THE CENTRAL BANK documented more fake money last year as the economy reopened, which allowed for an increase in cash transactions.

“With renewed economic activities following the vaccination program and more relaxed community quarantine guidelines, the number of documented counterfeit banknotes rose by 7% from a year-ago,” the Bangko Sentral ng Pilipinas (BSP) said in its annual report.

The majority of these were retrieved from the country’s centers of economic activity.

Findings from the central bank showed more than half (55%) of the counterfeit notes were documented in Metro Manila, followed by CALABARZON (14.3%), Central Visayas (8.6%), and Central Luzon (5.6). These areas accounted for 83.5% of the volume of documented counterfeit bank notes in 2021.

In terms of parts per million (PPM), the volumes of counterfeit banknotes and coins in circulation in 2021 were at 7.9 PPM and 0.2 PPM, respectively.

Amid the rise in counterfeit money, the BSP noted the improved capacity of banks’ cash handlers to detect fake bills and coins.

Correctly classified counterfeit bank notes surrendered to the BSP for investigation rose 14.8%, while number of undetected counterfeit banknotes in banks’ deposits with the central bank dropped by 21.3%.

Throughout the year, the BSP conducted 11 law enforcement operations that resulted in the arrest of 19 individuals and the filing of 15 criminal charges.

“By the end of 2021, the BSP was able to secure a 100% conviction rate, with the conclusion of the three counterfeiting cases and conviction of the accused in criminal cases for counterfeiting or possession, or both, of counterfeit currencies,” it said.

Through the operations, the BSP confiscated 813 pieces of counterfeit New Generation Currency banknotes, 144 counterfeit dollars, other foreign currencies, firearms and ammunitions, and other counterfeiting- related items.

“As the country forges toward rebuilding the economy, the BSP shall continue its work of paving inclusive pathways to smoothly transition the national payment system from cash-heavy to cash-lite,” the central bank said.

BSP Governor Benjamin E. Diokno has said they are proposing stiffer penalties such as longer imprisonment for those involved in faking banknotes.

Central bank officials have said Filipinos remain heavily reliant on cash despite the rise in cashless transactions during the pandemic. By 2023, the BSP wants 50% of all payments done digitally. — L.W.T. Noble

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