System for protecting the euro against counterfeiting

SUMMARY OF:

Regulation (EC) No 1338/2001 – protecting the euro against counterfeiting

WHAT IS THE AIM OF THE REGULATION?

It sets up a system allowing European Union (EU) Member States to gather and exchange information on counterfeit notes and coins among themselves and with the European Central Bank (ECB), the European Commission, the European Union Agency for Law Enforcement Cooperation (Europol) and non-EU countries, where appropriate.

KEY POINTS

Scope

Regulation (EC) No 1339/2001 extends the scope of the regulation to cover non-euro-area Member States.

Main features of the system for the protection of the euro

Technical data on counterfeit euro notes and coins are systematically transmitted by Member State authorities (mainly national central banks) to the ECB; the ECB is responsible for their storage and processing.
Member State authorities must allow their national analysis centre to examine suspect counterfeit notes and allow the Coin National Analysis Centre to examine suspect coins. These bodies must send all new types of suspect notes to the ECB and all new types of suspect coins to the European Technical and Scientific Centre (ETSC).
Credit institutions, other payment service providers and other institutions that process and distribute notes and coins to the public have certain obligations. Member States must provide for effective, proportionate and dissuasive penalties applicable to institutions that fail to comply.
Cooperation (among other things, via the Pericles programme, set up under Regulation (EU) 2021/840) takes place between the relevant authorities of Member States (in particular the national central offices established under the International Convention for the Suppression of Counterfeiting Currency), the ECB, the Commission and Europol.
The information on euro counterfeiting cases is centralised nationally and transmitted to Europol.
The system also involves cooperation with non-EU countries and international organisations (including the International Criminal Police Organization (Interpol)).

Member States must communicate the list of authorities that they designate as competent to identify counterfeit notes and coins to the Commission and the ECB.

The Commission set up the Euro Counterfeiting Experts Group to:

assist in drafting proposals for legal acts or policy initiatives relating to note and coin counterfeiting;
cooperate closely with the Commission, Member States, the ETSC, the ECB and Europol;
exchange information and establish good practices on preventing and combating counterfeiting, and analyse its impact;
advise the Commission on implementing Regulation (EC) No 1338/2001 and the Pericles programme.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 1 January 2002. However, it applied from 4 July 2001 to notes and coins which had not yet been issued but which were intended to be issued.

BACKGROUND

Introduced prior to the introduction of the euro in 2002, Regulation (EC) No 1338/2001 seeks to protect euro banknotes and coins against counterfeiting.

It complements a series of decisions taken previously:

setting up national analysis centres and coin national analysis centres;
setting up the Counterfeit Analysis Centre;
gathering technical information on euro counterfeiting by the ECB and by the ETSC responsible for analysing euro coins;
introducing penal sanctions against euro counterfeiting.

For further information, see:

Anti-counterfeiting (European Commission)
Protection of the euro (European Central Bank)
Anti-counterfeiting (European Central Bank).

MAIN DOCUMENT

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, pp. 6–10).

Successive amendments to Regulation (EC) No 1338/2001 have been incorporated into the original document. This consolidated version is of documentary value only.