STATISTICAL REPORT ON EURO COUNTERFEITING

Transcription

1 TREASURY DEPARTMENT DIRECTORATE III INTERNATIONAL FINANCIAL RELATIONS CENTRAL MEANS OF PAYMENT ANTIFRAUD OFFICE (UCAMP) STATISTICAL REPORT ON EURO COUNTERFEITING seventh edition (January 1 st December 31 st, 2004) This document can be consulted on line at:

2 I N D E X 1. FOREWORD page 3 2. INTRODUCTION page 4 3. REPORTS RECEIVED page 5 3.a. TREND page 8 4. BANK NOTES SEIZED AND WITHDRAWN page 10 4.a. TREND page 13 4.b. MONTHLY ANALYSIS page 14 4.c. ANALYSIS ACCORDING TO THE ALPHANUMERIC COMBINATION page BANK NOTES APPRAISED page METAL COINS page ANALYSES RELATING TO BANK NOTES REPORTS page 19 ACCORDING TO REPORTING ENTITY 7.a. BANKS page 20 7.b. POSTAL SERVICE page 21 7.c. VALUABLES CUSTODY AND TRANSPORTATION AGENCIES page 22 7.d. POLICE FORCES page CONCLUSIONS page 27

3 1. FOREWORD. In the framework of the Community system in place for the protection of Euro from counterfeiting, the Central Means of Payment Antifraud Office (UCAMP) acts as the Italian Central Office in charge of the gathering and exchange, between competent bodies, of technical 1 and statistical data 2 on any falsification detected on the national territory, in order to assess the impact of the phenomenon on the economic and financial system. UCAMP operates in close synergy with the Italian Central Monetary Counterfeit Office (UCIFM), placed within the framework of the Service for International Police Cooperation, at the Ministry of Interior, which discharges tasks pertaining to the centralization of all the information suitable to facilitate the development of the investigative activity. 1 Such data enable to identify counterfeit bank notes and coins through the technical description of the counterfeit typology. 2 Such data enable to carry out a strategic analysis of the phenomenon.

4 2. INTRODUCTION The UCAMP database, availing itself of an advanced technology for the reception and insertion of data in its information technology archive, gathers all the reports coming from the financial intermediaries 3 and the Police Forces 4 and acquires, by previous connection with the Counterfeit Monitoring System (CMS) operated by the European Central Bank, the results of the appraisals of bank notes and coins, by the Bank of Italy and the State Mint, Printing Works and Stationery Office respectively. In order to come to an ever more scrupulous and precise compliance with the rules of law and the administrative provisions that require the transmission to UCAMP of copies of the reports and forms filled in upon detection of alleged counterfeits, the training activity in favor of financial intermediaries (in particular bank and Poste S.p.A. officials) has been intensified. An action aimed at increasing the awareness that the protection of Euro from counterfeiting depends on the cooperation in synergy of all the players that, for various reasons, are called upon to be involved by the new countering device. 3 By virtue of a measure of the Bank of Italy Governor dated January 21 st (relating to bank notes) and of a decree of the Ministry of Economy and Finance dated March 1 st 2002 (relating to coins) promulgated in implementation of article 8 of law no. 409/ Police Forces, upon seizure of allegedly false bills and/or coins, transmit special forms in accordance with the formalities and deadlines laid down by a specific interministerial decree, promulgated in implementation of article 7 of law no. 409/

5 3. REPORTS RECEIVED. In 2004 a total of 65,632 suspected counterfeits reports have been filed, concerning 376,931 bank notes and 4,751 coins. The reports take on the form of withdrawal reports, when transmitted by the financial intermediaries, or forms, if sent by Police Forces. Maximum and minimum peaks (illustration 1) have been registered in November (6,294 reports) and December (4,177) respectively, while the average of the period is equal to 5, reports % of reports has come from Banks. Especially significant in relation to the past, has been the reporting activity of the Valuables Custody and Transportation Agencies (42.08% of total). The Post Offices have filed 12.65% of the reports (illustration 2). A review of the territorial origin of reports has confirmed the trend already emerged in the previous surveys, i.e. that the higher flow has mainly concerned the Northern regions (24,232 North-West and 15,490 North-East) and those of the Center (15,799) (illustration 3). Whereas, in the South and in the Islands, 6,014 and 3,888 cases of suspected falsity have been recorded respectively, while 209 reports come from the Republic of San Marino (Other section of the chart in illustration 3). 5

6 Illustration no.1 MONTHLY FLOW OF REPORTS JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Illustration no. 2 REPORTS RECEIVED Subdivision by Entity 0% 1% 44% 42% 0% 13% 0% 0% Police Forces Money Custody and transport Other fin. intermediaries Tax collection Postal Service Public Administrations Banks Bank of Italy 6

7 Illustration no. 3 REPORTS RECEIVED Subdivision by geographical area Other Center Islands North/East North/West South 7

8 3.a. TREND For a more thorough and comprehensive analysis of the phenomenon under examination, a comparison was made between the 2004 data and those pertaining to First of all, a slight drop (-2.22%) is seen in the number of suspect bank notes and coins reports, which has gone from 67,122 in 2003 to 65,632 in In 2003, the trend has been more fluctuating and has peaked in the month of March. As already pointed our in the preceding paragraph, in the course of 2004 the trend of reports has instead stabilized, basically remaining at the levels reached in From illustration 4 and table 1, it is possible to infer the trend and quantity of the monthly flow of reports filed as a whole in the time frame under examination. Illustration no. 4 REPORTS COMPARISON JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER MESE REPORTS 2004 REPORTS

9 Table no. 1 REPORTS COMPARISON REPORTS 2004 REPORTS 2003 JANUARY 5,235 6,742 FEBRUARY 4,663 5,265 MARCH 5,512 7,260 APRIL 5,137 6,001 MAY 5,152 4,485 JUNE 5,599 4,690 JULY 5,778 5,833 AUGUST 5,968 5,691 SEPTEMBER 6,210 6,063 OCTOBER 5,907 5,631 NOVEMBER 6,294 4,199 DECEMBER 4,177 5,262 65,632 67,122 9

10 4. BANK NOTES SEIZED AND WITHDRAWN. In the relevant time frame, against 65,341 reports concerning bank notes alone, a total of 376,931 pieces have been seized by the Police Forces and withdrawn from circulation. As shown by table 2, the greatest quantity of banknotes withdrawn as suspected of being counterfeit has concerned the 50 Euro denomination, which turns out to equal 82.43%. Gains position, compared to the past, the 10 Euro denomination (51,396 bank notes, equal to the 13.63%) From the chart comparing the trend of bank notes seized and withdrawn, and that of reports received (illustration 5) significant differentials emerge, determined by the fact that the reports of seizure received by UCAMP, from the Police Forces, each concern a considerable number of bank notes (illustration 6): hence, the number of bank notes seized is very high in correspondence with the periods when the info-investigative activity has led to particularly fruitful results. Even though the diffusion of the phenomenon can be seen throughout the national territory, table 2 and figure 7 show, however, that the greatest concentration of the withdrawal and seizure activity has been recorded in Southern regions (304,059 bank notes) followed by the Northern ones (46,049 bank notes) and Central ones (22,404 bank notes). Illustration no. 5 REPORTS - WITHDRAWN BANK NOTES COMPARISON JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER REPORTS 2004 BANK NOTES

11 Illustration no. 6 WITHDRAWN BANK NOTES Subdivision by Entity Bank of Italy Other fin. intermediaries Tax Collection Public Administrations Postal Service Custody and Transport of money Banks State Police 686 Guardia di Finanza Carabinieri Table no. 2 WITHDRAWN BANK NOTES SUBDIVIDED ACCORDING TO GEOGRAPHICAL AREA Total Other Center ,515 1, ,404 Islands , ,198 North/East ,581 14,552 1, ,521 North/West ,260 22,960 1, ,528 South 76 50,767 1, , ,059 Total ,396 7, ,716 4,529 1,593 1, ,931 11

12 Illustration no.7 GREATER CONCENTRATION OF WITHDRAWN BANK NOTES 12

13 4.a. TREND If, as seen above, between 2003 and 2004 there has been a slight drop of the reports of suspected counterfeits for bank notes and coins, with regard to bank notes the number of pieces withdrawn and seized has instead grown considerably, as emerges from table 3. The number of bank notes withdrawn from circulation (illustration 8) reaches high peaks in January, July and especially April, registering in the latter month the maximum value of the period under examination. The occurrence, in the months of January, April and July 2004, of a significant flow of withdrawn bank notes is to be put in relation with considerable service operations concluded in those times by the Police Forces on the territory. Illustration no BANK NOTES COMPARISON GENNAIO FEBBRAIO MARZO APRILE MAGGIO GIUGNO LUGLIO AGOSTO SETTEMBRE OTTOBRE NOVEMBRE DICEMBRE MONTH BANK NOTES 2004 BANK NOTES 2003 Table no. 3 BANK NOTES COMPARISON BANK NOTES 2004 BANK NOTES 2003 JANUARY 58,029 22,279 FEBRUARY 6,567 7,821 MARCH 7,878 8,229 APRIL 232,596 7,766 MAY 7,441 5,084 JUNE 6,160 5,956 JULY 26,256 6,630 AUGUST 6,577 7,085 SEPTEMBER 7,230 12,128 OCTOBER 6,243 24,989 NOVEMBER 7,530 5,853 DECEMBER 4,424 5, , ,467 13

14 4.b. MONTHLY ANALYSIS. Table 4 shows the aggregations, in terms of bank notes withdrawn from circulation and seized, according to reporting Entity and month (here is also possible to notice how the activity of the Police Forces has produced notable data in January, April and July). Table no. 4 BANK NOTES WITHDRAWN SUBDIVIDED BY ENTITY AND MONTH January February March April May June July August September October November December Carabinieri 1,944 1, , Guardia di Finanza 50, ,530 2,101 1, , State Police Banks 2,253 2,093 2,515 2,360 2,388 2,459 2,805 2,906 3,034 2,731 2,992 1,947 Custody and Transportation of 2,400 1,962 2,279 2,203 2,265 2,585 2,438 2,761 2,812 2,658 2,823 1,932 Money Postal Service , , , Public Administrations Tax Collection Other fin intermediaries 4 6 Bank of Italy ,029 6,567 7,878232,596 7,441 6,160 26,256 6,577 7,230 6,243 7,530 4,424 14

15 4.c. ANALYSIS ACCORDING TO THE ALPHANUMERIC COMBINATION. Contrary to the trend that emerged in the preceding statistical reports, in 2004 the majority of the bank notes withdrawn from circulation does not bear any longer as initial element of the alphanumeric combination the indication reserved for Italy by the European Central Bank (illustration 9). Illustration n.9 WITHDRAWN BANK NOTES Italy/Member States Ratio 51% ( ) 49% ( ) Italy Member States 15

16 The following table shows the detail of the bank notes bearing both the initial element of the alphanumeric combination assigned by the European Central Bank to the other Member States and other references. It needs however to be pointed out that the data do not necessarily indicate the Country in which the alleged counterfeiting has taken place. Belgium 1,094 U.K. (*) 72 Sweden (*) 190 Finland 615 Portugal 4,412 Austria 6,162 The Netherlands 7,259 Luxembourg 5,797 Ireland 7,879 France 7,979 Spain 36,039 Denmark (*) 478 Germany 14,083 Greece 836 Other (**) 98,611 (*) Use has been made of the alphabetic codes composing, along with other numerical characters, the serial number of the bank notes, assigned to the National Central banks of the Member States which have not yet joined the Euro currency area. (**) Use has been made of alphabetic codes, pertaining, again, to the serial numbers of the bank codes, never assigned to any of the National Central Banks of the Member States. 16

17 5. BANK NOTES APPRAISED. The bank notes seized and withdrawn from the national monetary circuit for suspected falseness are appraised by the competent National Analysis Center (CNA) at the Bank of Italy. The ones coming from large seizures in illegal printing works are appraised following the request of the competent Judicial Authority. After the consultation of the Counterfeit Monitoring System (CMS), the results are acquired by UCAMP, which thus proceeds to the definitive updating of the provisional data already present in its information system. The data linking activity has shown that in the course of 2004, the Analysis Center has appraised and established as false 106,975 5 bank notes. In terms of value, the amount of the bank notes identified, withdrawn and found to be false, in the period considered, equals 5,702,510 Euro (table 5). In particular, the 50 Euro denomination, which, as already seen above, recurs the most in the reports, also represents the one of greatest combined value among the bank notes found to be false, equal to 4,376,850 Euro (76.75% of the total). The values included in table n. 5 have been found to be close to the ones seen in 2003, considering the different extent of the bases on which the values in question have been calculated. Table no.5 NUMBER AND VALUE OF APPRAISED BANK NOTES DENOMINATION NO. PIECES VALUE , , , , ,537 4,376, , , , , , TOTALS 106,975 5,702, Survey carried out on January 10th,

18 6. METAL COINS. In the course of 2004, a total of 4,751 Euro coins have been withdrawn from the monetary circuit as suspected of being counterfeit. Of these, 3,035 have been sent to the State Mint, Printing Works and Stationery Office (CNAC). Having carried out their appraisal, 2,963 6 pieces have been established as being counterfeit (97.6% of the total). More in detail, the counterfeiting has concerned cent coins, Euro coins and 2,118 2 Euro coins (table 6). The considerable increase of counterfeiting concerning the 2 Euro coin reveals a trend reversal against what has emerged in the precedent statistical findings, that showed a greater preference, of criminal organizations, towards the 1 Euro minting. Table no. 6 - NUMBER AND VALUE OF APPRAISED COINS DENOMINATION NO. PIECES VALUE ,118 4, TOTALS 2,963 4, Survey carried out on January 10th,

19 7. ANALYSES RELATING TO BANK NOTES REPORTS ACCORDING TO REPORTING ENTITY. With a view to provide additional opportunities for reflection, the data set forth in the previous items have been the subject of a more in depth analysis carried out on the basis of their origin according to the reporting Entity. Hence, outlined below is the situation pertaining to the Banks, the Postal Service and the Agencies for the custody and transportation of valuables, as well as to each of the three Police Forces. 19

20 7.a. BANKS With regard to the banks, the chart in illustration 10 illustrates the comparison between the number of reports and the number of bank notes relating to each of them. Against 28,781 reports, 30,483 bank notes have been withdrawn from the monetary circuit. The analysis demonstrates that, on average, each report refers to bank notes. It appears evident how the tendency of the flow of reports received from banks follows the same trend of the general one, pertaining to the reports of all the financial intermediaries. Also in this case, the higher peak is in fact registered in November, with 2,992 reports, followed by a decrease in December minimum peak (1,947 reports) -, preceded by a stabilization of the values at an average of 2, reports. The reports originated by the banks correspond to 43.85% of the total of those sent by the reporting Entities as a whole, while the bank notes withdrawn equal 8.08% of the total. Illustration no. 10 REPORTS AND WITHDRAWN BANK NOTES COMPARISON (BANKS) SEGNALAZIONI BANCONOTE 20

21 7.b. POSTAL SERVICE. With regard to Poste S.p.A., an average of bank notes for each report is recorded. Against 8,308 reports, 10,811 bank notes have been withdrawn. The correlation between the number of bank notes withdrawn and that of the reports is presented in illustration no. 11. The contribution of the Postal Service as compared with the total of the reporting Entities is equal to 12.65% in terms of reports and to 2.86% in terms of bank notes. The average of reports in the course of the period has been equal to (reports), reaching the maximum peak in March (818 reports), after which it is has followed an irregular trend which started decreasing in April, reaching the minimum peak in December with 504 reports. Illustration no. 11 REPORTS AND WITHDRAWN BANKNOTES COMPARISON (POSTAL SERVICE) SEGNALAZIONI BANCONOTE 21

22 7.c. VALUABLES CUSTODY AND TRANSPORTATION AGENCIES. With regard to the Agencies for the Custody and Transportation of Valuables, an average of bank notes has been registered. The correlation between the two flows is shown in illustration 12. As a whole, against 27,621 reports, 29,118 bank notes have been withdrawn from the monetary circuit. The contribution of the Agencies for the custody and transportation of values as compared to the total of the reporting Entities is equal to 42.08% for the reports and to 7.72% for the bank notes withdrawn. The average of reports in the course of 2004 has been equal to 2, peaking in September (2,658 reports). Illustration no. 12 REPORTS AND WITHDRAWN BANK NOTES COMPARISON (V. C. AND T. AGENCIES) SEGNALAZIONI BANCONOTE 22

23 7.d. POLICE FORCES. The bank notes seized by the Police Forces went from 51,926 in 2003 to 306,382 in 2004, showing a 490% increase. What has been mentioned so far for financial intermediaries with respect to the relation between the reports filed and the bank notes withdrawn does not apply, obviously, to the Police Forces, considering that, as indicated by the charts in illustration 13 and illustration 14, this relation reveals greater differences in presence of service operations of particular importance. Examining the data pertaining to the Carabinieri, which has seized a total of 228,752 bank notes, the ratio between reports and number of notes seized as a whole is equal to an average of The flow of the currency seized follows a fluctuating trend, peaking in the month of January (1,944 bank notes) and April (224,283 bank notes) (illustration 15). As concerns the Corps of the Guardia di Finanza, which has withdrawn from the monetary circuit 76,944 bank notes, each report corresponds, on average, to bank notes. The flow of the paper money thus retrieved shows an uneven trend, peaking in the months of January and July, when, 50,609 and 20,253 bank notes, respectively, have been seized (illustration 16). The analysis of the data reported by the State Police has shown an average of bank notes for each report. Therefore, the flow of currency withdrawn is characterized by a six-month average of units and by a maximum peak of 325 bank notes, reached in the month of April (illustration 17). 23

24 Illustration no FLOW OF POLICE FORCES REPORTS 100 REPORTS NO MONTHS Carabinieri Guardia di Finanza State Police 24

25 Illustration no. 14 POLICE FORCES BANK NOTES FLOW BANK NOTES NO MONTHS Carabinieri Guardia di Finanza State Police Illustration no. 15 FLOW OF BANK NOTES MONTH Carabinieri 25

26 Illustration no. 16 FLOW OF BANK NOTES MESE Guardia di Finanza Illustration no. 17 FLOW OF BANK NOTES MESE State Police 26

27 8. CONCLUSIONS. In 2004, the number of reports of withdrawal from circulation of bank notes and coins by financial intermediaries and of seizure by Police Forces has registered a slight decline (-2.22%, compared to 2003). To this decline however corresponds a considerable increase of the bank notes removed from circulation. In particular, the ones seized by the Police Forces (4/5 of the total) register a 490% increase. In detail: Carabinieri have seized 228,752 bank notes, Guardia di Finanza 76,944, State Police 686. The bank notes forwarded to the Bank of Italy, appraised, and recognized as counterfeit, have amounted to 106,975, for an equivalent value of approximately 5.7 million Euros. In line with the observations made in 2003, this value falls within the physiological levels of the phenomenon and is entirely compatible with the quantities registered in other Community Countries, all the more so if compared with the total circulating mass, estimated for each Member State belonging to the Euro zone. It is however necessary to take into consideration that the bank notes found on the occasion of major seizures (illegal printing works) carried out by the police forces are appraised at the request of the Judicial Authority, therefore not all the bank notes removed from the circuit are immediately appraised; also, the results of the prevention and suppression activity reflect, in all probability, only partially the real extent and the actual trend of the Euro counterfeiting phenomenon. Also in 2004, the 50 Euro bank note is confirmed as a privileged target for counterfeiting attempts: this denomination represents the 82.43% of withdrawals and seizures for suspected falsity and the 76.75% of the total value of the bank notes that, following the appraisal, have been found to be counterfeit. With respect to withdrawals and seizures, advances, compared to the past, the 10 Euro denomination (13.63% of the total). As for the Euro coins, the data confirm, first of all that, by virtue of their greater nominal value as compared to the liras of old, also in 2004, delinquent organizations have had an interest to falsify. There has, however, also been a tendency to diversify production compared to 2003, focusing mainly on the 2 Euro minting. As concerns the number of bank notes seized by the Police Forces only, the current statistical report shows a geographic distribution quite different from the one observed in 2003, when the most significant diffusion had been recorded in Central Italy. A new territorial concentration is in fact observed in Southern Italy based, in particular, in Campania. 27

28 In the framework of the aggregate relating to financial intermediaries finds confirmation the tendency towards the increase of bank notes withdrawals by the Valuables Custody and Transportation Agencies: 7.72% of the total, a percentage close to the one seen for Banks (8.08%). The now consolidated experience of all the players in the field and the continuous and constant work to promote awareness of the sensitive topic promoted by this Administration point to the effectiveness of the countering device our Country has adopted on the basis of the criteria agreed and determined at Community level. From the data collected, moreover, it emerges that the financial intermediaries of our Country basically comply with the obligation to withdraw from circulation the bank notes and the coins suspected of being counterfeit. From the examinations of the appraisals carried out by the Bank of Italy, emerges the confirmation that the criminal organizations devoted to the illicit counterfeiting activity use with ever greater frequency reproduction techniques which require the use of sophisticated equipment, precisely with a view to reproducing forgeries as faithful to the originals as possible. Among the counterfeiting techniques employed, again stand out ink-jet and off-set printing; the latter system characterized by a greater danger, thanks to the better quality of the imitation and the potential high quantity of reproducible specimens. 28