Counterfeit Corner

How many counterfeit banknotes are in circulation? I can’t tell you how many times I have been asked this question. So, let’s look at how counterfeit banknotes are found and reported.

There is a small chance that a cash handler will recognise a note as counterfeit and proceed to call the police to recover the note and begin an investigation. The police will usually store the counterfeits in an evidence locker until the case has been resolved, which could be years.

When the counterfeit is not detected at the point of sale, the retailer will deposit the money with a commercial bank. This is where most counterfeits are detected and reported to either the central bank/issuing authority, or to the law enforcement agency responsible for counterfeiting.