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Counterfeit Notes and Coins

Answer

The Bank of England's Annual Report for 2009 reported that counterfeits accounted for just 0.0046 per cent of the 12 billion banknotes sorted in high-speed note sorting machines by members of the note circulation scheme. About 85 per cent of counterfeit notes are taken out of circulation by this method. For the calendar year 2009 there were 566,000 counterfeit banknotes removed from circulation, with a face value of £11.1 million: this marked a 20 per cent fall on 2008. Ninety-five per cent of these were £20 notes. For coins, the most recent survey conducted by the Royal Mint found that its sample contained a £1 coin counterfeit rate of 2.81 per cent. This would give an approximate total value of £41 million for counterfeit £1 coins in circulation. The Royal Mint does not currently undertake regular surveys for other denominations. It is widely believed (by the Royal Mint, the Serious Organised Crime Agency and industry partners) that there is not a significant counterfeit issue with any other denominations. There are a number of elements to the prevention of counterfeit notes and coins. Issuing authorities are responsible for designing banknotes and coins with appropriate security features, educating the public and retailers about the security features, and working with the cash supply industry to ensure that there are robust systems for the removal of counterfeits from circulation. Local police authorities and the National Central Office for the Suppression of Counterfeit Currency within the Serious Organised Crime Agency are responsible for finding and stopping the criminals involved in the production, distribution and passing of counterfeit notes and coins. Counterfeit banknotes and coins are worthless, with the face-value loss being borne by the individual or company deemed to be in possession of the counterfeit at the time of discovery. Issuing authorities do not replace counterfeit notes and coins with genuine notes and therefore do not suffer any face-value loss or replacement costs for their discovery.

Secondary information

Type

Written question

Reference

1900; 720 c475-6WA

Session

2010-12

Notes

Answer received between Monday 9 August and Monday 16 August 2010.

Subjects

Crime prevention Costs Bank notes Coinage Forgery

Link

View this Written question on www.publications.parliament.uk