Protection of the euro against counterfeiting and on the authentication of euro coins in Luxembourg

Interesting bit of commentary on ECB’s website.

Luxembourg is placing a new law to deter counterfeiting of Euros in the country. ECB sends its views on the new law. This is a bit more interesting as ECB is a suprnational central bank not accountable to any one government. But Euro circulates in the respective countries and needs counterfeit laws:

The draft law amends five national laws in order to introduce criminal law sanctions for relevant institutions, as well as their managers and responsible staff, who fail to comply with their obligations as set out in Article 6 of Council Regulation (EC) No 1338/20016. Under that Article, relevant institutions are obliged to: (i) ensure that euro banknotes and coins which they have received and which they intend to put back into circulation are checked for authenticity and that counterfeits are detected; (ii) withdraw from circulation all euro banknotes and coins received by them which they know or have sufficient reason to believe to be counterfeit; and (iii) immediately hand over such euro banknotes and coins to the competent authorities. The relevant institutions are the addressees of Article 6(1) of Regulation (EC) No 1338/2001, which are further specified under the draft law as: (i) merchants engaged in the processing and distribution to the public of money via automated bank machines or automated dispensers; (ii) casinos and similar institutions engaged in the processing and distribution to the public of money via automated teller machines or (cash dispensers); (iii) credit institutions, and, within the limits of their payment activity, other professionals of the financial sector; (iv) companies performing private security and surveillance activities; and (v) payment institutions, within the limits of their payment activity. The foreseen criminal law sanctions consist of fines between EUR 1,250 and EUR 125,000.

1.3 The draft law also complements the BCL’s tasks in respect of euro banknotes and coins, in addition to those laid down in the Law of 23 December 1998 on the monetary status and the Banque centrale du Luxembourg (hereinafter the ‘Law on the BCL’). Firstly, the draft law formally designates the BCL as the competent authority for ensuring compliance with Council Regulation.

ECB supports most of these measures…

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