Hong Kong recalls three million bank notes in counterfeit scare

dpa German Press Agency Published: Tuesday March 27, 2007

Hong Kong- Three million of Hong Kong's highest
denomination bank notes have been recalled after the discovery of
hundreds of counterfeit notes, officials announced Tuesday.
More than 1,500 fake bills for 1,000 Hong Kong dollars (128 US
dollars) have been discovered in recent weeks, the Hong Kong Monetary
Authority said.

As a result, the authority has recalled three million notes from
banks, all of them from the HSBC issuing bank and issued in 2000 and
2002, the notes believed to be targeted by the counterfeiters.

The authority's deputy chief executive Choi Yiu-kwan said at a
briefing there were no plans for a general recall of all 1,000 Hong
Kong dollars bills as that might cause chaos.

Such a move would undermine confidence in the notes and might lead
people to believe they had to take in currency kept at home as
quickly as possible or face losing their money, Choi said.

A fortnight ago, 12 people from China and Vietnam were arrested
and 700 high-quality fake notes with the dates 2000 and 2002 were
seized, but the bogus notes have kept on appearing.

Some business and restaurants have put up signs saying they will
not accept 1,000 Hong Kong dollar bills and bank customers are
insisting on lower-denomination notes.

Hong Kong's currency comes under intermittent assault from
counterfeiters in China who infiltrate the wealthy former British
colony's money supply with increasingly sophisticated fake notes.

Experimental hi-tech plastic 10 Hong Kong dollar bills are being
introduced later this year partly in an attempt to make it more
difficult for counterfeiters to forge the currency.

© 2006 - dpa German Press Agency

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