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Counterfeit $50 notes circulating in Rarotonga, warns local banks

Thursday 19 September 2024 | Written by Losirene Lacanivalu | Published in Economy, Local, National

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Counterfeit $50 notes circulating in Rarotonga, warns local banks
Bank of Cook Islands (BCI) says they have been notified that counterfeit $50 notes may be in circulation. BCI/24091809

Businesses and the public are being warned to remain vigilant after counterfeit notes have been found circulating in Rarotonga.

The counterfeit $50 notes were discovered on Monday after being found in a couple of different businesses.

ANZ Bank Cook Islands country head Jason Murray said the bank was aware of some fake bank notes in circulation and businesses should take care when accepting cash.

“Fake currency poses a significant risk to businesses, and can result in substantial financial losses, as banks aren’t able to accept counterfeit notes,” Murray said in a statement to Cook Islands News.

“As a precautionary measure, we urge all customers to be vigilant when handling cash transactions and take the necessary precautions to safeguard their operations against counterfeit currency.”

ANZ encourages businesses to educate themselves and their staff on how to identify counterfeit currency and the steps to take if they encounter it, adds Murray.

This includes becoming more familiar with the security features of genuine notes, such as watermarks, holograms, threads and textures.

Murray said businesses who suspect they have received a counterfeit note should refrain from accepting it and report it to local law enforcement and the bank as soon as possible.

The newspaper has contacted Cook Islands Police for comments on whether they have received any complaints regarding the counterfeit notes in circulation locally.

Bank of Cook Islands (BCI) said that they have also been notified that counterfeit $50 notes may be in circulation.

In a statement released on its Facebook page yesterday afternoon, BCI said: “The counterfeit $50 notes are remarkably close to the genuine ones so please be attentive when handling any currencies given to you as a retailer or customer.”

Cook Islands Financial Intelligence Unit (CIFIU) whose mandate is to facilitate the prevention, detection, investigation and prosecution of money laundering, the financing of terrorism and other serious offences in the country, yesterday welcomed the banks’ proactive actions.

The banks are the first point of detection, it says.

From a regulatory perspective, FIU says it is important that the wider community is made aware instantly of these counterfeit notes recurring into the financial systems.

“We have an obligation to ensure transparency and vigilant measures to safeguard our financial environment and the wider community are protected from such risk and threats.

“We encourage businesses to carefully ensure the cash notes they receive have a genuine feel and look. If in doubt, contact their banks or contact FIU on 29182.”

In January this year, a domestic bank identified a counterfeit NZ$50, series 7 banknote that was accepted by an established food eatery which proved costly to their cash banking being reduced.

Cook Islands FIU then advised the tourism industry to be vigilant and use a “look, feel, and tilt” check when dealing with the $50 note.

Legitimate banknotes are made of polymer (plastic), featuring raised ink, unique serial numbers, holographs, colour changing birds, a large transparent window, and hidden microscopic writing.

According to BCI, here’s a list of features you can keep an eye out for:

1. Transparent Window: The transparent window on the counterfeit notes has been cut out and does not display the “50” watermark on a legitimate note shown below.

2. Note Alignment: The counterfeit note edges do not align              

3. Serial Numbers: All counterfeit notes identified so far have the serial number AG16334416. If you encounter any notes with this serial number, immediately flag them.

4. Paper Texture: The paper feels different from a genuine note, so pay attention to how the notes feel when handled.

5. Note Patterns: The counterfeit note patterns are not the same as genuine notes (circled orange)

6. Print Quality: The printing on the counterfeit notes is slightly unclear compared to legitimate notes shown below.

7. Series: The style of counterfeit is the most recent series 7 style notes

For more information on what features are on the series 7 $50 note, you can also check out the Reserve Bank of New Zealand’s website - https://www.rbnz.govt.nz/.../banknotes-in.../50-banknote