When you accept money, it is always smart to check its quality. It is obvious nobody would accept money that is clearly counterfeit (for example, a colour copy or a clipping from a magazine). No one is obliged to accept a damaged banknote, either. If you notice anything unusual about a banknote or coin, we suggest you follow the procedures described below.

A banknote is considered mutilated if it is worn out or damaged in the course of circulation (e.g., money is burnt, gone through the laundry with clothes, soiled, torn or scribbled upon). Mutilated money will be withdrawn from circulation according to the procedure prescribed by law.

What to do with a mutilated banknote?
If you are in possession of mutilated money, turn to a commercial bank, i.e., any bank office, to exchange the mutilated banknote for a fit one. According to Section 6 of the Currency Law of the Republic of Estonia, damaged and mutilated banknotes and coins of the Republic of Estonia will be received and replaced by ALL commercial banks, provided that at least a half of the banknote is preserved and the serial number is fully legible; on a coin, at least the denomination and time of minting must be legible. If these conditions are not met, banks are not obliged to redeem the damaged banknote or coin.

Banknotes that do not comply with the requirements set to them are considered defective. Such banknotes may, for example, have a security feature absent or in excess, non-standard measurements, dispersed printing ink, etc. Such banknotes are, in principle, mutilated money spoilt by the producer.

Eesti Pank does not print banknotes or mint coins itself but buys the services. The quality of banknotes is checked several times at the security printing house. Like all central banks, Eesti Pank performs a random check of the new banknotes before putting them into circulation. However, sometimes it happens that some defective notes are released. The defective banknotes launched into circulation by Eesti Pank are legal tender. All the same, banknotes with production defects must be withdrawn from circulation and they are treated as mutilated money.

What to do with a defective banknote?
Defective banknotes are redeemed at commercial banks. If you are not sure whether you are in possession of a defective or counterfeit money, you should proceed from the law providing the respective procedures.

Counterfeiting means forging money or altering genuine money by an unauthorised person in an non-prescribed manner and with the intention of passing it as genuine currency. Counterfeiting also includes the production of money at a prescribed place and in a prescribed manner without the permission of an authorised issuer. Eesti Pank has the exclusive right to issue currency in the Republic of Estonia, which means Estonian currency is counterfeit if issued by anyone else.

Counterfeiting and deliberate usage of counterfeit money is illegal. According to the Penal Code, a person convicted of counterfeiting or using counterfeit currency may be punished by a fine or imprisonment up to ten years.

What to do if you suspect you are in possession of counterfeit money?
If you think a banknote you have got may be counterfeit, turn to the police. A person who was not aware he had been using counterfeit money will not be punished. However, the necessary procedural acts may take some time.

Once you suspect you have found a counterfeit banknote, notifying the police is unavoidable. If you turn to a professional money handler (e.g., a bank, currency exchange bureau, etc.) to redeem or a suspicious banknote, they are obliged to notify the police authorities. The authenticity of the money will be established by expertise performed by the Forensic Service Centre of the Estonian Police.

What to do with mutilated money, defective money and counterfeit money?