Seán Sherlock (Cork East, Labour)
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Question 117: To ask the Minister for Finance the way he proposes to implement the European banknote recycling framework; and if this will give rise to the necessity for transposing legislation. [19466/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Banknote Recycling Framework (BRF) was adopted by the ECB in 2005, with a deadline of end 2007 for full implementation. It laid down a standard for the authenticity and quality of banknotes to be issued to the public and rules for the sorting of banknotes to be issued via ATMs and over the counter by credit institutions and professional cash handlers. Ireland and several other Eurozone countries applied for and were granted an extension of the implementation deadline until end 2010.

The Central Bank of Ireland has been working with the commercial banks and with other professional cash handlers since 2006 to implement the BRF by the deadline of end 2010. The BRF did not require transposing legislation in Ireland and is being implemented by means of formal written agreements between the Central Bank, the commercial banks and other stakeholders including Credit Unions, an Post, Bureaux de Change and Cash in Transit Companies.

EU legislative provisions requiring credit institutions and other professional cask handlers to authenticate euro banknotes which they put into circulation are contained in Council Regulation (EC) No. 44/2009.

EU Member States are obliged to transpose this Regulation into domestic law by 31 December 2011. In Ireland, this will require the amendment of Section 39 of the Criminal Justice (Theft and Fraud Offences) Act 2001 which imposes certain requirements on credit institutions in respect of the detection of counterfeit notes and coins.