US embassy cable - 04LAGOS629

UNCLAS LAGOS 000629 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN, ECON, NI 
SUBJECT: NIGERIA: HANDLING OF COUNTERFEIT U.S. CURRENCY 
 
 
1. (U) Summary: An informal survey of Lagos commercial 
banks and currency exchangers suggests that procedures 
for handling counterfeit U.S. currency vary widely. 
Official guidelines do not exist, and counterfeit notes 
are rarely reported to Central Bank or law enforcement 
officials.  End summary. 
 
2. (U) While some bank representatives claim they 
rarely, if ever, receive counterfeit U.S. currency, 
most of those surveyed say they occasionally see 
counterfeit notes.  In the absence of uniform handling 
procedures, most banks simply perforate and return 
counterfeit currency to customers.  Since only one in a 
handful of dollar notes may be counterfeit, bank 
tellers typically make little fuss, particularly if the 
customer is well known.  Other bank representatives say 
they detain and question customers presenting 
counterfeit currency, and some invite Nigerian law 
enforcement officials to investigate if customers are 
uncooperative or unable to provide satisfactory 
explanations. 
 
3. (U) Currency exchangers say they typically return 
counterfeit currency to customers.  In the past, they 
perforated counterfeit notes before handing them back, 
but since most customers claimed they could easily 
return them to their source, this practice gradually 
stopped.  Groups of currency exchangers operating in 
the informal market have apparently created +ACI-security 
checks+ACI- by marking genuine notes in ways unique to each 
particular group.  Unmarked notes are treated with 
suspicion until they are tested, verified, and marked 
accordingly.  Customers aware of this practice allay 
their fears of receiving counterfeit currency by 
requesting marked notes. 
 
4. (U) None of the commercial bank representatives or 
currency exchangers surveyed had any idea how many 
counterfeit notes might be in circulation.  The 
practice of returning counterfeit currency, they say, 
makes record keeping difficult. 
 
5. (U) Post has distributed recommended guidelines for 
the handling of counterfeit U.S. currency to Central 
Bank officials and commercial bank representatives. 
Additional recommendations may be addressed to Joseph 
Sanusi, Governor, Central Bank of Nigeria, Central 
Business District, Abuja, Federal Capital Territory. 
Mr. Sanusi may be reached at +234-9-616-39425/39428 
(phone) or +234-9-616-39904 (fax). 
 
6. (U) Post has also created a distribution list to 
facilitate information exchange with USSS Pretoria. 
Lagos and Abuja economic and regional security officers 
can be reached at List Abuja/Lagos Counterfeit. 
 
HINSON-JONES