Brussels, 14/09/2009 (Agence Europe) - On 11 September the European Commission adopted a draft regulation, the objective of which is to lay down procedures for authenticating euro coins and for handling euro coins unfit for circulation. The regulation will apply from 1 January 2012.
Regulation 1338/2001 sets out the measures necessary for the protection of the euro against counterfeiting. Among other provisions, it requires credit institutions and cash transporters to ensure that the euro notes and coins that they have received and intend to put back into circulation are not counterfeit.
Until now, authentication of euro coins has been based on the practices set out in the Commission Recommendation of 27 May 2005, on the authentication of euro coins and handling coins unfit for circulation. However, the lack of compulsory common regulations on authentication of euro coins has meant that practices differ from one member state to another and cannot, therefore, ensure a uniform level of protection for coinage throughout the whole of the Community, the draft says. The proposed regulation constitutes a legally binding instrument “now necessary” for the establishment of a common method for euro coin authentication to be applied by the institutions concerned and of the necessary controls by member states, the Commission says.
Authentication of euro coins. Under the proposal, the institutions concerned must ensure that euro coin authentication is carried out by means of coin processing equipment able to detect counterfeits, or manually by trained staff. The coin processing equipment is to be adjusted on the basis of a detection test, the details of which will be defined by the European Technical and Scientific Centre (ETSC). Testing of these machines will be done by Coin National Analysis Centres and by the ETSC, and a list of the machines which have successfully undergone testing will be published by the Commission. Member states will be responsible for overseeing the proper functioning of the euro coin authentication system.
Handling of unfit euro coins. The Commission proposes that member states remove from circulation not only counterfeit coins but also those which are no longer fit for circulation. They will reimburse those which have been rendered unfit as a result of long circulation or accident, but could refuse to reimburse coins that have become unfit after being deliberately altered. Designated services in member states will charge a 5% levy on the value of unfit coins submitted, but will be able to offer broad exemptions to companies that cooperate closely with the authorities in removing counterfeit and unfit cons from the market.
Provision is made for reporting and communication, so that member states can be presented with an overview of the relevant activity. The proposed procedures on the euro coins are complementary to those proposed by the European Central Bank (ECB) on the detection of counterfeit banknotes and sorting them in terms of their fitness for circulation.
The proposed provisions are designed for member states which use the euro as their single currency. (L.C./transl.rt)