Money Counterfeiting

Examination
Chapter VI
Fundamentals of Money Counterfeiting Examination
What is MONEY?
Money is any medium of exchange that is widely
accepted in payment for goods and services and settlement of
debts. Money also serves as a standard of value for measuring
the relative worth of different goods and services. The number
of units of money required to buy a commodity.
Definition of Terms
A. COUNTERFEITING – It is the crime of making, circulating,
or uttering false coins or banknotes. It means to make a copy of;
or imitate; to make a spurious semblance of, as money or
stamps, with the intent to deceive or defraud. Counterfeiting is
something made to imitate the real thing used for gain.
B. FALSIFICATION – The act/process of making the content/s
of a document, not the intended content.
C. FORGERY – The act of falsely making or materially altering,
with intent to defraud, any writing which if genuine, might be
of legal efficacy or the foundation of a legal liability.
Take note: In forgery, every person who, with intent to
defraud, signs the name of another person, or a fictitious
person, knowing that he has no authority to do so, or falsely
makes, alters, forges, or counterfeits any – checks, drag-due
bill for the payment of money or property – or counterfeits or
forges the seal forged, or counterfeited, with intent the same to
be fake, altered, forged or counterfeited, with intent to
prejudice, damage or defraud any person… is guilty of forgery.
 The Historical Development of Philippine
Peso
The Philippine Peso, commonly called piso (Filipino) or
peso (English and Spanish) is the currency of the Philippines. It
is subdivided into 100 sentimo (English and Spanish: centavos).
The ISO 4217 name is “Philippine peso” and the code is “Php”.
Although the name printed on the banknotes and coins changed
from “peso” to “piso” in 1967, the name peso continues to be
used locally in many contexts.
HISTORY OF PHILIPPINE BANKNOTES
 On May 1, 1852, the first commercial bank of the Philippines, El
Banco Español de Isabel issued the following denominations initially
10, 25, 50, and 200 pesos Fuertes, used until 1896.
During the First Philippine Republic, President Emilio Aguinaldo
ordered the issuing of 1, 2, 5, 10, 25, 50, and 100 peso banknotes
which shall be signed by Messengers: Pedro Paterno, Telesforo
Chuidan, and Mariano Limjap to avoid counterfeiting. They printed
and circulated to some areas only the 1 and 5 pesos banknotes due to
the shortage of the government.
By 1903, the American Insular Government issued Silver Certificates in the
denominations of 1, 2, 5, 10, 20, 50, 100, and 500 pesos backed by Silver
Coin or U.S. Gold at a fixed rate of 2:1.
In 1908, the El Banco Espanol Filipino was allowed to print banknotes in
the following denominations with text in Spanish: Cinco, Diez, Viente,
Cincuenta, Cien, and Dos Cientos Pesos.
In 1912, the bank changed to the Bank of the Philippine Islands (BPI) and
issued the same banknotes but in English.
In 1918, the Silver Certificates were replaced by the Treasury Certificates
issued by the United States Government in the following denominations:
One, Two, Five, ten, Twenty, fifty, One Hundred and Five Hundred Pesos.
In 1916, the Philippine National Bank (PNB) was created to administer the
state-holding shares and print banknotes without any quota from the
Philippine Assembly. They printed banknotes in 1, 2, 5, 10, 20, 50 and 100.
During World War I, the PNB issued emergency notes printed on cardboard
paper in the following denominations: 10, 20, 50 centavos, and 1 peso. Also
overprinted BPI notes in Five, Ten, and Twenty Pesos due to lack of currency.
During World War II, competing authorities issued banknotes for the
Philippines, under the auspices of the Japanese Military Administration and by
the President of the Philippines of the Commonwealth for emergency currency
to be issued by provincial currency boards. The emergency notes were deemed
legal tender and were pledged to be redeemable upon the end of the Japanese
Occupation.
Upon the restoration of the Commonwealth government, pre-war notes were
redeemed, and in 1949, a central monetary authority, the Central Bank of the
Philippines, was established. With the creation of the Central Bank, the
practice of multiple banks having the authority to issue banknotes ended.
The banknotes first issued by today’s Bangko Sentral ng Pilipinas were the
VICTORY-CBP overprints in 1949, which were merely overprints of older
America-era banknotes. The first official banknote series to be printed was
the English series in 1951, which was followed by the Filipino series in
1969.
After the declaration of Proclamation No. 1081 by Ferdinand Marcos on
September 23, 1972, the Central Bank demonetized the existing banknotes
in 1973. All the unissued Filipino series 100, 50, 20, 10, and 5 piso
banknotes were sent back to the De La Rue plant in London for
overprinting the watermark area with the words “ANG BAGONG
LIPUNAN” and oval geometric design.
On June 12, 1985, the Central
Bank issued the New Design
Series starting with a new 5-piso
banknote with the face of Emilio
Aguinaldo.
 In the following months, a new 10-piso banknote with the face of
Apolinario Mabini.

 In early 1986, a new 20-piso banknote appeared.

After the 1986 People Power Revolution and the new 1987 Constitution were promulgated, the
Central Bank issued a new 50-, 100- and for the second time a new 500-piso banknote with the face
of Benigno Aquino, Jr.
In 1991, the Central Bank issued for the first time a new 1000-piso banknote, containing
portraits of Jose Abad Santos, Josefa Llanes Escoda, and Vicente Lim.
After the passage of the New Central Bank Act of 1993, the New Design
Series, which was initiated in 1985, was slightly changed because of the new
seal of the Bangko Sentral ng Pilipinas.

In 2002, the Bangko Sentral issued a new 200-piso banknote with the security
features found on the upgraded 1000-, 500-, and 100-piso banknotes and has
the face of former President Diosdado Macapagal. His daughter, Gloria
Macapagal Arroyo, is at the back which showed her being sworn into office at
the EDSA Shrine.
In December 2010, BSP released the New Generation Currency
(NGC) Series. The full set of NGC coin series consisting of 1
sentimo, 5-sentimo, 25 sentimo, and the 1-piso, 5-piso and 10 piso
coins were released in March 2018.
THE PHILIPPINE PESO TODAY
Currently, banknotes of denominations of 20, 50, 100, 200, 500, and 1000
pesos are in circulation. All notes are of vibrant colors and have images of
famous Filipinos and events in Philippine history as well as the country’s
endemic flora and fauna and natural riches.
In February 2016, the BSP distributed a new 100 peso note, which came
with a better purple or purple hue.
On December 11, 2019, the BSP announced that the 20 peso note would
be converted into coin.
On March 26, 2018, coins of 1,5,10, and 25 cents and 1, 5, 10, and 20
pesos were in use. These coins are from the previous BSP coin series and
the newly released NGC coin series.
The BSP declared a redesign of the 5-peso coin of the NGC series. The
new design requires the inclusion of bumps on both sides of the coin.
 In April 2022, the
BSP began the
circulation of the new
and improved 1000-
Piso Polymer
Banknotes.
 Current Banknotes
 20 PISO
Obverse: President Manuel L. Quezon;
Filipino as National Language (1935);
Malacañan Palace; Seal of the Republic
of the Philippines; New BSP Seal
Reverse: Banaue Rice Terraces
(UNESCO World Heritage Site); Palm
Civet (Paradoxurus hermaphroditus
philippinesis), Weave design from the
Cordilleras
Security Features: (1) embossed prints,
(2) serial number, (3) security fibers, (4)
watermark, (5) see-through mark, (6)
concealed value, (7) security thread
 Current Banknotes
 50 PISO
Obverse: President Sergio Osmeña;
First National Assembly 1907; Leyte
Landing; Seal of the Republic of the
Philippines; and the New BSP Seal
Reverse: Taal Lake; Maliputo
(Caranx ignobilis); embroidery
design handcrafted in Batangas
Province
Security Features: (1) embossed
prints, (2) serial number, (3) security
fibers, (4) watermark, (5) see
through mark, (6) concealed value,
(7) security thread
 Current Banknotes
 100 PISO
Obverse: President Manuel A. Roxas;
Central Bank of the Philippines
(1949); Inauguration of the Third
Republic (4 July 1946); Seal of the
Republic of the Philippines; and the
New BSP Seal
Reverse: Mayon Volcano; Whale Shark
(Rhincodon Typus); Indigenous textile
from the Bicol Region
Security Features: (1) embossed
prints, (2) serial number, (3) security
fibers, (4) watermark, (5) see through
mark, (6) concealed value, (7) security
thread
 Current Banknotes
 200 PISO
Obverse: President Diosdado P.
Macapagal; EDSA People Power II
(January 2001); Independence House;
Barasoain Church; Seal of the Republic
of the Philippines; and the New BSP
Seal
Reverse: Bohol Chocolate Hills; Tarsier
(Tarsius syrichta); handcrafted design
from the Visayas in Central Philippines
Security Features: (1) embossed prints,
(2) serial number, (3) security fibers, (4)
watermark, (5) see through mark, (6)
concealed value, (7) security thread
 Current Banknotes
500 PISO
Obverse: Icons of Democracy – President
Corazon C. Aquino, Senator Benigno
Aquino Jr. ; EDSA People Power I
February 1986; Benigno S. Aquino, Jr.
Monument; Seal of President; New BSP
Seal
Reverse: Puerto Princesa Subterranean
River National Park (UNESCO World
Heritage Site); Blue-napped Parrot
(Tanygnathus lucionensis), woven cloth
from Southern Philippines
Security Features: (1) embossed prints, (2)
serial number, (3) security fibers, (4)
watermark, (5) see-through mark, (6)
concealed value, (7) security thread, (8)
optically variable device
 Current Banknotes
1000 PISO
Obverse: War Heroes – Josefa Llanes
Escoda, Vicente P. Lim, and Jose Abad
Santos; Centennial of Philippine
Independence (1989); Medal of Honor; Seal
of the Republic of the Philippines; and the
New BSP Seal
Reverse: Tubataha Reefs Natural Park
(UNESCO World Heritage Site); South Sea
Pearl (Pinctada maxima); Tinalak or Ikat-
dyed abaca woven in Mindanao in Southern
Philippines
Security Features: (1) embossed prints, (2)
serial number, (3) security fibers, (4)
watermark, (5) see-through mark, (6)
concealed value, (7) security thread, (8)
optically variable device/patch, (9) optically
variable ink
 Higher Denominations
• The Central Bank of the Philippines issued only 30,000 pieces of this
216mmx133mm 2,000 Philippine peso centennial commemorative legal
tender banknote. The obverse side features President Joseph Estrada taking
his oath of office on June 30, 1998, in the historic Barasoain Church, the
seat of the first democratic republic in Asia shown in the background as well
as the scroll of the Malolos Constitution and the seal BSP. The reverse side
depicts the re-enactment of the declaration of the Philippine Independence at
Aguinaldo Shrine in Kawit Cavite on June 12, 1998, by President Fidel V.
Ramos and also features the Philippine Centennial Commission logo. The
security features of the note include a 3-dimensional cylinder mold-made
portrait watermark of the two presidents and the years 1898-1998, an
iridescent band, color shift windowed security thread, a latent image, and a
perfect see-through register.
Higher Denominations
• The 100,000 centennial note,
measuring 8.5” x 14”, is
accredited by the Guinness
Book of World Records as the
world’s largest legal tender
note in terms of size it was
issued in very limited quantity
during the celebration of the
centennial of the Philippine
Independence in 1998.
 Parts of the Philippine Money
1. PAPER – Feel the paper – The genuine note is printed on a special kind of
paper which is smooth but a little bit rough when you run your fingers
through it. It does not glow under ultraviolet light. During paper manufacture,
the watermarks, security fiber, security threads, and iridescent bands are
included.
2. WATERMARK – Examine the watermarks on the unprinted portion of the
note - The watermark shows the shadow image of the portrait and the
banknote’s denomination on the blank space when viewed against the light
from either side of the note.
3. SECURITY FIBERS – Inspect the security fibers – Red and blue fibers
embedded in the banknote paper glow under ultraviolet light.
4. SECURITY THREADS – Special thread placed vertically on the paper
during manufacture. (1) Embedded Security Thread & (2) Windowed Security
Thread.
(1)EMBEDDED SECURITY THREAD – View the embedded security thread
– The embedded security thread is a special thread vertically implanted off the
center of the note during paper manufacture, 20 and 50.

(2)WINDOWED SECURITY THREAD – View the windowed security thread

on the improved version of 100’s, 500’s, and 1000 peso notes and the new 200
peso notes – The windowed security thread is a narrow security thread
vertically located like “stitches” at the face of the note with a clear text of the
numerical value in repeated sequence and changes in color from magenta to a
green or green to a magenta depending on the angle of view.
5. PORTRAIT – appears life-like. The eyes “sparkle”. Shading is formed by
the fine lines that give the portrait a characteristic facial expression which
is extremely difficult to replicate.
6. SERIAL NUMBERS – The serial numbers of the new Philippine peso
bills are composed of one or two prefix letters and six to seven digits in
asymmetric.
7. BACKGROUND / LACEWORK DESIGN – the background designs are
made of multicolored and well-defined lines. The lacework designs are
composed of web-crossing lines which are continuous and traceable even
at the intersection.
8. CONCEALED VALUE – When the banknote is rotated 45 degrees and
tilted downwards, a concealed denomination value can be seen super-
embossed on the smaller version of the portrait.
9. VALUE PANEL – Check the numerals found at the corners of the front
and back of the note. The numerals denote the denomination of the note.
10. VIGNETTE – The lines and dashes composing the vignette are fine,
distinct and sharp ; the varying color gives a vivid look to the picture that
makes it “stand out” of the paper.
11. COLOR – Recognize predominant color of each denomination:
1000 peso – Blue 50 peso – Red
500 peso – Yellow 20 peso – Orange
200 peso – Green 100 peso – Mauve
12. MICROPRINTING - Microprinting is the minute and finely printed
words “Banko Sentral ng Pilipinas” or “Central Bank of the Philippines”
located at the face or back of the note that is printed and readable.
13. ENHANCED VALUE PANEL – Has a rolling bar effect with color
shifting.
14. TACTILE MARK – a pair of short horizontal bands located at the
extreme right and left sides of the note.
15. OPTICALLY VARIABLE INK – Check the optically variable ink on the 1000-peso
denomination –It changes color from green to blue or blue to green when the note is held at
different angles.
16. SEE THROUGH MARK – The word Filipino written in the Philippine ancient
“Baybayin” alphabet can be seen in its complete form when the banknote is viewed against
the light.
17. OPTICALLY VARIABLE DEVICE PATCH – The 500 and 1000 peso bank notes now
have the optically variable device patch, reflective oil.
For the 500 pesos, the reflective coil bears the image of the small BSP logo and the Blue-
napped Parrot.
While the 1000 peso bill, the reflective coil carries the image of the small BSP logo and
the South-Sea Pearl.
18. FLUORESCENT PRINTING –The fluorescent print is the invisible numerical value
located off of the center of the face of the note that glows when exposed to ultraviolet light.
19. IRIDESCENT BAND – Look for the iridescent band on the improved portion of 100, 500,
and 1,000 peso notes and the new 200 peso notes - A wide glistening gold vertical stripe
with the numerical value printed in series.
MAKING OF PAPER MONEY
A. ENGRAVING
B. LETTERPRESS PRINTING
C. OFFSET PRINTING
BANK NOTE PAPER
Paper banknotes get a lot of handling. If a good grade of
paper is not used, it will soon wear out and have to be replaced.
The government buys the very best grade of paper they can get so
that the paper will last as long as possible. The special paper also
makes it difficult for the counterfeiter to duplicate. It is usually the
use of the wrong paper that causes the counterfeited banknote to
be detected by ultraviolet light.
Take Note: In most modern printing, papers have chemicals
added to make them look whiter. These chemicals cause brilliant
fluorescence under ultraviolet light. Bank notes paper does not
have this filler and does not show.
 Characteristics of Genuine and Counterfeit Paper
Note/Bill
GENUINE COUNTERFEIT
MAIN PRINT
Distinctive feel & embossed effect Generally smooth
1. The fingers will readily feel the main 1. The fingers will hardly feel the main
print on the front & back on fairly new prints of the front & back even on new
notes. notes.
2. This is brought about by offset print the
2. This is due to the measurable thickness of most common process employed by
the ink deposited on the paper which counterfeiters.
gives the prints and embossed effect. 3. The prints are mere stains on the coating
of the sensitized paper which is glossy.
PORTRAIT
1. Appears life-like. 1. It appears dead.
2. The eyes sparkle. 2. The eyes do not sparkle.
3. The tiny dots and lines (vignette) forming 3. It appears blurred, dull, smudgy, and
the details of the face, hair, etc. are clear, poorly printed.
sharp and well defined. 4. Hair is lifeless.
4. Each portrait stands out distinctly from 5. The face and/or forehead are often
the background. naturally white or pale due to the absence
of most of the details.
5. The background is composed of a
multicolored fine pattern of lines varying
tones and shades interlacing with each
other. These shading or toning are
intricately printed in such a way that the
contrast or shifting of colors creates the
impression of life & vividness to the notes.
WATERMARK
1. The watermark underneath the security 1. This is imitated by printing white ink or
lacework on the right hand side of the dry block on the finished paper.
note is the same on the colored portrait.
2. The design is placed using a dandy roll 2. Sometimes wax or other oily medium is
during the manufacture of the paper. stamped to give transparency to the
portion where the designing appears.
3. Sharp details of the outline or the light & 3. Printed outline is placed on the inner
shadow effect are discernible when sheet where merely a paper cutout is
viewed with the aid of transmitted light. placed inside.

4. The relief of the features can be felt by

running the finger on the design.
METALLIC THREAD
1. This is a special thread placed vertically 1. Counterfeit using printing on the back of
on the paper during manufacture. the note, on the inner side of the paper,
insertion of twin thread or simply folding
2. On the surface of the paper where this the note vertically where the thread
thread is located are patterns of short appears on the genuine bill.
vertical lines.

COLORED FIBERS OR SECURITY FIBERS

1. These fibers are scattered on the surface 1. On counterfeit, this is simulated by
of the paper at random & can be readily printed lines, cannot be picked off, but
picked off by means of any pointed can be easily erased with rubber or by
instrument. agitating with wet fingers.

2. The color of these fibers are red & blue.

LACEWORK DESIGN
The geometric pattern which looks
like a delicate lacework along the
border on both surfaces, embellishing
the portraits, value panels & vignettes
are multicolored & composed of sharp
lines, which are continuous and
traceable even at the joints.
On counterfeit, these geometric
patterns are often blurred, round on the
edges & blotch on the joints. Its
continuity could not be traced. The
color appears faded.
COLOR OF EACH DENOMINATION
Genuine notes have a polychrome background with one predominant
color for each denomination. You should know whose portrait is/are printed on
each bill.
Php 1,000.00 Blue President Manuel L. Quezon
Php 500.00 Yellow President Sergio Osmeña
Php 200.00 Green President Manuel A. Roxas
Php 100.00 Mauve President Diosdado P. Macapagal
Php 50.00 Red President Corazon C. Aquino, Senator
Benigno Aquino Jr.
Php 20.00 Orange Josefa Llanes Escoda, Vicente P. Lim, and
Jose Abad Santos
SERIAL NUMBERS
1. The prefix letter/s & numbers are clearly 1. On counterfeit, the letters & numbers are poorly
printed. printed. They are usually of different style.

2. They have peculiar style & are uniform in size 2. Most often, they are evenly spaced & poorly
& thickness. aligned.

3. Spacing of the numbers is uniform & alignment 3. The numbers are too big or too small, too thick
is even. or too thin & in certain cases shaded on the
curves.

VIGNETTE
1. The lines & dots composing the vignettes are 1. On counterfeit usually dull & poorly printed.
fine, distinct & sharp.
2. The varying color tone gives a bold look to 2. It appears dirty.
the picture that makes it stands out of the 3. The lines are comparatively thicker with
paper. rough edges.
4. There is no variation in color ton so that the
picture appears flat.
CLEARNESS OF PRINT
The registry of the different printed It is dirty due to the sputtering of ink on
features is perfect. The lines are very clear & the internal area. Over-inked areas are visible
sharp. instantly. The shading & ornamentations of
the letters & figures are thick & usually
merged.

EXAMINATION OF SUSPECTED COUNTERFEIT BANKNOTE

1. As well as inspection under UV light, the investigator should look at the banknote with
a hand lens.
2. He should pay particular attention to the quantity of the portrait in the banknote. This
is the one extremely fine detail of a good engraved plate.
3. The color of the ink should be compared with the color of a genuine banknote. It is
very difficult for counterfeiters to match the same shade of ink by a genuine
manufacturer.
• COINS
These are pieces of metal stamped by government authority, for
use as money or collectively referring to metal currency.

MAKING OF COINS
CASTING is the most common method of making gold coins.
Plaster molds bearing an image of gold coins are filled (at a low
temperature) with an alloy made of lead or tin. Some molds are used for
high-temperature metals such as copper or silver alloy.
STRIKING OR STAMPING is the making of an impression of
a coin or metal blank by pressure.
 Coins Characteristics
A. GENUINE coins show an even B. COUNTERFEIT coins feel
flow of metallic grains. The greasy & appear slimy. The
details of the profile, the seal of beading is composed of tiny
the Republic of the Philippines, round dots surrounding the
lettering & numerals are of high genuine coin appears with
relief so that they can be readily irregular & elongated depressions
felt distinctly by running their & is not as sharp & prominent as
fingers on the features. The in the genuine. The letterings &
beadings are regular & the numerals are low & worn out due
readings are deep & even. to the lack of sharpness of details.
The readings are uneven & show
signs of filing.
Legal Aspects of Forgery, Counterfeiting & Falsification
A. FORGERIES – What are the crimes called forgeries?
1. Counterfeiting the great seal of the Government of the Philippine Islands, forging
the signature or stamp of the Chief Executive. (Art. 161)
2. Counterfeiting coins (Art. 163)
3. Mutilation of coins (Art. 164)
4. Forging treasury banknotes or other documents payable to bearer (Art. 166)
5. Counterfeiting instruments not payable to bearer (Art. 167)
6. Falsification of legislative documents (Art. 170)
7. Falsification by a public officer, employee or notary, or ecclesiastical minister (Art.
171)
8. Falsification by private individuals (Art. 172)
9. Falsification of wireless, cable, telegraph, and telephone messages (Art. 173)
10. Falsification of medical certificates, certificates or merit or service (Art. 174)
B. ACTS PUNISHABLE UNDER ART. 161: Forging the great
seal of the Government of the Philippines; Forging the signature
of the President; Forging the stamp of the President.
C. What are the crimes under counterfeiting coins? They are:
Making and importing and uttering false coins (Art. 163);
Mutilation of coins-importation and utterance of mutilated coins
(Art. 164); and Selling of false or mutilated coins, without
connivance (Art. 165).
D. Reason for punishing forgery – Forgery of currency is
punished to maintain the integrity of the currency and thus
ensure the credit standing of the government and prevent the
imposition on the public and the government of worthless notes
or obligations.
E. ACTS OF FALSIFICATION (Art. 171 & 172)
1. Counterfeiting or imitating any handwriting, signature, or rubric;
2. Causing it to appear that persons have participated in any act or
proceeding when they did not so participate;
3. Attributing to persons who have participated in an act or proceeding
statements other than those made by them;
4. Making untruthful statements in a narration of facts; altering true dates;
5. Making any alteration or intercalation in a document that changes its
meaning;
6. Issuing in an authenticated form a document purporting to be a copy of an
original document when no such original exists, or including in such copy
a statement contrary to, or different from, that of the genuine original; or
7. Intercalating any instrument or note relative to the issuance thereof in a
protocol, registry, or official book.
Thank you for listening and
God bless us all!