Regulatory Bodies
Euro banknotes safeguarded by...
Legally, both the ECB and the central banks of the euro area countries have the right to issue euro banknotes. In practice, only the national central banks physically issue and withdraw euro banknotes (as well as coins). The ECB does not have a cash office and is not involved in any cash operations. As for euro coins, the legal issuers are the euro area countries. The European Commission coordinates all coin matters at euro area level.
The ECB is responsible for overseeing the activities of the national central banks (NCBs) and for initiating further harmonisation of cash services within the euro area, while the NCBs are responsible for the functioning of their national cash-distribution systems. The NCBs put banknotes and coins into circulation via the banking system and, to a lesser extent, via the retail trade. The ECB cannot perform these operations as it does not have its own technical departments (distribution units, banknote processing units, vaults, etc.).
European Union
European Central Bank
Bank of Greece and 17 more NCB’s
Regulatory Framework and Legislation on Euro Banknotes
Milestone decisions setting the regulatory context
The ECB and the National Central Banks (NCBs) of the Eurosystem, being the issuing authorities for the Euro banknotes are tasked with maintaining public trust in the single currency. This is done, among other things, by ensuring the integrity of the euro banknotes in circulation. For this reason, since Euro was launched on 1 January 1999, becoming the currency of more than 300 million people in Europe, in 17 of the 27 Member States of the European Union, a comprehensive regulatory framework has been constructed, aiming to protect the EU single currency.
Below there is an assortment of milestone decisions setting the regulatory context to-date, with special focus on the authenticity, fitness checking and recirculation of euro banknotes.
List of documents and references
- ECB Decision No19/2012 on authenticity, fitness checking and recirculation of Euro banknotes
Ammendment to the original ECB Decision No14/2010 on authenticity, fitness checking and recirculation of Euro banknotes.
- EU COUNCIL REGULATION No1338/2001 on Euro counterfeiting
European Council regulation laying down measures necessary for the protection of the Euro against counterfeiting.
- EU COUNCIL REGULATION No1339/2001 on Euro counterfeiting
European Council regulation extending the effects of Regulation (EC) No1338/2001 laying down measures necessary for the protection of the euro against counterfeiting to those Member States which have not adopted the euro as their single currency.
- Recycling Euro banknotes framework by ECB
ECB’s document on 05/05/01 a common framework for Euro banknote recycling.
- Extension of transition period for Euro banknotes recycling
ECB’s extension of the transition period laid down in the banknote recycling framework for six Euro area countries, including Greece. Issued on 06/02/01.
- Monetary Policy Council of Bank of Greece Act No62/2007 on Euro banknotes recycling (GR)
Act of Monetary Policy Council of Bank of Greece, on Euro banknotes handling and recycling based on EC 1338/2001. Issued at 20/02/07. Document in Greek language.
- ECB guideline on data collection on Euro and Currency Info Sys 2
The 11/09/08 guideline of ECB on data collection regarding the euro and the operation of the Currency Information System 2.
- EU Council regulation No45/2009 extending No1338/2001 on Euro counterfeiting
EU Council Regulation (EC) No45/2009 of 18 December 2008 amending Regulation (EC) No1339/2001 extending the effects of Regulation (EC) No1338/2001 laying down measures necessary for the protection of the euro against counterfeiting to those Member States which have not adopted the euro as their single currency.
- ECB Decision No14/2010 on authenticity, fitness checking and recirculation of Euro banknotes
The ECB and the National Central Banks (NCBs) of the Eurosystem, being the issuing authorities for the Euro banknotes are tasked with maintaining public trust in the single currency. This is done by ensuring the integrity of the euro banknotes in circulation, as laid down in EU Council Regulation (EC) No1338/2001. For this reason, the Governing Council of the ECB adopted on 16 September 2010 the Decision ECB/2010/14 on the authenticity, fitness checking and recirculation of euro banknotes, which became applicable on 1 January 2011.
- ECB Opinion CON/2010/87 on Euro banknotes recirculation and sanctions on protection failure
On 10/12/2006 ECB issued the CON/2010/87 Opinion on 26/10/10 Bank of Greeece (BoG) request on the draft act of Monetary Policy Council of BoG on the authenticity and fitness checking and recirculation of euro banknotes and related sanctions for failure to withdraw from circulation counterfeit euro notes.
- Monetary Policy Council of Bank of Greece Act No77/2010 on Euro banknotes recycling (GR)
Act of Monetary Policy Council of Bank of Greece on the authenticity, fitness checking, recirculation of euro banknotes and sanctions for failure to comply to ECB/2010/14 and EC/1338/2001.
- Bank of Greece implementing ECB’s decision on authenticity, fitness and recirculation of euro
Bank of Greece announced that the ECB Decision was implemented into Greek law by Bank of Greece Monetary Policy Council Act 77/17.12.2010 "Authenticity and fitness checking and recirculation of euro banknotes; imposition of penalties for failure to comply with Decision ECB/2010/14 and Council Regulation (EC) No 1338/2001". Cash handlers, within the meaning of Article 2 of the ECB Decision and of Article 6 of Council Regulation (EC) No 1338/2001, are required to observe the rules and procedures on the authenticity and fitness checking and recirculation of euro banknotes laid down in the ECB Decision.
- ECB procedure for testing banknote handling machine types
The banknote handling machines that are to be tested can be classified either as customer-operated machines or staff-operated machines. To be eligible for testing, a banknote handling machine must allow the processing of batches of euro banknotes, as well as the classification and handling of euro banknotes in accordance with Annexes IIa and IIb to Decision ECB/2010/14, without the intervention of the machine operator.
- ECB Reports on Euro banknotes and coins circulation
The statistics on this ECB page are updated around the 14th working day of each month. They cover (1) data on outstanding amounts (stocks) of euro banknotes and coins in circulation, (2) transactions data (flows) on the banknotes and coins issued into circulation, returned from circulation, sorted to check authenticity & fitness and sorted to unfit during the reporting period, (3) the number of NCBs/commercial banks branches providing cash in the euro area, (4) the value of euro collector coins not intended for circulation issued by the euro area Member States.
- Bank of Greece Technical Specifications Document on Cash Recycling Reporting
Technical Specifications Document on Cash Recycling bi-annual Reporting as laid down in Annex IV "Data Collection from Cash Handlers" ECB’s Decision ECB/2010/14.
- ECB Opinion CON/2011/51 on the circulation of banknotes and coins
On 22/06/2011 ECB issued the CON/2011/51 Opinion responding to a request from Czech NCB on a draft decree on the implementation of certain provisions of the Law on the circulation of banknotes and coins.
- ECB Guideline ECB/2011/9 on data collection regarding the euro and the CIS2 operation
On 30/06/2011, in order to respond to a lack of effective reporting tools in financial crisis situations, ECB imposed daily reporting functionalities in addition to the monthly and semi–annual ones already provided for in Guideline ECB/2008/8.
- ECB Opinion CON/2011/64 on counterfeiting protection and cash quality preservation
On 18/08/2011 ECB issued the CON/2011/64 Opinion on on the protection against counterfeiting and on the preservation of the quality of the cash circulation, responding to a request from the Banque Nationale de Belgique (NBB), acting on behalf the Belgian Ministry of Finance, for an opinion on a draft law.
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