BSP preparing proposals on harsher punishment for currency counterfeiting, penalizing coin hoarding

The Bangko Sentral ng Pilipinas (BSP) on Thursday said it is preparing legislative proposals to harshen penalties for currency counterfeiting and to criminalize the unnecessary accumulation or hoarding of coins.

The planned measures form part of the central bank’s efforts to strengthen currency operations and maintain the integrity of banknotes and coins, the BSP said in a statement.

“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,” BSP Governor Benjamin Diokno said.

The BSP said it is proposing to increase the length of imprisonment for those guilty of currency counterfeiting.

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.

The central bank said its proposal entails amendments to existing laws and will take into consideration the current economic landscape, as well as advancements in printing technologies.

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

This will involve the revival of earlier legislative initiatives against coin hoarding in the Senate and House of Representatives.

Meanwhile, the BSP said Philippine banks are responsible for ensuring that banknotes coming from their respective automated teller machines (ATMs) are legitimate.

ATM services are part of core banking function, and banks are bound by law to exercise the highest degree of diligence in protecting their clients' interest.

It is therefore the banks' responsibility to guarantee that notes coming from their ATMs are genuine.

— Benjamin Diokno (@GovBenDiokno) January 27, 2022

“ATM services are part of core banking function, and banks are bound by law to exercise the highest degree of diligence in protecting their clients’ interest,” Diokno said on Twitter.

“It is therefore the banks’ responsibility to guarantee that notes coming from their ATMs are genuine,” he added.

The central bank earlier this week reminded the public to regularly inspect the banknotes, including those dispensed by ATMs, they receive for authenticity.

It advised the public to apply the “feel, look, tilt” approach to ascertain the authenticity of the banknotes.

However, Senator Grace Poe, chairperson of the Senate banks, financial institutions, and currencies committee — said the public should not carry the burden of identifying fake bills dispensed by ATMs.

The BSP encouraged the public to immediately report any information on counterfeiting of Philippine currency to the nearest police station or law enforcement agency for appropriate action.

“The public may also reach the Payments and Currency Investigation Group (PCIG) at email address currencyinvestigation@bsp.gov.ph,” it said. — VBL, GMA News