Cash Recirculation and the Fight against Counterfeiting The Austrian Approach Moscow, 19 April 2012 Friedrich Hammerschmidt Oesterreichische Nationalbank (OeNB) Deputy Head of Cashier’s Division Head 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) Eurosystem Population (2011): 332 million Austria Population (2011): 8,4 million in % of Eurosystem: 2,54%

The OeNB as a Logistical Hub Central-, Eastern- and Southeastern Europe Eurosystem Launch stock in million banknotes Launch stock in million banknotes Slovakia 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): % 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

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 and cash 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!