Not just one, now racketeers have 5 types of counterfeit notes

Typically, counterfeit notes meant a fake note. But using modern technology, criminal gangs are no longer just printing fake notes; they are also altering parts of genuine notes. In addition, they are using chemicals to change the denomination of notes. They are also employing tactics such as joining two notes together to create a new one.

To combat such crimes, the Financial Institutions Division has drafted a new law titled the "Counterfeit Currency Prevention Act 2026." For the first time, it defines five types of suspicious and tampered banknotes with separate legal definitions. The law will be issued soon after seeking opinions, according to sources.

The draft proposes that offenses related to counterfeit notes be made cognizable, non-compoundable, and non-bailable. Additionally, stringent punishments have been proposed for the creation, storage, transportation, marketing, or use of counterfeit notes.

The draft law also states that if a bank, financial institution, money exchange, or designated official finds any suspicious note, they cannot return it to the customer. The note must be seized and sent to Bangladesh Bank for examination following the prescribed procedure. Furthermore, the certification provided by an examiner authorized by Bangladesh Bank will be admissible as evidence in court. Those concerned believe this will make the investigation and trial of counterfeit note cases more effective.

Additionally, once the law is enacted, the provisions currently scattered across various laws and directives regarding counterfeit note suppression will be brought under one umbrella. At the same time, the responsibilities of banks, financial institutions, money exchanges, and law enforcement agencies will be clarified.

Meanwhile, the types of counterfeit notes include Forged, Tempered, Bleached, Mismatched, and Suspicious banknotes. The new law has separate provisions for identifying, seizing, examining, and trying each type of note.

A major change in the draft law is that it provides separate definitions not only for counterfeit notes but also for various types of altered notes. According to the draft:

Forged Note: A note that is entirely counterfeit, created in imitation of a genuine note and used with fraudulent intent.

Tempered Note: A genuine note that has been intentionally altered, cut, torn, or distorted in any part to give it a new appearance.

Bleached Note: A note where the print or denomination of a genuine note has been erased using chemicals and transformed into a different denomination or identity.

Mismatched Note: A new note created by cutting and joining parts of two or more different notes.

Suspicious Note: A note whose authenticity cannot be immediately confirmed and requires examination will be treated as a suspicious note.

It is known that in recent operations by law enforcement agencies last year, recovered counterfeit notes---if genuine, those notes could have worth over Tk 8.6 million--- in various drives. However, no consolidated official government statistics on the total counterfeit notes recovered throughout the year have been published yet. In this regard, the existing laws are proving to be quite weak in tackling the problem. Taking this into consideration, the government is formulating the new Counterfeit Currency Prevention Act.

Meanwhile, although there have been isolated provisions for preventing counterfeit notes in the country, there was no separate legal framework to combat chemically bleached or tempered notes made with modern technology. The new law attempts to increase trust in cash transactions by establishing international-standard note identification, legal recognition of Bangladesh Bank's forensic examination, and defining banks' obligations. According to experts, once the law is enacted, it will not only be easier to take action against counterfeit currency rings, but it will also create opportunities for faster disposal of cases in court.