Bank Negara launches measures to combat currency crime

KUALA LUMPUR: Bank Negara Malaysia (BNM) has introduced a two-pronged strategy for the banking industry and general public, namely ink-staining technology for automated teller machines (ATMs) and the "My Ringgit" mobile app, an interactive guide to the security features of the current series of Malaysian banknotes.
BNM said the two measures, implemented in collaboration with the Association of Banks in Malaysia (ABM) and the Royal Malaysian Police (PDRM), are part of its initiatives to fight currency crime.
BNM deputy governor Datuk Muhammad Ibrahim said at the launch yesterday, the "My Ringgit" app also includes general advice, quality standards and other related information about the Malaysian currency.
"The app does not verify the authenticity of a ringgit note, but rather is meant for exploration and educational purposes only," he said, noting Malaysia's counterfeit rate is 2 per million pieces compared to development economies which range between 48 to 100 pieces to a million.
"This application enables the general public to learn about the most practical and easiest techniques to authenticate our currencies and learn in greater detail the security features found in our currency notes," he added.
Meanwhile, he said the ink staining technology, developed by French company Oberthur Cash Protection, contains indelible ink that would smear currency notes on the corners when there is an attempt to tamper with protected ATMs.
He said the stained banknotes would lose their legal tender and thus, cannot be brought back into circulation, and instead must be returned to the central bank for replacement.
"This ink is indelible and can be traceable to a particular financial institution that dispensed the currency notes, thus it can assist the police more effectively in their course of investigation," Muhammad Ibrahim added.
ABM Chairman Datuk Abdul Farid Alias, who was also present at the launch advised the public not to accept the dye-stained banknotes as they may have been stolen from an ATM.
He said one who receives such notes should refer to the Central Bank and make a police report immediately.
Abdul Farid also noted that the dye-stained banknotes can be detected and rejected by the cash deposit machines, whereby all financial institutions have been instructed not to accept such banknotes.
Meanwhile, Oberthur Cash Protection sales and operations director, Eric Hauw said Malaysia is the first country in Southeast Asia that uses the ink staining technology, in which its local clients include Malayan Banking Bhd, Public Bank Bhd and RHB Bank Bhd.
"The technology was developed in the last decade and had been rolled out in 25 to 30 countries in Western Europe, Latin America and Africa," said Hauw, who noted the cost to install the system was about 30% additional expenditure per ATM.
The company, which is based in Kuala Lumpur, designs and manufactures intelligent cash protection systems and security solutions for cash-in-transit, ATM and retail markets, with about 60,000 intelligent systems being deployed throughout the world.