Intelligent banknote neutralisation system

Intelligent banknote neutralisation system

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Encyclopedia
Intelligent Banknote Neutralisation System (IBNS) is a security system which protects valuables against unauthorised access to its contents by rendering it unusable by marking all the cash as stolen by a degradation agent when an attempted attack on the system is detected.

Well neutralised banknotes cannot be brought back into circulation easily. They can be linked to the crime scene and restricted procedures are in place to exchange them at the financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...

. This makes stealing neutralised banknotes uneconomical and impractical. The IBNS removes the anticipated reward of the crime and increases the risk of being caught. This not only foils the theft but acts as a deterrent against further attacks.

Today the most common cash degradation agent is ink but other agents are also available.

History


In Europe the design of intelligent systems to protect valuables began in 1980. The overall goal was to create a secure system to provide additional security for Cash-in-transit
Cash-in-transit
Cash-in-transit or Cash/valuables-in-transit are terms used to refer to the physical transfer of banknotes, coins and items of value from one location to another....

. The very first IBNS prototype using ink as neutralization agent was invented in France (Dijon
Dijon
Dijon is a city in eastern France, the capital of the Côte-d'Or département and of the Burgundy region.Dijon is the historical capital of the region of Burgundy. Population : 151,576 within the city limits; 250,516 for the greater Dijon area....

) by the French company Axytrans (part of AXYTEL) in 1983 who changed its name to Oberthur Cash Protection
Oberthur Cash Protection
Oberthur Cash Protection is a French manufacturer of Intelligent Banknote Neutralisation Systems to protect cash, based in Dijon, France. Established in 1985, the company holds one of the first IBNS patents to protect valuables by neutralizing them with ink and, as of 2011, is the largest...

 in 2007. The system used ink as the cash degradation agent.

In 1990 the very first industrialized End-to-End IBNS using security ink as a neutralization agent and accepted to be used in soft-skinned vehicles was introduced to the Belgium market by French company Axytrans.

In 1991 France changed its regulations to allow the use of IBNS in soft-skinned vehicles. The French CIT company VALTIS was the first to implement such a system to service three regional banks.

In 2002, Banque de France
Banque de France
The Banque de France is the central bank of France; it is linked to the European Central Bank . Its main charge is to implement the interest rate policy of the European System of Central Banks...

 implemented an international procedure to treat and exchange neutralized banknotes for CIT professionals.

In 2003, the European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...

 made a decision that defined the process and cost of exchanging neutralized Euro Banknotes among all National Central Banks in Europe.

In 2005, Banque de France
Banque de France
The Banque de France is the central bank of France; it is linked to the European Central Bank . Its main charge is to implement the interest rate policy of the European System of Central Banks...

 implemented a special procedure regarding the treatment of stained banknotes deposited by private persons.

In 2007, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

 implemented a national regulation making the use of IBNS by CIT obligatory. The same year, the Belgian government also implemented a national regulation imposing the use of IBNS for Cash-in-transit
Cash-in-transit
Cash-in-transit or Cash/valuables-in-transit are terms used to refer to the physical transfer of banknotes, coins and items of value from one location to another....

.

In 2010, the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

 finalized a European regulation to harmonize cross-border cash transportation by road. The use of non-armoured vehicles in combination with IBNS is one of two accepted methods of transportation.

Concept


The concept of an Intelligent Banknote Neutralisation System (IBNS) is based upon the notion that criminals seek to maximize their reward while minimizing the potential cost of the crime. Intelligent Banknote Neutralisation Systems remove the anticipated reward of the crime and increase the risk of being caught.

Reducing the reward of the crime is done by removing the value of cash by permanently marking it as stolen with a indelible security ink.
Increasing the risk of being caught is done by tracers and markers added to the ink providing forensic evidence linking the criminal to the crime scene.

IBNS focuses on using technology to protect people, valuables and equipment and avoid using weapons and armoured vehicles.

Legislation and regulations


The use of IBNS is usually regulated by the presence or absence of a legal structure (legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...

 and regulations) as well as the legal conditions applying to the private security sector.

These countries allow neutralising of national banknotes by the National Central Bank:
  • Permit the use of IBNS without legal or professional regulation or other restriction: Latvia
    Latvia
    Latvia , officially the Republic of Latvia , is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia , to the south by Lithuania , to the east by the Russian Federation , to the southeast by Belarus and shares maritime borders to the west with Sweden...

    , Lithuania
    Lithuania
    Lithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...

    , Estonia
    Estonia
    Estonia , officially the Republic of Estonia , is a state in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by Lake Peipsi and the Russian Federation . Across the Baltic Sea lies...

    , Bosnia, Slovenia
    Slovenia
    Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...

    .
  • Legal regulation permits use of IBNS upon citing the regulation: Italy
    Italy
    Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

    , Netherlands
    Netherlands
    The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

    , Norway
    Norway
    Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

    , Denmark
    Denmark
    Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

    , Finland
    Finland
    Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

    .
  • Legal regulation permit to use IBNS with technical agreement: France
    France
    The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

    , Sweden
    Sweden
    Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

    , Belgium
    Belgium
    Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

    , Germany
    Germany
    Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

    , Ireland
    Ireland
    Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...

    , Luxembourg
    Luxembourg
    Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...

    , Hungary
    Hungary
    Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

  • Legal regulation forbids unrestricted use of IBNS: Poland, Romania, Spain.


These countries forbid neutralising of national banknotes by legal regulation or internal regulation by the National Central Bank: Indonesia, Philippines, Thailand, Egypt and others.

Market


There are six major global players in this market: 3SI, Spinnaker, SQS, Villiger, Gehrer, and Oberthur Cash Protection
Oberthur Cash Protection
Oberthur Cash Protection is a French manufacturer of Intelligent Banknote Neutralisation Systems to protect cash, based in Dijon, France. Established in 1985, the company holds one of the first IBNS patents to protect valuables by neutralizing them with ink and, as of 2011, is the largest...

; these companies export IBNS to many countries worldwide.

Six major global players are members of EURICPA – European Intelligent Cash Protection Association. EURICPA focuses on promoting ink staining technology as the most secure and safe solution for CIT
Cash-in-transit
Cash-in-transit or Cash/valuables-in-transit are terms used to refer to the physical transfer of banknotes, coins and items of value from one location to another....

.

The top three players in the IBNS market are 3SI (highest number of IBNS to protect ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...

s), Oberthur Cash Protection
Oberthur Cash Protection
Oberthur Cash Protection is a French manufacturer of Intelligent Banknote Neutralisation Systems to protect cash, based in Dijon, France. Established in 1985, the company holds one of the first IBNS patents to protect valuables by neutralizing them with ink and, as of 2011, is the largest...

(highest total number of systems, highest turnover) and SQS (large number of installed systems, second highest turnover).

There are many smaller companies manufacturing IBNS for local markets.

External links