Banks want harsher penalties for currency counterfeiters

MANILA, Philippines — Banks are strongly supporting the call of the Bangko Sentral ng Pilipinas (BSP) for the imposition of harsher penalties against counterfeiters and coin hoarders as part of efforts to strengthen currency operations and maintain the integrity of banknotes and coins.

In a statement, the Bankers Association of the Philippines (BAP) said the group is strengthening its partnership with the central bank to eradicate sources of counterfeit banknotes.

“The making and importing of counterfeit money is a criminal act, and we join the BSP’s call for vigilance in identifying counterfeit money. The partnership between the BSP and BAP, together with a vigilant public, will pave the way for ensuring that counterfeit money and their sources are fully eradicated,” it said.

The group assured the public that the banking industry is a proactive partner in eradicating the circulation of counterfeit banknotes.

Banks, according to the BAP, implement strict cash management services protocols and meticulous security procedures to follow BSP guidelines for the transit and loading of fit banknotes in ATMs.

It said banknotes from the BSP Cash Management Department are timely, safely and securely transported for loading to ATMs.

“While bills in ATMs do not come directly from a bank’s transactions of the day, banks have always maintained qualified personnel trained and equipped to identify counterfeit banknotes to prevent these fake banknotes from entering the banking system,” the BAP said.

In the event, however, that the public suspects they are holding a counterfeit banknote, the group is encouraging everyone to immediately report to the authorities for the immediate resolution of the issue.

BSP Governor Benjamin Diokno earlier said the regulator is preparing legislative proposals that aim to raise the penalty of imprisonment for crimes involving currency counterfeiting and to criminalize the unnecessary accumulation or hoarding of coins

“These proposed measures are expected to further strengthen BSP’s currency operations covering production, distribution, deposit-taking from banks, authenticity verification, anti-counterfeiting operations, and retirement,” Diokno said.

Under current laws, the counterfeiting of Philippine money carries a jail sentence of at least 12 years and a day, and a maximum fine of P2 million.

To complement this, the BSP is also pushing for the enactment of a law that will define the crime of hoarding of coins and provide penalties for the commission of said offense.

From 2010 to 2021, the BSP carried out 110 law enforcement operations which resulted in the arrest of 179 suspects. These activities also led to the seizure of more than 12,400 pieces of counterfeit Philippine banknotes with a notional value of more than P7.8 million and more than 14,300 pieces of counterfeit   dollar banknotes with a notional value exceeding $92.5 million.

The BSP, in collaboration with Bureau of Customs and National Bureau of Investigation (NBI), also confiscated Philippine peso coins with an estimated value of P50 million due to unexplained accumulation and possible connection with illegal activities.