RIYADH, 7 January 2008 — A leading bank in Riyadh yesterday detected a counterfeit SR500 bill in a bundle of cash deposited by one of the foreign schools in the city yesterday. On detecting the fake note, the bank detained the school’s accountant, who had come to deposit the cash, which consisted of fees collected by the school in the previous week.
The bank released the accountant on representations made by the school authorities. However, the identification details of the depositor and a letter of explanation from the school were taken by the bank for further investigation.
According to Saudi Arabian Monetary Agency (SAMA) regulations, in the event of receiving a fake note, Saudi banks have to immediately notify the police who, in turn, will investigate its source.
The school’s principal told Arab News that SR19,036 in tuition was collected from parents during the week. “We do not have a machine to detect fake notes like banks do,” the principal said, adding that the fake note might have been given by a parent “with or without knowing it”.
A senior banker told Arab News that people should be vigilant when receiving new notes and should check whether they are genuine. “Most of the supermarkets in the Kingdom do have their own systems to detect counterfeit notes. Schools also must follow suit,” he added.
SAMA, the Saudi central bank, issued new SR500 bills in September last year. Detailing the security features in the new note, SAMA said that there is a windowed security thread and a watermark at the back of the note. Another notable feature is that a portrait of King Abdul Aziz appears when the note is exposed to light. It also includes some recognition features for the visually impaired.
A source at SAMA said, “Whenever a new edition of a currency is issued the chance of counterfeit bills appearing is very high, not because of its security features but because most people cannot differentiate between the original and the fake.”
In October last year, nine fake SR500 bills and a SR200 bill surfaced at four local banks in Hafr Al-Batin. All of them were counterfeits of bills issued in the September edition.
A senior economist at a commercial bank in the city said counterfeit currency had not been a significant problem for Saudi Arabia. “I think it is due in part to the fact that the Kingdom is a more cash-oriented country with the average consumer being more familiar with the look and feel of the currency than those in the West who rely on debit and credit cards to meet their daily financial needs,” he said.
The economist added that counterfeit notes could have an adverse effect on the economy. However, it would take a large amount of fake notes to completely destabilize transactions.
He said the best method of protection against being a victim of counterfeiting is to become aware. “I would advise the common consumer, as well as retailers and wholesalers, to become more familiar with the security features of the local currency and then become vigilant in working with authorities to counter fraud,” he said.
