The issuance of Bearer Bonds has been discouraged for almost 3 decades with the passage of the TEFRA in 1982.

“The interest on any such bonds issued after 1982 would be taxable to the issuer in the case of corporate bonds, and taxable to the holder in the case of municipal bonds.”

I guess that did not smack in the face of the Italian authorities when they intercepted 2 Japanese men who held $134.5 billion in fake US Government Bearer Bonds.

“Italian law does not call for the criminal arrest of persons found to be taking funds without permission to another country. It might have been another matter if the police had determined immediately that the bonds were false.”

Which raises the question: If you have a client who has bonds in bearer form, or is dealing with Bearer Bonds, how can you vouch for their authenticity?