Fake money not major challenge to economy – BNR

Fake money was never considered a major problem in the past, but lately, its circulation locally is increasing at a faster rate, which is worrying the business community.However, experts say the amount of counterfeit money in circulation is low to cause sleepless nights. Besides, they argue, the Rwandan franc bank notes have forge-proof security features. Also, financial institutions have installed hitech equipment to easily detect fake monies.“We have mechanisms to ensure that counterfeit money is detected and isolated. We also have professional tellers, who cannot be compromised considering that the repercussions are dire when caught,” James Gatera, the Bank of Kigali chief executive officer, told Business Times.This paper had learnt of a case, where a bank teller was recently reported to have given a client fake currency. However, experts in the banking sector say this was an isolated case.“It is possible for such a thing to happen, but I am sure that banks in the country would do anything to curb the vice; even if it means stopping tellers from entering their counters with personal money,” Gatera says.John Rwangombwa, the central bank governor, echoes Gatera’s sentiments. He says he would be surprised if the issue of counterfeit money made headlines in Rwanda since “it is not one of the top challenges to the economy”.“There is counterfeit money circulating, but not at an alarming rate. The Police have done a great job in containing the problem. Besides, the central bank ensured that the Rwandan franc has a number of security features that make it easy for the public to identify fake notes from real ones,” Rwangombwa notes.However, statistics from the Police give a contrasting picture, showing that transactions involving counterfeit currencies reported to Police increased from 142 in 2010 to 148 in 2012. Some people believe that many other incidents involving fake money are never reported. Forty-three people involved in the illegal activity were also arrested last year, most of whom are Rwandans.Although the shady business initially involved dollars and franc notes of 2,000 and 5,000, other fake currencies, such as the euros, have lately been in circulation on the market, raising concerns.Peter Kagame, the operations manager of ETA Forex Services, a local currency trading company, says they get fake notes, especially dollars, once in a while. He says once caught, most culprits claim they did not know the notes were counterfeits.“People who deal in fake money business do not come to forex bureaus because they know we will identify and confiscate it as we have improved our technology. So, they go to busy markets or shops, where it is easy for them to circulate it. We fell victim to counterfeiters in the past, but not any more,” Kagame notes.The national Police operate a financial investigation unit at the central bank, which handles fraudulent activities, involving money laundering and counterfeiting.“We work with the central bank and forex bureaus to investigate money counterfeiting and also monitor suspicious individuals closely,” Eric Kayiranga, the director of criminal investigation department, says.Recently, two Ugandans were detained in Kigali after they were found with counterfeit US dollars amounting to $26,000 (about Rwf16.5m). According to Article 601 of the Penal Code, any person who fraudulently counterfeits, falsifies or alters coins or notes which are legal tender in Rwanda or abroad, will serve five to seven years in prison.Also, any person who, knowingly, acquires or receives counterfeit coins or notes and circulates them, even if they are not the counterfeiters or importers of such monies, shall be liable to a term of imprisonment of one to three years.