In mid-December 2021, the Bank of Mexico (Banxico) submitted to public consultation (which was closed on January 7) a project of modifications to the regulation on the matter, with which it seeks to put an end to counterfeit banknotes in the ATMs.
In its comments to said consultation, the Association of Banks of Mexico (ABM) responded that today there are no ATMs on the market that have the technology to detect allegedly counterfeit bills, so that said measure would be unfeasible if fulfilled in three years. after its publication, as established by the project.
“We consider that the identification and authenticity of allegedly false pieces through ATMs, in accordance with the project, is an obligation that is impossible to comply with, disproportionate and unreasonable, as there are no ATMs on the market with this technology or providers that ensure its development. ”, he points out.
The project proposes, roughly, that credit institutions must retain, as allegedly false pieces or altered bills, those that they detect in any operation carried out through their ATMs and then generate a retention receipt; record the operation and send the parts to the central body.
In this regard, the ABM, in its comments made on January 7, highlights that this union supports initiatives that have to do with the improvement of technology, the protection of the interests of users of banking services and the surveillance of circulation of tickets. However, it highlights the impossibility of having technological infrastructure and, therefore, of fulfilling the obligations derived from the project.
The foregoing, he details, because it forces banks to have technology in their ATMs for the detection of allegedly false pieces, which they currently do not have and, in which case, their compliance would depend on third parties (suppliers, developers or manufacturers) that they are not under the control of the banks.
“It could be that the supplier or manufacturer decides not to develop said ATM’s due to the cost that this would imply”, he points out.
The ABM highlights that the project does not contemplate that the banks have processes to renew their technology, with annual budgets and business plans with a duration between five and 10 years, which would be affected by modifying their entire network.
In its comments, the banking union stresses that there is no certainty that existing providers can develop said technology, in addition to the fact that, in the event that one could, there is no certainty of solving the demand for them, in addition to the fact that there is no guarantee that it is feasible for them to produce them economically and in terms of time, or that they have sufficient capacity to provide all the necessary preventive and corrective maintenance services.
“Banco de México requests technology that is not found in other regions or countries such as the Eurozone,” he emphasizes.
He adds that according to Banxico’s own regulations, banknotes have certain visual and tactile security elements, which mean that authentication via ATMs cannot be 100 percent. “Additionally, it has recommended touching, looking and turning the pieces to consider these elements, for which we consider that the technology does not exist for it.”
Use of the devices
The ABM argues that the possibility of ATMs retaining allegedly counterfeit pieces would result in discouraging the use of these devices with respect to operations related to the payment of credits and goods or services, and would increase the volume of complaints by customers.
He points out that in the event that a single supplier or manufacturer is able to develop this type of ATM with the requested technology, it could affect competition.
Reference-www.eleconomista.com.mx