KARACHI, July 12: The State Bank advised all banks on Thursday to install necessary equipment and machines for detection of fake currency. “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,” said a SBP circular carrying instructions for banks and Development Financial Institutions (DFIs).

Banks were advised to install by end December 2007 necessary equipment and machines for detection of fake currency at least at their main branches for their own use as well as for use by the general public free of cost.

They were also asked to educate their customers about the security features of currency notes and 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.

Banks were told to maintain a close liaison with the relevant law enforcement agencies to get to the source of crime and help apprehend the manufacturers, wholesalers and distributors of fake currency.

Banks should encourage the general public to hand over any counterfeit note — that has come into their possession — to the nearest bank branch or SBP Banking Services Corporation office and to report the incident of counterfeiting to the law enforcement agencies.

“All banks and DFIs are advised to ensure implementation of these measures on priority basis to play their role effectively in combating the counterfeiting of currency. SBP’s inspection teams and off-site Surveillance and Enforcement department will include specific modules to check compliance of banks and DFIs with these measures,” said the SBP circular.