Cash Recirculation and the Fight against CounterfeitingThe Austrian Approach

Moscow, 19 April 2012

Friedrich HammerschmidtOesterreichische Nationalbank (OeNB)Deputy Head of Cashier’s DivisionHead of National Counterfeit Centre

Agenda

Introduction

PART I: Cash recirculation in Austria• Introduction• OeNB Test Centre

PART II: Communication measures

PART III: Statistical evidence on counterfeiting

The Oesterreichische Nationalbank (OeNB)

The OeNB is the central bank of the Republic of Austria.

The headquarters are located in Vienna.

Basic Facts about the Eurosystem and Austria (1)

EurosystemPopulation (2011): 332 million

AustriaPopulation (2011): 8,4 millionin % of Eurosystem: 2,54%

The OeNB as a Logistical Hub

Central-, Eastern- and Southeastern EuropeEurosystem

Launch stock in 2007

94.5 million banknotes

Launch stock in 2009

188 million banknotesSlovakia

Slovenia

Basic Facts about the Eurosystem and Austria (2)

Eurosystem:

Cash in circulation (December 2011): 912 billion EUR

Basic Facts about the Eurosystem and Austria (3)

Austria:

Cash in circulation (estimated): 25 billion EUR

Capital key (OeNB‘s fully paid-up capital share since 1 January 2011): 2.7750%

ATS

EUR

25 bill.

417 mio pieces

0,36 bill.

47 mio pieces

PART I

Cash Recirculation in Austria

Cash Recirculation in Austria: Basic Conditions

Cash processing centres most of the cash processing is performed by the GSA (controlled and

monitored by the OeNB)

Recirculation activities significant increase of recirculation activities in self-service areas of

commercial banks (customer operated banknote handling machines)

ATMs cash dispensers are either filled with banknotes processed by Eurosystem

NCBs or with banknotes checked for authenticity and fitness by adequate (tested) banknote handling machines

Over-the-counter transactions issuance of fit and genuine banknotes by trained staff only OeNB offers cash training sessions free-of-charge

Cash Recirculation in Austria: Statistics (1)

12 BPS1000

1,605,000,000 processed banknotes

= 91%

Credit institutions

527 cash recycler

196 staff-operated BHM

150,000,000 processed banknotes

= 9%

Source: OeNB, 2011

Cash Recirculation in Austria: Statistics (2)

The OeNB Test Centre: Mandate (1)

• Examining and testing– Prototypes

– Banknote authentication devices

– Individual machine components (sensors)

– Banknote recycling machines

– Banknote counting machines

– Coin processing machines (in cooperation with the Austrian Mint)

• Cooperating with various partners– Machine and component manufacturers

– ECB and NCBs

– NAC, NCC and CNAC

– Other national institutions (Mint, Printing works, police,…)

The OeNB Test Centre: Mandate (2)

• Implementing the Banknote Recycling Framework (BRF) in Austria– Prepared and implemented by the OeNB Test Centre

– Agreement on a common framework for the detection of counterfeits and fitness sorting

– Signed by all Austrian banking associations

– Entry into force: December 29, 2006

– Providing assistance for all actors (commercial banks, CITs) in complying with the framework

• Monitoring– Target groups: GSA, credit institutions, professional cash handlers

– Data collection on recycling activities according to the BRF

– On-site inspections (planned)

The OeNB Test Centre: Statistics

Positively Tested Banknote Handling Machines 2005 - 2011

The OeNB Test Centre: Future Challenges

Customer-operated cash handling machines become increasingly important

Euro series 2 (new and/or adjusted sensors)

European level playing field

Compliance (possible sanctions)

PART II

Communication Measures

Introduction: Why Do We Communicate on Cash?

• Submit information– security features

– cash infrastructure

– changeover information

• Create image– of the euro

– of the central bank

• Fight counterfeiting– Training

– examples of counterfeits

The image of cash triggers the image of a central bank!

Cash is the most visible product / activity of a central bank!

The better people know their money, the better they identify counterfeits!

Introduction: OeNB’s Communication Measures (1)

• Cash training sessions for individuals andcash experts

• Euro Bus Tour

• Euro Kids Tour

Introduction: OeNB’s Communication Measures (2)

• Means of payment Newsletter

• Cooperation with newspapers, radio and TV stations

• Events (fairs, shopping malls…)

• Numerous leaflets and brochures

• Press releases and press conferences

• The OeNB website

The OeNB Website Related to Cash

Information about euro cash

General information

More detailed information

General public

(all internet users)

„Cash experts“

(registration required)

PART III

Statistical evidence on counterfeiting

Counterfeits withdrawn from circulation - Austria

Total Loss Incurred from Euro Counterfeits in Austria

Counterfeits withdrawn from circulation – Euro area

Austrian share in total number of euro counterfeits

Counterfeits per 100,000 Banknotes in Circulation

Thank You For Your Attention!