As you are aware that the security features of our currency notes have been improvised recently and various other measures are also being taken to combat the counterfeiting of currency. However, the menace of counterfeiting like other crimes needs to be checked and confronted as an on-going challenge for financial institutions, central bank and the law enforcement agencies.

2. In order to curb the incidence of currency counterfeiting, banks / DFIs are advised to take the following measures:

i) Install, by end December 2007, necessary equipment / machines for detection of fake currency at least at their main branches for their own use as well as for the use of general public free of cost.

ii) Educate their customers about the security features of currency notes.

iii) Create awareness through the forum of Pakistan Banks Association about the legal provisions regarding penalty and punishment for counterfeiting to forewarn the counterfeiters as to the consequences of committing this crime.

iv) Maintain a close liaison with relevant law enforcement agencies to get to the source of crime and help apprehend the manufacturers, wholesalers and distributors of fake currency.

v) Encourage the general public to hand over any counterfeit note that has come to their possession to the nearest bank branch / SBP Banking Services Corporation office and to report the incident of counterfeiting to the Law Enforcement Agencies.

3. All banks / DFIs are advised to ensure implementation of the above measures on priority basis to play their role effectively in combating the counterfeiting of currency. Henceforth, SBP’s Inspection Teams and Off-site Surveillance & Enforcement Department will include specific modules to check compliance of banks/DFIs with the above measures.

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