What to do with mutilated cash, defective cash and counterfeit cash?

When you accept cash, it is always smart to check its quality. It is obvious nobody would accept money that is clearly counterfeit (for example, a colour copy or a clipping from a magazine). No one is obliged to accept a damaged banknote, either. If you notice anything unusual about a banknote or coin, we suggest you follow the procedures described below.

DAMAGED OR MUTILATED CASH

Such cash includes banknotes that have been damaged in circulation (burnt, gone through the laundry with clothes, soiled, torn or scribbled upon) and banknotes and coins that are so worn-out that it is impossible to establish their authenticity. Damaged or mutilated cash is removed from circulation.

What should be done with damaged or mutilated cash?
If you have damaged or mutilated kroon or euro cash, take it to a commercial bank and it will be replaced. However, more than half of the banknote must be preserved and in case of Estonian kroons, also the serial number must be fully legible. As to coins, at least the denomination and year of mintage must be identifiable. If these conditions are not met, banks have no obligation to accept the damaged banknote or coin.

DEFECTIVE MONEY

Banknotes that do not comply with the requirements set to them are considered defective. Such banknotes may have a security feature absent or in excess, non-standard measurements, dispersed printing ink, etc. In principle, defective cash is mutilated money which has been spoilt by the producer.

Eesti Pank does not print banknotes itself, it is done by a special print shop, where the quality of banknotes is checked several times. Like all central banks, Eesti Pank performs a random check of new banknotes before releasing them into circulation. However, it may happen that some defective notes are nevertheless released. Although defective cash is legal tender, banknotes with production defects must be withdrawn from circulation and they are considered mutilated money.

What should be done with a defective banknote?
Defective banknotes are replaced by commercial banks. If you are not sure whether you are in possession of defective or counterfeit cash, you should proceed from the law establishing the respective procedures.

COUNTERFEIT CASH

Counterfeiting is forging money or altering genuine money by an unauthorised person in a non-prescribed manner and with the intention of passing it as genuine cash. Counterfeiting also includes the production of money at a prescribed place and in a prescribed manner without the permission of an authorised issuer.

Counterfeiting and deliberate usage of counterfeit money is illegal. According to the Penal Code, a person convicted of counterfeiting or using counterfeit currency may be punished by a fine or imprisonment up to ten years.

What should be done if you suspect you are in possession of counterfeit cash?
If you think a banknote or coin you have may be counterfeit, turn to the police. A person who was not aware he had been using counterfeit money will not be punished. However, the necessary procedural acts may take some time.

Once you suspect you have found a counterfeit banknote or a coin, notifying the police is unavoidable. If you turn to a professional money handler (e.g., a bank, foreign exchange bureau) to replace or check suspicious cash, they are obliged to notify the police. The authenticity of the money will be established by expertise performed by the Forensic Service Centre of the Estonian Police.

SPECIMEN BANKNOTES

A specimen banknote is not legal tender. It is the technological standard for banknotes. Specimens are used as reference material to assess the circulation usability of banknotes and to identify banknotes in case of need.