The Central Bank of Malta is inviting public comment on a new legal framework to regulate the redistribution, sorting and reissue (i.e. ‘recycling’) of euro banknotes. The proposed new framework will primarily affect banks, financial institutions and other organisations that recycle euro banknotes on a professional basis in Malta, and will oblige these to adopt Eurosystem-wide standards in performing authenticity and quality tests on any banknotes that are to be redistributed to the public.

The Bank intends to bring into force measures that will implement the Eurosystem Banknote Recycling Framework, the common Eurosystem regime for the detection and withdrawal from circulation of counterfeit and soiled or damaged euro banknotes. The implementation of this framework will change the policies, procedures, methods of operation and due diligence standards applicable in Malta to banknote authentication and fitness sorting.

The consultative document is available on the Central Bank of Malta’s website www.centralbankmalta.org. Comments are to be submitted as indicated in the document by September 30, 2008.