EU obliges banks to check euro notes and coins

The European Commission has adopted a package of measures to protect the EU currency against counterfeiting.

The main changes include an obligation on all commercial banks in the EU to ensure the authenticity of euro banknotes and coins before these are put back in circulation.

Announcing the measures, Anti-fraud Commissioner Siim Kallas said that euro counterfeiting remains a considerable illegal activity though a new Commission report shows that the security system in place to protect the EU currency is working efficiently.

"Increased vigilance and more cooperation between authorities and the industry is necessary to safeguard the use of the euro," the commissioner said. "However, we also propose to improve existing legislation. To enhance trust in the money used, the Commission is proposing that professional money handlers should be obliged to verify the authenticity of money they circulate."

According to an annual report on the protection of euro coins, just published by the EU executive, euro coin counterfeiting activity has increased, although authentication efforts have largely contributed to the detection of larger numbers of counterfeit euro coins in 2006.

The report shows that the number of euro coins removed from circulation rose to almost 164,000 pieces mainly in the €2 coin denomination.

Malta will be adopting the euro on January 1.