JEDDAH, 24 October 2007 — Police are investigating the origins of nine fake SR500 notes and a SR200 note, which recently surfaced at four local banks in Hafr Al-Baten. The notes are of the new fifth edition Saudi currency, which were released last month. These are the first reported cases of fake notes after the launch of the new Saudi bills at the beginning of Ramadan. Brig. Yusuf Al-Qahtani, spokesman for the Eastern Province Police, said a police station in Hafr Al-Baten was notified about the fake notes by the banks and the police’s Counterfeit and Fraud Division is investigation the origin of the notes.
“We have a total of SR4,700 worth of counterfeit money. There are nine SR500 bills and one SR200 note,” said Al-Qahtani, adding that the banks notified the police during the recent Eid Al-Fitr holidays. “The counterfeit notes were found among various bundles of notes deposited by a number of small businesses and individuals prior to the holiday,” said Al-Qahtani, adding that counterfeit notes are usually detected during holidays.
A source at the Saudi Arabian Monetary Agency (SAMA), who asked not to be named, said, “Whenever a new edition is released the chances 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.”
John Sfakianakis, chief economist at SAAB in Riyadh, said counterfeiting in recent years has not really 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 country’s currency rather than other nations such as those in the West who have become more reliant on the use of debit and credit cards to satisfy their daily financial needs,” he said. Sfakianakis said 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 added that 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 currencies and then become vigilant in working with authorities to counter fraud,” he said.
“It has become normal for us to see counterfeit currency immediately following the modernization and release of updated notes, like that which is currently under way with the release of the new 500 royal note last month,” said a bank official who spoke on condition of anonymity.
