THE BANKNOTE RE-CIRCULATION FRAMEWORK MAY SOUND A BIT INTIMIDATING...BUT LIKE EVERYTHING ELSE, IT'S EASY WHEN YOU KNOW HOW....

IT’S ACTUALLY BEEN AROUND FOR AGES…

Although there were provisions in EU law to protect against counterfeiting prior to the introduction of the euro in 2002, the implementation of The European Central Bank’s Banknote Re-circulation Framework (BRF) as we know it today, actually began in late 2004 / early 2005. It was rolled out over the following two years and was fully in place by the end of 2007.

The objective of the framework is to promote public confidence and protect the integrity of the Euro currency by setting out very specific rules to ensure that the authenticity and fitness of euro banknotes is carried out with machines tested by the Eurosystem and listed on the ECB website, before being redistributed to the public.

Requirements

The Banknote Recirculation Framework requires all credit institutions as well as all cash handlers (See Council Regulation EC click here,) to comply with a set of rules governing how banknotes are checked, recycled and returned to the public. Sanctions may apply to organisations found to be in breach of these rules.

Some of the key points from the Banknote Re-circulation Framework guidance document are listed below;

  • Banknotes shall only be returned to circulation via ATMs or other customer-operated devices if they have been checked for both authenticity and fitness by banknote handling machines successfully tested by the European Central Bank or National Central Bank.
  • It is the responsibility of the credit institutions and other professional cash handlers, in cooperation with the manufacturers, to update their machines by installing the latest version of the updated authentication hardware and/or software on the machines, as obtainable from the respective manufacturers.
  • Banknotes which have been checked for authenticity by trained staff members, either manually or without the use of successfully tested banknote handling equipment, shall not be returned to circulation via ATMs or other customer-operated devices, but can only be re-issued over the counter after being checked for fitness.
  • Banknotes that are not checked for authenticity and fitness shall not be re-issued and shall be returned to the responsible National Central Bank or its appointed agent(s).
  • Other organisations, particularly retailers, whether or not they are addressed by Article 6 of the Council Regulation (EC) No 1338/2001, who operate self-service devices dispensing euro banknotes to the public (e.g. ATMs), are expected to duly check the banknotes for authenticity and fitness in accordance with the standards set out in this framework. The Eurosystem will follow developments in this area.
  • Ensuring a high-level detection of counterfeits and preventing their re-issue is of paramount importance. Therefore, the banknote handling machines used for authenticating euro banknotes must be able to identify and to separate counterfeit euro banknotes from genuine ones in a reliable way. Credit institutions recycling euro banknotes over the counter shall ensure that these banknotes are authenticated at least by (ECB or NCB) trained staff.

SO WHAT DOES THE BANKNOTE RE-CIRCULATION FRAMEWORK MEAN FOR ME?

In a nutshell, if you are a credit institution or professional cash handler you must have the processes and approved equipment in place to be able to ensure that every banknote you receive is checked for counterfeit, damage or mutilation before being redistributed to the public.

It is a Banknote Recirculation Framework principle that all banknotes issued through an ATM or a customer operated cash recycling machine must be checked for authenticity and fitness by equipment which has passed ECB testing within the last 12 months.

To view the current list of ECB tested customer or staff operated machines, visit: https://www.ecb.europa.eu/euro/cashprof/cashhand/recycling/html/tested.en.html

WHAT SHOULD I DO WITH DAMAGED BANKNOTES?

Banknotes which are damaged or mutilated (e.g. partially burnt, cut or decomposed) will be replaced by the Irish Central Bank free of charge, upon receipt of a completed MN1 form, provided more than half of the damaged note is submitted.

This provision does not cover counterfeit notes or coin.

More information on the Irish Central Bank procedures can be found at https://www.centralbank.ie/consumer-hub/notes-and-coins/exchange-of-notes-and-coins

WHAT SHOULD I DO WITH SUSPECTED COUNTERFEIT BANKNOTES?

If you believe you are in possession of a counterfeit you must submit it to your local financial institution (for example, your bank), the Gardaí, or the Central Bank National Analysis Centre/Coin National Analysis Centre (NAC/CNAC). You can contact the National Analysis Centre online. Please include your details along with details of the suspect counterfeit and any details of the source of the banknote or coin.

Financial institutions are obliged by law to retain suspect counterfeit notes or coin and submit them to the Central Bank NAC/CNAC.

If you submit a suspect note or coin to your local financial institution you should get a receipt to confirm your submission as no refund will be given at this time. If the banknote or coin is deemed genuine you will be given the value of the note (through your bank). If you send suspect notes or coins to NAC or CNAC you will be sent a letter acknowledging the submission and if deemed genuine a replacement will be sent to you by post.

However if the banknotes or coins are counterfeit you will get no refund.

HOW CAN MONEY POINT HELP?

Here at Money Point we have been developing and implementing approved cash handling solutions for our customers for over 27 years. Throughout this time, we have worked closely with both the European Central Bank and the Irish Central Bank to ensure that our customers are informed and compliant with the Banknote Recirculation Framework.

We supply a large range of ECB tested products including counterfeit detection units, cash deposit and recycling solutions and high volume banknote counters and sorters. Visit our Product Section now.

If you are unsure as to whether your business is compliant with the Banknote Recirculation Framework and you would like a FREE CONSULTATION with one of our Sales Consultants, simply complete our Request a Callback form.

Article Sources: www.centralbank.ie / www.ecb.europa.eu / www.citizensinformation.ie / www.eur-lex.europa.eu / www.new-euro-banknotes.eu
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