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Kinyarwanda
Counterfeit currency is a challenge that can slowly hurt an economy of any country, if not dealt with at an early stage.
Experts say fake or counterfeit money increases prices (inflation) due to more money getting circulated in the economy – an unauthorised artificial increase in the money supply; leads to decrease in the acceptability of paper money and cause losses to the business community.
In Rwanda, this form of economic crime is not practiced on a large scale, although Rwanda National Police (RNP) maintains its strategy is to bring down even the few cases that exist and those involved face justice.
Statistics from the Criminal Investigation Department at RNP indicate that between January and April last year, there were 65 cases of counterfeit money handled and investigated by police, involving counterfeits worth Rwf1.6 million and US$700.
Between January and April this year, 111 cases of counterfeit money were registered involving total amount of counterfeits of Rwf 5.2 million and US$36,000.
Most cases were reported in Kigali and at border posts, especially in the western province, the report further indicated.
A case in point happened early this month in Bugesera District where two men were arrested with counterfeit notes worth over Rwf1 million they were apparently trying to exchange for genuine money.
Financial experts argue that overcoming counterfeit money in any given economy goes beyond only acquiring technology that examines money, but also building strong ties between law enforcers and the business community in order to collectively fight against the challenge.
“Criminals who spread counterfeit currency are not afraid of their money being detected. What they are scared of is being arrested. Therefore, coordination between police and residents is very important. Reporting a counterfeit case as soon as it occurs is the key to fighting it,” Ernest Shema, a financial expert and holder of Masters in Accounting said in an interview.
Another important aspect, according to Shema, is through education and sensitization campaigns aimed at engaging the masses and helping them understand the dangers associated with money counterfeit flows.
“Some people do not even know that this challenge exists, yet they own shops and small businesses, which makes them very vulnerable targets by criminals who spread counterfeits. Police has been at the helm of conducting education seminars, but more organizations need to come on board, both from the government and private sector to let people know about the reality of this challenge,” he said.
If collectively checked, he believes, Rwandans will together overcome the negative elements that come with counterfeits in the economy, which include; reduction in the value of real money, inflation due to unauthorised increase in money supply, decrease in acceptability of money and loss of trust in economy institutions.
On the supply side, money counterfeiters choose to exploit the nature of the market and target vulnerable victims who either do not have money detection mechanisms, or are too busy to examine the money they receive in payment for goods and services.
RNP has in the past worked with Rwandan residents through community policing, which has led to the arrest of criminals.
Another expert, Maurice Toriotich, the Managing Director of Kenya Commercial Bank, explained that money counterfeiting is a criminal offence and all stakeholders must come on board to ensure that this crime does not infiltrate the banking sector.
“Counterfeit currency distorts the monetary system and has the long term implications on the economy. One way of encouraging reduction of counterfeits is moving towards a cashless economy. People should use more electronic money and avoid carrying cash. The more cash you carry the more difficult it is to see fake money,” he said.
“More importantly, those who support counterfeiters directly or indirectly should also be punished. The sanctity of the Rwandan franc should not be put into doubt due to fake money. The loss of confidence takes away the moral standing of the business to transact genuine business in the country.”
Police Spokesperson, Chief Superintendent. Celestin Twahirwa, said that RNP maintains that such partnerships, particularly with financial institutions such as banks, Forex Bureaus and Mobile Telecommunication companies, as well as trader, will ensure that timely information is provided and immediate action is taken whenever there is an issue of counterfeiting.
“The criminals behind money counterfeiting use very many schemes in order to succeed. Of late, they have been targeting mobile money agents by offering counterfeits and asking them to deposit it on their accounts. In such situations, the agents lose a lot of money because they deal in real cash yet are offered fake money,” he said.
“It is important to be vigilant at all times while dealing with money and look out against any suspicious individual or a group of people. Providing timely reports after spotting suspects is paramount in ensuring that quick response from Police is provided to apprehend such people.”
He explained that RNP has employed a number of measures including establishing a unit charged with dealing with financial related crimes, working with the business community and financial institutions to detect offenders.
"Installing CCTV cameras helps to identify criminals, but again, people have to guard their banking tools like ATM cards and their PIN, cheque books to prevent cases that might arise out of their recklessness."
Articles 601 to 604 of the Rwandan penal code criminalize and punish those who falsify or alter coins and bills which are legal tender. The articles also punish those, who knowingly circulates fake monies and those who acquires fake currencies unknowingly, but circulates them after discovering they are counterfeit.
Penal Code article 604 stipulates that any person who counterfeits or circulates forged currency is liable to a term of imprisonment between five and seven years and a fine between two times and ten times the value of the counterfeits.
