Decision of the European Central Bank of 19 April 2013 on the denominations, specifications, reproduction, exchange and withdrawal of euro banknotes (recast) (ECB/2013/10) (2013/211/EU)

Decision of the European Central Bank

of 19 April 2013

on the denominations, specifications, reproduction, exchange and withdrawal of euro banknotes

(recast)

(ECB/2013/10)

(2013/211/EU)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 128(1) thereof,

Having regard to Article 16 of the Statute of the European System of Central Banks and of the European Central Bank,

Whereas:

(1) The scope of Decision ECB/2003/4 of 20 March 2003 on the denominations, specifications, reproduction, exchange and withdrawal of euro banknotes(1) needs to be extended to cover the future series of euro banknotes. To this end, a number of technical amendments to Decision ECB/2003/4 are required. In addition, in light of the experience in applying and interpreting Decision ECB/2003/4, it is necessary to further clarify and improve some of the rules and procedures. Therefore, to incorporate the abovementioned amendments, Decision ECB/2003/4 should be recast in the interests of clarity and transparency.

(2) Article 128(1) of the Treaty and Article 16 of the Statute of the European System of Central Banks and of the European Central Bank provide that the European Central Bank (ECB) has the exclusive right to authorise the issue of euro banknotes within the Union. These provisions also provide that the ECB and the national central banks of the Member States whose currency is the euro (hereinafter ‘NCBs’) may issue such notes. Pursuant to Article 10 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro(2), the ECB and the NCBs shall put euro banknotes into circulation.

(3) The European Monetary Institute (EMI) carried out the preparatory work for the production and issue of euro banknotes, and in particular with regard to the euro banknote designs, it facilitated the recognition and acceptance of the new euro banknote denominations and specifications by users by taking into account the specific visual and technical requirements of European associations of banknote users.

(4) As successor to the EMI the ECB holds the copyright on the designs of the euro banknotes originally held by the EMI. The ECB and the NCBs, acting on behalf of the ECB, may enforce this copyright with regard to reproductions issued or distributed in breach of this copyright, such as, inter alia, reproductions which might adversely affect the standing of euro banknotes.

(5) The ECB and the NCBs will, from time to time, introduce a new series of euro banknotes with enhanced security features, benefiting from advances in banknote technology since the first series was introduced.

(6) The ECB’s and the NCBs’ right to issue euro banknotes includes the competence to take all necessary legal measures to protect the integrity of the euro banknotes as a means of payment. The ECB should take measures to provide for a minimum level of protection in all Member States whose currency is the euro in order to ensure that the general public can distinguish reproductions from euro banknotes, which are issued by the ECB and the NCBs and are not counterfeit notes under Article 2(a) of Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting(3) (hereinafter ‘genuine euro banknotes’). It is therefore necessary to establish common rules according to which the reproduction of euro banknotes will be permitted.

(7) This Decision should be without prejudice to the application of criminal law, in particular regarding counterfeiting.

(8) Reproductions of euro banknotes in electronic form should only be regarded as lawful if the producer thereof adopts adequate technical measures to deter print-outs, where the general public might mistake the print-outs for genuine euro banknotes.

(9) The competence to take measures to protect the integrity of genuine euro banknotes as a means of payment includes the competence to adopt a common regime under which the NCBs are prepared to exchange damaged genuine euro banknotes. Under this regime certain categories of euro banknotes are designated which should be withheld by NCBs when presented to them for exchange.

(10) The part of the original euro banknote that needs to be presented in order to qualify for exchange is subject to minimum measurement requirements. These measurements should be expressed as a percentage of the surface area of the original euro banknote before it was damaged, in order to prevent the distortion of measurements, for instance in situations where the euro banknote is damaged due to shrinkage.

(11) Regulation (EC) No 1338/2001 requires credit institutions and, within the limits of their payment activity, other payment service providers and any other institutions engaged in the processing and distribution to the public of notes and coins, to ensure that euro notes and coins which they have received and which they intend to put back into circulation are checked for authenticity and that counterfeits are detected.

(12) Given that damaging of genuine euro banknotes by anti-theft devices may occur in the context of a committed or attempted criminal offence, it should be ensured that in such cases banknotes can only be exchanged by the victim of such offence or attempted offence.

(13) To encourage the proper handling of anti-theft devices by all institutions and economic agents referred to in Article 6(1) of Regulation (EC) No 1338/2001, it is appropriate for NCBs to charge the banknote handlers a fee to compensate for the analysis performed with regard to the exchange of genuine euro banknotes that have been damaged by anti-theft devices.

(14) This fee should not be charged when the damage results from an attempted or actual robbery or theft, and, to avoid insignificant fees, should be charged only where a minimum number of damaged genuine euro banknotes is presented for exchange.

(15) Genuine euro banknotes which have been damaged in bulk due to the activation of anti-theft devices should be presented for exchange, if required by NCBs, in sets consisting of a minimum number of euro banknotes.

(16) To support endeavours to enhance the security of the cash cycle and to avoid penalising the use of anti-theft devices, it is appropriate to credit the institutions and economic agents, referred to in Article 6(1) of Regulation (EC) No 1338/2001, who present for exchange genuine euro banknotes accidentally damaged by anti-theft devices, on the day of receipt of such banknotes, in a manner similar to regular cash lodgements.

(17) To support the European Union’s prevention of the use of the financial system for money laundering and terrorist financing, it is appropriate for the Eurosystem to specify how to handle requests by any applicant to exchange damaged genuine euro banknotes with a value of at least EUR 7 500. Such rules are without prejudice to any stricter identification and reporting requirements adopted by Member States in transposing Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing(4).

(18) The ECB’s exclusive right to authorise the issue of euro banknotes within the Union includes the competence to withdraw euro banknotes and to establish a common regime under which the ECB and the NCBs can perform this withdrawal,

HAS ADOPTED THIS DECISION:

(1)

OJ L 78, 25.3.2003, p. 16.

(2)

OJ L 139, 11.5.1998, p. 1.

(3)

OJ L 181, 4.7.2001, p. 6.

(4)

OJ L 309, 25.11.2005, p. 15.