News in Brief

New Software to Combat ATM Crime

The ATM Security Association (ASA) has launched a new worldwide Crisis and Crime Management Intelligence System (CCMIS).

CCMIS is a centralised, searchable database of ATM incidents providing crime trends, methods of attack, crime migration patterns and information on emerging forms of attack. It has been designed to be fully searchable, including a graphics package. The system includes a theoretical risk register to allow subscribers to the system to see potential and emerging threats.

The CCMIS is operated by ASA and the ATM Industry Association (ATMIA).

Liberia Changes Mind on New High Denomination

Liberia’s House of Representatives has approved the inclusion of a new high denomination L$1,000 bill in the proposed new family of banknotes, reversing its previous decision in nullifying the Central Bank of Liberia’s request.

The House also reversed its decision earlier to allow the printing of new money in 2023, the year in which the presidential and legislative elections will be held. Instead, printing will commence this year, and will also take place in 2022 and 2024.

A contract price of US$45.5 million has been placed on the new series. The total value of new notes and coins to be put into circulation is L$48.7 billion (US$280 million). In addition to the L$1,000, they comprise banknotes of L$20, L$50, L$100 and L$500, and coins of L$5 and L$10.

A Good Year for Spectra Systems

2020 was a successful year for Spectra Systems, developer of taggants and sensor detection systems, along with banknote cleaning and disinfection systems.

Revenue for the year was $14.67 million, a 10.9% increase over the previous year reflecting greater demand from one of its central bank customers, as well as equipment sales. Adjusted EBITDA grew by 16% to $6.4 million.

Key highlights of 2020 were the execution of a contract for phase-one development work for sensor technology development for a central bank, the completion of three quality control systems for a central bank printworks and the delivery of a new contract to enhance existing authentication sensors to detect a unique type of counterfeit notes.

The company is setting future hopes on its fully printed, machine-readable polymer banknotes with covert taggants, which will be formally launched at the Banknote and Currency Conference next February.

It also believes there is significant potential in its Aeris™ banknote cleaning system and its newly developed BDS-1000 decontamination systems, for which it was granted a US patent earlier this year.

ATM Usage Mixed in 2020

In 2020 the number of ATMs worldwide fell slightly according to RBR, which is about to publish its ‘Global ATM Market and Forecasts to 2026’ report.

In fact, 2020 was a mixed year, in which the long-term growth in ATM installations slowed rather than stopped. In 2020 51 countries, out of 110 studied, saw ATM growth. Egypt saw the greatest increase, 12%, as the government encouraged the use of ATMs to maintain access to cash and for depositing cash. On the other hand, China closed 50,000 ATMs on its own, many countries saw ATM services reduced while awaiting better times, and some providers used the pandemic to remove less profitable machines.

The report paints a slightly confusing picture for the future. It suggests growing ATM use in two thirds of countries and that ATMs have a role to play replacing functions previously carried out by tellers and to encourage financial inclusion.

But it also says that between now and 2026 falling cash volumes will cause ATM numbers to fall, with China being a big part of this.

US Coin Production on the Increase Again

The US produced more coins in May than in any month since last August, according to manufacturing figures from the United States Mint. It struck over 1.47 billion coins for circulation last month, an increase of 11.6% from April and 62.9% from May last year. 55% of the coins struck were the lossmaking 1 cent.

The problems of coin shortages in the US of last year have resurfaced, as reported in last month’s Currency News™. According to the Federal Reserve, the issue is not with insufficient coins, but insufficient circulation.

‘As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually into the Federal Reserve, which should allow for the further rebuilding of coin inventories available for recirculation’ it says.

A Step Forward for New BEP Printworks

The BEP’s new currency production facility is a step closer with the publication of the final Environmental Impact Statement (EIS) on its proposed construction and operation.

The new printing plant in the greater Washington DC area will replace the existing premises in the centre of the capital, which are more than 100 years old, at a cost of $1.4 billion. The relocation will involve the construction and operation of an approximately 1 million sq ft printworks and the transfer of some 1,600 personnel from the DC facility, where currency production will be phased out.

The US treasury will now consider the EIS and the alternative (ie. maintaining the status quo), as well as mitigation measures to reduce potential adverse environmental impacts, before executing its Record of Decision giving the final go-ahead.

This should take place within the next few weeks.

Crane Invests in Water Treatment in Malta

Crane Currency has invested €2.6 million to further improve further the sustainability of its Malta banknote printing plant. The investment is in the installation of a water treatment plant that purifies and recycles the wiping solution used in intaglio printing. Using the ultrafiltration process allows the solution to be re-used.

Approximately 500,000 litres of solution are used each week for intaglio printing and 98% of this solution is recovered and reused. The process has a 0% water waste rate, an important benefit since Malta has no natural water resources.

Ultrafiltration uses a wastewater free process. The plant uses ceramic membranes that enable very high percentages of wiping solution recovery, while also eliminating the use of chemicals necessary in traditional water treatment plants.

The next phase of this project will see the installation of a spray-dryer, which will enable an 80% volume reduction of waste after the ultrafiltration process. The system uses a spray method where the ink sludge is sprayed in an air-heated column and transformed into a fine powder. This process enables a low energy operation to achieve a high reduction of waste volume.

This second phase of the project is expected to be fully operational by the end of 2021.