| | | News Section | | | | Banknote Recycling Framework Press Release | | | | | | PRESS RELEASE
IRELAND MUST DO MORE TO PROTECT THE PUBLIC FROM COUNTERFEIT BANKNOTES
387,000 counterfeit banknotes withdrawn from circulation in first half of 2010
Ireland must do more to protect the general public from counterfeit banknotes. That’s according to Tony Farrell, the CEO of Money Point – Ireland’s leading cash management company. Mr. Farrell was speaking today (19.07.10) after the European Central Bank announced that in the first half of 2010, 387,000 counterfeit Euro banknotes were withdrawn from circulation.
This morning’s report also showed that the vast majority of counterfeit notes are of the €20 and €50 note variety, which between them account for almost 85 per cent of the notes withdrawn this year. The ECB have asked the public to remain alert with regard to banknotes received in cash transactions.
Mr. Farrell says that there is no reason why the level of counterfeit notes should be so high, and Ireland needs to "up its game" with regard to protecting the public. "Financial institutions, including Credit Unions, Banks and Building Societies have a huge part to play. By ensuring that all banknotes issued over the counter or through an ATM by financial institutions are "fit" notes, the circulation of counterfeits will be greatly reduced," he says.
Despite European regulations, almost 90% of Credit Unions are not prepared for compliance
According to Mr. Farrell, the European Central Bank has introduced the Banknote Recycling Framework (BRF) to improve matters, but Irish financial institutions are ill prepared for the January 2011 deadline. For example, almost 90 per cent of Credit Unions are not ready to meet the requirements of the new regulation. In order to be compliant, financial institutions must ensure that all notes they handle are passed through specialist equipment to vouch for its authenticity. In the absence of this equipment, a trained staff member is required to examine every single note to ensure they are not counterfeits and are in a good state for return into circulation.
"There is just 23 weeks left for financial institutions to ensure compliance. Due to pressure on staff, it will not be feasible to introduce new systems and train staff during the lead up to Christmas, so in reality this leaves in the region of 19 weeks. There is a lead in period from the day a compliance system is ordered and the day they can actually operate that system of up to 11 weeks. This means that institutions, such as credit unions, have only a short window available to them before they run into problems of non-compliance".
Mr. Farrell has raised his concerns with a number of members of the Oireachtas Joint Committee on Economic Regulatory Affairs. "Across the political spectrum, there is agreement that this is an issue of concern for the general public, and also for Ireland’s reputation across Europe. Today’s figures remind us again of the importance of compliance, and I look forward to working with members of the committee to ensure that Irish financial institutions are compliant before the end of 2010" says Mr. Farrell.
Money Point is one of the main suppliers in Ireland of BRF-compliant machines. These machines allow cash-handlers to pass all Euro notes through a note sorter which can detect irregularities, including tears, folds and suspect notes. Under the new framework, all notes deemed unfit by the machine cannot be returned into circulation.
It is expected that from January 2011, when the deadline for compliance expires, the Central Bank will undertake monitoring and spot checks of professional cash handling institutions to ensure that they are complying with the new requirements.
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