IDENTIFYING THE THREAT
In order to define the key requirements for a new family of banknotes, it is first necessary to review the existing series. We liaise with a variety of stakeholders, including individual discussions with the Central Bank, relevant government agencies, police, and representatives from the commercial banking and retail sectors. We consider:
- A review of the existing counterfeiting threat – real and perceived - including an assessment of:
- Current levels and methods of counterfeiting – and possibly fraudulent alteration (denomination upgrading) by type and denomination.
- National and international trends in counterfeiting
- The susceptibility of each denomination to counterfeiting
- A technical evaluation of counterfeits seized or withdrawn from circulation.
- Effectiveness of existing security features and methods of detection (retail or banking sector interception).
- Likely sources/provenance of counterfeits
- Public education programmes and their effectiveness, including which banknote features are particularly ‘noticed’ by the public
- The role of national law (deterrence effect)
- A review of the durability of banknotes in circulation with particular emphasis on:
- How long banknotes per denomination remain in circulation before being withdrawn
- Current fitness standards established by the Central Bank
- Reasons for withdrawal of banknotes from circulation
- Soiling levels/ general wear and tear per denomination
- Difficulties experienced from poor quality banknotes e.g. increased counterfeiting, and cash handling inefficiencies