  The  draft  ordinance  is  intended  to  replace  Ordinance  No  19/2007  of  the  President  of  NBP  of                  

24  October  2007  on  the  method  and  procedure  to  be  used  in  counting,  sorting,  packaging  and 

labelling  packages  of  banknotes  and  coins,  and  in  conducting  activities  related  to  the  supply  of 
banknotes and coins to banks2, on which the ECB commented in Opinion CON/2007/283.  

1.2  Particularly  in  view  of  the  need  to  update  and  adapt  the  legal  provisions  to  new  solutions  and 

technologies  used  in  the  banking  sector,  the  draft  ordinance  introduces  (1)  certain  reporting 

requirements  for  banks  regarding  amounts  of  banknotes  and  coins  subject  to  currency 

management  processes,  (2)  banknote  fitness  assessment  criteria,  and  (3)  requirements  for 

banknote  handling  machines,  including  the  method  for  classifying  banknotes  by  these  machines 

and the requirement to conduct tests on these machines, at which a representative of NBP may be 

present.  The  draft  ordinance  also  implements  certain  solutions  aimed  at  improving  the  safety  of 

cash circulation. 

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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). 
Published in Dz. Urz NBP of 2015, item 8. 
See Opinion CON/2007/28. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 

 
 
 
 
 
                                                 
1.3 

In  addition,  the  draft  ordinance  contains  provisions  relating  to  foreign  currency.  The  definition  of 

that term means that the provisions of the draft ordinance dealing with foreign currency apply to the 

euro. This includes rules on the method and procedure for counting, sorting, packaging, labelling, 

lodgement  and  withdrawal  of  foreign  banknotes,  and  the  verification  of  the  authenticity  of 

ECB-PUBLIC 

banknotes and coins.  

2. 

General observations 

2.1  As  noted  in  Opinion  CON/2007/28 4  in  relation  to  the  predecessor  ordinance,  the  draft  ordinance, 

which forms part of a wider regulatory framework on currency management, needs to comply with 
the  directly  applicable  provisions  of  Council  Regulation  (EC)  No  1339/2001 5  as  regards  euro 

banknotes and coins.   

2.2  Article  1  of  Regulation  (EC)  No  1339/2001  extends  the  application  of  Article  6  of  Council 
Regulation  (EC)  1338/20016  to  Member  States  which  have  not  adopted  the  euro  as  their  single 

currency. In accordance with Article 6(1) of Regulation (EC) 1338/2001 cash handlers are obliged 

to carry out checks on the authenticity of euro banknotes in line with the procedures defined by the 
ECB. The ECB has defined these procedures in Decision ECB/2010/14 7. 

2.3  However,  by  virtue of Article 6(1a)  of Regulation (EC) 1338/2001  Member States which  have  not 

adopted the euro as their single currency may make use of a derogation. If these Member States 

make  use  of  this  option,  they  can  allow  cash  handlers  to  carry  out  checks  on  the  authenticity  of 

euro banknotes by trained personnel. Where a machine is used, this machine however needs to be 

fully compliant with the ECB recirculation framework. Although the obligation established by Article 

6  of  Regulation  (EC)  1338/2001  in  conjunction  with  Article  1  of  Regulation  (EC)  1339/2001  is 

directly  applicable  in  Poland  and  takes  precedence  over  national  law,  the  ECB  would  encourage 

the  NBP  to  include  a  specific  reference  to  this  obligation  in  the  draft  ordinance  to  promote  legal 

certainty for its addressees. 

2.4  Going  beyond  the  provisions  of  directly  applicable  Union  law,  in  view  of  Poland’s  prospects  of 

adopting the euro in the future and the related obligation to align Polish law with the Eurosystem’s 

legal framework, the ECB would welcome the draft ordinance establishing a legal framework at  

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6  

7  

See paragraph 2.2 of Opinion CON/2007/28. 
Council  Regulation  (EC)  No  1339/2001  of  28  June  2001  extending  the  effects  of  Regulation  (EC)  No  1338/2001 
laying down measures necessary for the protection of the euro against counterfeiting to those Member States which 
have not adopted the euro as their single currency (OJ L 181, 4.7.2001, p. 11). 
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 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). For euro coins, the authenticity check procedure is 
provided for in Regulation (EU) No 1210/2010 of the European Parliament and of the Council of 15 December 2010 
concerning authentication of euro coins and handling of euro coins unfit for circulation (OJ L 339, 22.12.2010, p. 1). 

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national level that is consistent  with the  ECB  legal framework applicable to the protection of euro 

banknotes.  

ECB-PUBLIC 

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

Done at Frankfurt am Main, 11 July 2016. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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