Bank of Tanzania (BoT) has asked commercial banks and other financial institutions to instal teller machines to detect security features of the new notes to help curb fake currencies in circulation.
Bank of Tanzania (BoT)
Director of Economic Research and Policy Joseph Massawe, speaking in an interview with the ‘Daily News’ in Dar es Salaam, blamed rampant forgery of bank notes in the country on technological advancement. The high value denomination notes – 10,000/- and 5,000/- –remain the most counterfeited.
Dr Massawe warned against individuals and institutions involved in the dirt deal, saying whoever caught in the illegal business of faking currency will be taken to task.
“There are cases of bank tellers colluding directly with dishonest clients in the malpractice whose effects are not only limited to the heavy losses that the bank incurs but also severe damage to the economy,” charged the director.
According to BoT’s Director of Bank Supervision Angapit Kobelo, it was in the interest of commercial banks and financial institutions to have the modern teller machines to help in detecting the fake notes and protect the businesses against losses.
The sources of the fake notes were yet to be revealed but there are speculations that the notes could be internally fabricated or fabricated beyond the country’s borders and then smuggled in.
Increased circulation of fake notes is linked to a syndicate between bankers and fake note manufacturers who use individuals to inject the fake money into formal channels of money circulation. The central bank has been urging people to report cases of fake money to the police to help the campaign to address the problem.
BoT says it remains committed to continue conducting public awareness campaigns to equip members of the public with skills to distinguish fake notes from the genuine legal tender.
Source Tanzania Daily News
