Rise of Counterfeit Banknotes in Malta

In recent months, concerns over counterfeit banknotes have intensified in Malta, prompting the Central Bank of Malta to address the issue head-on. Despite not having received formal reports about counterfeit currency, a video circulating on social media has highlighted the problem. This article explores the current situation, the response from the Central Bank, and provides comprehensive guidance on how to detect and handle counterfeit banknotes.

The Emergence of Counterfeit Banknotes

The issue of counterfeit banknotes in Malta has gained prominence following the widespread dissemination of a video on social media. The video features an individual who claims to have encountered counterfeit €5, €10, €20, and €50 notes. The person in the video pointed out the absence of the usual silver security strip and noted that the banknote was not transparent when held up to the light. The video specifically highlighted the serial number PMI25782181 on a €20 note, which has raised concerns among the public.

Central Bank’s Acknowledgment and Response

In response to the growing concerns, a spokesperson from the Central Bank of Malta confirmed that counterfeit notes bearing the serial number PMI25782181 have indeed been detected in several EU Member States. The Central Bank has been proactive in addressing the issue, emphasizing that these counterfeit notes are distinguishable from genuine ones due to the lack of essential security features.

The Central Bank’s spokesperson explained that genuine €5, €10, €20, and €50 banknotes possess several security elements designed to prevent counterfeiting. These include a watermark, a security thread, color-changing numbers, and a small transparent window with a portrait of Europa. Counterfeit notes, however, lack these critical features and are marked with the word “PROP” on both sides, making them easily distinguishable from authentic currency.

Law Enforcement Involvement

The Malta Police and the Financial Crimes Unit have been actively involved in investigating the counterfeit banknote issue. Although the Central Bank had not received formal reports, the involvement of law enforcement agencies underscores the seriousness of the situation. The police and the Financial Crimes Unit are working diligently to trace the source of the counterfeit notes and to prevent their further circulation.

The Central Bank has pledged full cooperation with these investigative efforts, providing any necessary information and support to aid in the resolution of the issue. This collaborative approach aims to ensure that counterfeiters are identified and brought to justice, thereby safeguarding Malta’s financial system.

Educational Campaigns and Public Awareness

One of the Central Bank’s key strategies in combating counterfeit currency is its ongoing educational campaign. This initiative involves representatives visiting various sectors of the community, including retailers, schools, local councils, and businesses. The goal is to educate individuals and organizations about the security features of genuine banknotes and how to identify counterfeit ones.

The spokesperson for the Central Bank emphasized that these educational efforts serve as the “first line of defense” against counterfeiters. By raising awareness and providing practical information, the Central Bank aims to empower the public to recognize and report fake currency effectively. This proactive approach is essential in preventing the spread of counterfeit notes and maintaining the integrity of Malta’s currency.

Guidelines for the Public

The Central Bank has issued detailed guidelines for the public on how to spot counterfeit banknotes. The recommended “feel, look, and tilt” method is designed to help individuals assess the authenticity of banknotes quickly and accurately. Here is an expanded explanation of each step:

Feel the Paper: Genuine banknotes are made from a firm, crisp paper that feels different from regular paper. When handling a banknote, you should be able to feel raised lines on the edges and thicker lettering and numbers. The texture of the paper and the raised elements are distinct characteristics of authentic currency.

Look at the Banknote Against the Light: Hold the banknote up to the light to examine several security features. Genuine notes have a watermark, a security thread embedded in the paper, and a transparent window with a portrait of Europa. These features are visible when the banknote is held up to the light and are designed to be difficult to replicate.

Tilt the Banknote: Tilting the banknote reveals additional security elements. Genuine banknotes have color-changing numbers that shift from emerald green to deep blue when tilted. The hologram on the silver strip displays the denomination, the main image, and the € symbol, with rainbow-colored lines appearing around the value number. These visual effects are created using advanced printing techniques that are challenging for counterfeiters to reproduce.

If a banknote appears suspicious after using these methods, it is likely counterfeit. The Central Bank advises individuals to refuse acceptance of such notes and to report them to the police or relevant national authorities immediately. Prompt reporting helps authorities track and manage counterfeit currency effectively.

Legal Implications

It is crucial to understand the legal implications of handling counterfeit banknotes. Passing on a counterfeit banknote, whether knowingly or unknowingly, is a criminal offense. Counterfeit currency is essentially worthless, and individuals who accept or attempt to pass on fake notes will not receive compensation. The Central Bank stresses the importance of vigilance and adherence to guidelines to avoid legal repercussions and contribute to the fight against counterfeiters.

Additional Guidance for Businesses

For businesses that handle large amounts of cash, the Central Bank has provided additional guidance to manage counterfeit banknotes effectively. Employers should implement a plan for dealing with suspicious banknotes and train staff to recognize and handle potential counterfeit currency. Here are some key points for businesses to consider:

Staff Training: Ensure that employees are trained to identify counterfeit banknotes using the “feel, look, and tilt” method. Regular training sessions and updates on security features will help staff stay informed and vigilant.

Handling Suspicious Banknotes: If staff receive a suspicious banknote, they should refuse to accept it and request an alternative payment method from the customer. Any incidents involving counterfeit notes should be reported immediately to the police or a security officer.

Reporting Incidents: Businesses should report any encounters with counterfeit currency to the police, a local bank, or the Central Bank of Malta. Providing detailed information about the counterfeit note and the individual who presented it will assist authorities in their investigation.

Avoiding Risk: If a counterfeit note is accidentally accepted, it must not be passed on. Instead, it should be handed over to the appropriate authorities for investigation. Ensuring that counterfeit notes are not circulated further is crucial in maintaining the integrity of the financial system.

Conclusion

The rise of counterfeit banknotes in Malta has prompted a comprehensive response from the Central Bank and law enforcement agencies. Through educational campaigns, public awareness efforts, and collaboration with authorities, the Central Bank is working to address the issue and prevent the spread of fake currency. By following the guidelines provided and remaining vigilant, both individuals and businesses can contribute to combating counterfeit currency and protecting Malta’s financial system.

FAQs

What actions is the Central Bank of Malta taking to address counterfeit banknotes?
The Central Bank is conducting educational campaigns, collaborating with law enforcement, and providing guidance to the public and businesses to address the issue of counterfeit banknotes.

How can I identify a counterfeit banknote?
Use the “feel, look, and tilt” method: feel the texture of the paper, check security features under light, and observe color-changing elements when tilting the note.

What should I do if I suspect a banknote is counterfeit?
Do not accept the note. Report any suspected counterfeit banknotes to the police or relevant authorities immediately to prevent their circulation.

What security features should I look for on genuine banknotes?
Genuine banknotes have a watermark, a security thread, color-changing numbers, and a transparent window with a portrait of Europa. These features are visible when examining the note closely.

What advice is there for businesses handling large amounts of cash?
Businesses should train staff to identify counterfeit banknotes, refuse suspicious notes, and report any incidents to the police or security officers.

What should be done if a counterfeit note is accidentally accepted?
If a counterfeit note is accidentally accepted, it should not be passed on. Instead, it should be handed over to the police, a local bank, or the Central Bank of Malta.

Is it illegal to pass on a counterfeit banknote?
Yes, passing on a counterfeit banknote is a criminal offense. Counterfeit currency is worthless, and individuals involved in such activities may face legal consequences.

How can businesses prepare to handle counterfeit banknotes?
Businesses should implement training programs for staff, establish procedures for handling suspicious notes, and report any incidents involving counterfeit currency.

What happens when a counterfeit note is reported to authorities?
Authorities will investigate the report and take necessary actions to trace the source of the counterfeit notes and prevent further circulation.

Why is it important to follow the Central Bank’s guidelines on counterfeit notes?
Following the guidelines helps prevent the spread of counterfeit currency, protects the financial system, and ensures compliance with legal requirements.