EVEN though the number of counterfeit banknotes in circulation is low compared to other countries, the Bank of Namibia (BoN) remains concerned over the increased incidence of fake money and has launched another currency awareness campaign.

Stressing that the campaign "should not be construed as a pressing response to a serious problem", BoN Deputy Governor Paul Hartmann said for every million Namibia dollar banknotes in circulation outside the BoN last year, there were 4,6 counterfeits.

In comparison, the Bank of England recorded a counterfeit rate of 274 notes per million in 2008, Hartmann said.

Counterfeiting of banknotes has become a problem in many, if not all, countries around the world and Namibia is no exception, he said.

"The continued availability and increased accessibility of new and sophisticated technologies in the form of high-quality colour copiers and scanners have enabled criminals to produce counterfeit banknotes."

The BoN attaches great importance to the fight against counterfeit money and pursues what might be termed a "multi-dimensional" strategy based on different methods. Equally, the bank considers counterfeit prevention as an ongoing requirement for any central bank and law enforcement agency, Hartmann said.

Currency counterfeiting, if not prevented and dealt with accordingly, can pose a significant risk to the economy and can lead to loss of public confidence in the dependability of the Namibia dollar currency. The confidence placed in a currency is ultimately dependent on its stability and security.

Possession and the use of counterfeit money is a global crime punishable by law. In Namibia, it is an offence under section 25 of Bank of Namibia Act, Act 15 of 1997 to be knowingly in possession and/or use of counterfeit Namibian currency.

This section provides that a person convicted of counterfeiting or in possession of counterfeit Namibian currency shall be liable to a fine not exceeding N$100 000 or imprisonment for a period not exceeding seven years, or to both such fine and imprisonment. The Prevention of Counterfeiting of Currency Act, 16 of 1965 also makes it a punishable offence for counterfeiting or to be in possession of counterfeit non-Namibian currency.

The BoN, together with the Namibian Police has over the years been apprehending counterfeit notes from members of the public, Hartmann said.

Over the next weeks, the awareness campaign team will roll out the project at Katima Mulilo and Rundu (today), and Keetmanshoop and Walvis Bay (October 29 and October 31). The project has already been rolled out at Gobabis, Oshakati and Oshikango.