2008/402/EC: Decision of the European Central Bank of 15 May 2008 on security accreditation procedures for manufacturers of euro secure items for euro banknotes (ECB/2008/3)
Date: 2008-05-15
Institutions: European Central Bank
Subjects: European Central Bank, euro, issuing of currency, paper money, safety standard

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EUROPEAN CENTRAL BANK

DECISION OF THE EUROPEAN CENTRAL BANK

of 15 May 2008

on security accreditation procedures for manufacturers of euro secure items for euro banknotes

(ECB/2008/3)

(2008/402/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

(4)

Having regard to the Treaty
Community, and in particular Article 106(1) thereof,

establishing the European

The ECB is responsible for establishing and maintaining a
system that ensures that euro secure items may only be
delivered to euro area national central banks, national
central banks of Member States that are preparing to
adopt the euro (subject to a decision of the Governing
Council), other accredited manufacturers and/or the ECB.

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank (hereinafter the ESCB
Statute), and in particular Article 16 thereof,

(5)

It
is necessary to amend Guideline ECB/2004/18 of
16 September 2004 on the procurement of euro
banknotes (1), accordingly,

Whereas:

HAS DECIDED AS FOLLOWS:

(1)

(2)

(3)

Article 106(1) of the Treaty and Article 16 of the ESCB
Statute provide that the European Central Bank (ECB) has
the exclusive right
to authorise the issue of euro
banknotes within the Community. This right includes
the
the
to protect
to take measures
integrity of euro banknotes as a means of payment.

competence

for

To maintain the general public’s confidence in euro
it is necessary to
banknotes as a means of payment,
specify minimum security rules
the production,
processing, storage and transport of euro banknotes
and their components, and other related materials and
information requiring security protection, the loss, theft
or publication of which could damage the integrity of
euro banknotes or contribute to the production of coun-
terfeit euro banknotes or their components. All entities
should comply with the
involved in such activities
security rules, the content of which may, however, vary
depending on the type of activity.

compliance with the

It
is necessary to establish a security accreditation
procedure which confirms that manufacturers comply
with the security rules, as well as procedures to ensure
and
ongoing
moreover to provide for various types of consequences
in the event of non-compliance with them. Such conse-
quences range from giving a warning to revoking security
accreditation and should be proportionate to the nature
of the instance of non-compliance identified.

security

rules

SECTION I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Decision:

(a)

‘NCB’ means the national central bank of a Member State
that has adopted the euro;

(b) ‘future Eurosystem NCB’ means the national central bank of
a Member State that has not adopted the euro but has
fulfilled the conditions set for the adoption of the euro
and in relation to which a decision on the abrogation of
the derogation (pursuant to Article 122(2) of the Treaty) has
been taken;

(c)

‘euro secure items’ means the first series of euro banknotes
and their components and other related materials or infor-
mation requiring security protection, the loss, theft or publi-
cation of which could damage the integrity of euro
banknotes or assist in the production of counterfeit euro
banknotes or their components;

(1) OJ L 320, 21.10.2004, p. 21.

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(d)

‘security rules’ means the substantive rules for the acqui-
sition of euro secure items and any euro secure activity,
as laid down in separate rules by the ECB from time to
time;

(e)

‘purchaser’ means a company, organisation or national
central bank that is involved in some way in contracting
as a purchaser for the production, processing or storage of
euro secure items;

(f)

(g)

‘manufacturing site’ means any premises that a manufacturer
uses, or wishes to use,
the production, processing
for
(including destruction) or storage of euro secure items
prior
to the purchaser or, where
transport
applicable, to a specialist destruction facility;

to their

activity’ means

‘euro secure
following:
production, processing (including destruction), storage or
transport of euro secure items;

any of

the

Article 2

General principles

1.
The security rules adopted by the ECB are minimum rules.
Manufacturers may adopt and implement stricter standards, but
the ECB shall only assess compliance with its own security rules.

Notwithstanding any provisions laid down by the ECB
2.
elsewhere that apply this Decision to specific procedures
relating to euro banknotes, this Decision shall not apply to
the processing and storage of euro banknotes that are registered
with an NCB as having been produced but not issued.

An accredited manufacturer may only supply euro secure

3.
items to the following:

(a) another accredited manufacturer;

(b) an NCB;

(h) ‘manufacturer’ means any entity that is, or wishes to be,
involved in a euro secure activity, except entities that are
only, or only wish to be,
involved in the transport or
destruction of euro secure items, and ‘accredited manu-
facturer’ means a manufacturer which has been granted
full security accreditation;

(i)

(j)

‘full security accreditation’ means the status, the scope of
which is set out in Article 3, granted by the ECB to a
manufacturer for a euro secure activity in respect of a
euro secure item;

‘non-compliance’ means an instance in which any of the
following do not comply with the relevant parts of the
(i) the security arrangements put in place
security rules:
(ii) actions
pursuant to this Decision by a manufacturer;
taken by an accredited manufacturer carrying out euro
secure activity; or (iii) actions taken by a manufacturer
with temporary security accreditation preparing to carry
out euro secure activity;

(c) subject to a decision of the Governing Council, a future

Eurosystem NCB; or

(d) the ECB.

4.
The Executive Board shall take all decisions relating to
manufacturers’ security accreditation taking into account the
views of
shall be
the Banknote Committee. Moreover,
competent to grant any consent pursuant to Article 3(6).

it

5.
All costs and associated losses that a manufacturer incurs
in connection with the application of this Decision shall be
borne by the manufacturer.

Article 3

Full security accreditation

1.
An accredited manufacturer may only carry out a euro
secure activity in respect of a euro secure item if the ECB has
granted it full security accreditation for that euro secure activity.

(k)

‘security inspection’ means an inspection of a euro secure
activity for the purposes of assessing whether the security
arrangements at a manufacturing site comply with the
security rules; and

2.
A manufacturer may be granted full security accreditation
for a euro secure activity in respect of a euro secure item
provided that:

(l)

‘temporary security accreditation’ means the status,
the
scope of which is set out in Article 4, granted by the
ECB to a manufacturer confirming that it may prepare to
carry out a euro secure activity in respect of a euro secure
item.

(a)

the security arrangements that it has in place at a particular
manufacturing site for the planned euro secure activity
comply with the relevant parts of the security rules;

(b) any printing works involved in the planned euro secure

activity is physically located in a Member State; and

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(c) any manufacturing site other than a printing works involved
in the planned euro secure activity is located in a Member
State or in a member state of the European Free Trade
Association.

(a)

the security arrangements that it has in place at a particular
manufacturing site for the planned euro secure activity, with
the exception of process control and audit trail procedures
for production, processing, and storage of the euro secure
items for which accreditation is applied for, comply with
the relevant parts of the security rules;

3.
The Executive Board may amend the scope of the location
requirement determined pursuant to paragraph 2(c), taking into
the Banknote Committee. Any such
account
decision shall be promptly notified to the Governing Council,
and the Executive Board shall abide by any decision of the
Governing Council on this issue.

the views of

(b) the manufacturer is able to demonstrate that it is capable of
developing and putting in place such process control and
audit trail procedures as described in subparagraph (a) that
will comply with the security rules;

Full security accreditation shall be granted to a manu-
4.
facturer
status may be
affected or it may be revoked by a decision taken pursuant to
Articles 13 to 15.

for an unlimited period, but

its

5.
An accredited manufacturer may only carry out a euro
secure activity at the manufacturing site for which it has been
granted security accreditation and in respect of the particular
euro secure items specified for that manufacturing site. An
accredited manufacturer may arrange transport of euro secure
items to a purchaser and, if necessary, arrange for them to be
destroyed on its behalf (including for any transports related
thereto) at a specialist destruction facility in accordance with
the relevant parts of the security rules. Any non-compliance
with the abovementioned parts of the security rules occurring
during such destruction or transport shall be treated as an
instance of non-compliance by the accredited manufacturer.

An accredited manufacturer may not, without the ECB’s
6.
prior written consent, outsource or transfer to another manu-
facturing site or to any third party (including the manufacturer’s
production,
subsidiaries
processing (including destruction) or
storage of any euro
secure items.

companies)

associated

and

the

(c) any printing works involved in the planned euro secure

activity is physically located in a Member State; and

(d) any manufacturing site other than a printing works involved
in the planned euro secure activity is located in a Member
State or in a member state of the European Free Trade
Association.

3.
A manufacturer with temporary security accreditation for
a euro secure activity in respect of a euro secure item may
receive confidential euro banknote production specifications
and prepare to carry out that euro secure activity.

4.
A manufacturer with temporary security accreditation for
a euro secure activity in respect of a euro secure item may not
carry out that euro secure activity or any other euro secure
activity for which it has not yet been granted security accre-
ditation, and it may not transfer or assign its temporary security
accreditation to a third party (including any of its subsidiaries
and associated companies).

Article 4

Temporary security accreditation

1.
A manufacturer which has not been granted full security
accreditation may be granted temporary security accreditation
for a planned euro secure activity in respect of a euro secure
item for a period not exceeding one year. If the manufacturer
tenders for or is commissioned with a euro secure activity
within this period, its temporary security accreditation may be
extended until the ECB has taken a decision on whether to
grant it full security accreditation.

to Article 7(1)(d), unless:

5. Without prejudice to the maximum time limit for expiry
of
temporary accreditation and any extension thereof as
temporary security accreditation
stipulated in Article 4(1),
shall expire automatically on the date specified by the ECB
pursuant
the manufacturer is
granted full security accreditation for euro secure activity in
in
respect of the relevant euro secure item before that date,
which case temporary security accreditation is deemed to
expire on the date on which such full security accreditation is
granted; or (b) it is revoked by a decision taken pursuant to
Article 14.

(a)

2.
A manufacturer may be granted temporary security
accreditation for a planned euro secure activity in respect of a
euro secure item provided that:

Temporary security accreditation may also be affected by a

6.
decision taken pursuant to Article 12 or Article 15.

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SECTION II

SECURITY ACCREDITATION PROCEDURE

Article 5

information from the manufacturer in relation to the
tional
items listed in paragraph 1. If the ECB requests additional infor-
mation, it shall inform the manufacturer of the outcome of the
check within 20 ECB working days from the date of receipt of
the additional information.

Initiation request and appointment of security inspection
team

1.
A manufacturer that wishes to carry out a euro secure
activity in respect of one or more euro secure items shall
make a written request
to the ECB to initiate the security
accreditation procedure. This request shall:

3.
The ECB shall reject the initiation request and inform the
manufacturer in writing of its decision to do so and the reasons
therefor by no later than the time limits specified in paragraph
2 if:

(a) specify the euro secure item(s), the manufacturing site and
its location and the euro secure activity for which the
manufacturer seeks security accreditation;

(a)

the manufacturer fails to provide the information or the
written undertaking required pursuant to paragraph 1;

(b) provide information showing that its production equipment
is capable of producing the euro secure item(s) for which
accreditation is sought;

(c) provide

information concerning

the physical

security

arrangements at the manufacturing site;

(d) include a written undertaking from the manufacturer that it
will comply with all applicable provisions of this Decision
as it may be amended from time to time and a declaration
that it will keep the content of the security rules confi-
dential;

(e)

if the manufacturer intends to use a specialist destruction
facility, include information on the manufacturer’s reasons
for wishing to do so and information on the arrangements
concerning that facility. In particular the manufacturer shall
provide information on the planned arrangements for trans-
porting euro secure items
to and from the specialist
destruction facility and on the planned means of monitoring
the destruction of euro secure items at such facility; and

(f)

state clearly whether the manufacturer is applying for full or
temporary security accreditation for a euro secure activity in
respect of a euro secure item.

2.
the
The ECB shall check the initiation request against
requirements laid down in paragraph 1 and inform the manu-
facturer of the outcome of this check within 20 ECB working
days from the date of receipt of
in
accordance with the procedures laid down in paragraphs 3
and 4. This time limit may be extended once by the ECB, but
the ECB must give the manufacturer written notice thereof.
While the ECB is carrying out this check, it may request addi-

the initiation request,

(b) the manufacturer fails to supply any additional information

requested by the ECB pursuant to paragraph 2;

(c)

the manufacturer has had its security accreditation revoked
and the period of prohibition on reapplication specified in
the revocation decision has not elapsed; or

(d) the locations of any printing works involved and the manu-
facturing site do not meet the requirements laid down in
Articles 3(2)(b) and 3(2)(c), where full security accreditation
is applied for, or in Articles 4(2)(c) and 4(2)(d) where
temporary security accreditation is applied for.

4.
If the manufacturer complies with the requirements laid
down in paragraph 1 and submits any additional information
requested pursuant to paragraph 2, the ECB shall notify the
manufacturer of the date of the initial security inspection by
no later than the time limits specified in paragraph 2. The ECB
shall at the same time provide the manufacturer with:

(a) a confidential list of all euro secure items, such list forming

part of the security rules; and

(b) a copy of those parts of the security rules that relate to the
production, processing (including destruction) and storage
of the euro secure items in respect of which the manu-
facturer seeks security accreditation. The ECB shall provide
the manufacturer with any updates of these rules that are
issued during the security accreditation procedure.

a

experts

appoint

The ECB shall

security inspection team
5.
composed of
from the ECB and NCBs. Such
appointments shall respect the principle of avoiding conflicts
If a conflict of interest arises after appointment,
of interest.
the ECB shall
immediately replace the member in question
with an expert who does not have a conflict of interest.

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Article 6

Initial security inspection

1.
The initial security inspection shall commence no later
than 20 ECB working days from the date on which the manu-
facturer receives the notification referred to in Article 5(4) from
the ECB. Where a manufacturer applies for full security accre-
ditation, the security inspection team shall during the initial
security inspection,
inspect the arrangements for the planned
euro secure activity and visit the manufacturing site in respect
of which the manufacturer has requested full security accre-
ditation, as well as assess any arrangements in respect of a
specialist destruction facility.

the manufacturer pursuant to paragraph 4. Such draft report
shall in particular contain details of:

(a)

the security arrangements in place at the manufacturing site
that comply with the security rules;

(b) any instances of non-compliance with the security rules that

the team has identified;

(c) any action taken by the manufacturer during the inspection;

2.
The security inspection team shall assess whether the
security arrangements that the manufacturer has, or proposes
in place for all aspects of the euro secure activity
to have,
comply with the relevant parts of the security rules.
In the
event that the manufacturer proposes to put in place certain
security arrangements or improvements in order to comply
with the relevant parts of the security rules, full security accre-
such arrangements or
ditation shall not be granted until
improvements are in place. The security inspection team may
conduct an additional
such
proposed arrangements or
improvements comply with the
security rules before the report referred to in paragraph 5 is
submitted to the manufacturer.

inspection to verify whether

3. Where a manufacturer applies for
temporary security
accreditation only, the security inspection team shall visit the
manufacturing site in respect of which the manufacturer has
requested temporary security accreditation and assess whether
the security arrangements that the manufacturer has in place,
trail
with the exception of
procedures for production, processing, and storage of euro
secure items for which temporary security accreditation is
applied for, comply with the relevant parts of
the security
rules. The security inspection team shall also assess whether
the manufacturer demonstrates that it is capable of developing
and putting in place such process control and audit
trail
procedures as will comply with the security rules.

the process control and audit

its

findings.

4.
On completion of the initial security inspection (or, where
applicable, the additional security inspection) and before leaving
the manufacturing site,
the security inspection team shall
provide the manufacturer with an informal and verbal preli-
security
factual
minary summary of
inspection team finds that there are any departures from the
security rules, the ECB shall, within 10 ECB working days of the
date on which the initial
security inspection (or, where
applicable, the additional security inspection) was completed,
write to the manufacturer specifying such departures. The
manufacturer shall have 10 ECB working days from receipt of
the letter in which to communicate to the ECB in writing
comments on the contents of
the letter and any security
arrangements or improvements proposed by the manufacturer.

the

If

(d) any security arrangements or improvements proposed by
the manufacturer
an additional
security inspection is carried out, the security inspection
team’s
such arrangements or
assessment of whether
improvements have been carried out; and

in cases where

and,

(e)

the security inspection team’s assessment of whether full or
temporary security accreditation should be granted in
accordance with the requirements laid down in Articles 3
and 4.

This draft report shall be sent to the manufacturer within
6.
30 ECB working days from the date of completion of the initial
security inspection (or, where applicable, the additional security
inspection). The manufacturer shall have 30 ECB working days
from receipt of the draft report to provide its comments on
such report. The ECB shall finalise the draft report taking into
account the manufacturer’s comments, before taking a decision
pursuant to Article 7.

Article 7

Decision on security accreditation

The ECB shall notify the manufacturer in writing of its
1.
decision on the manufacturer’s request for security accreditation
within 30 ECB working days from receipt of the manufacturer’s
comments on the draft report, or expiry of the time limit for
providing such comments pursuant
to Article 6(6). Such
decision shall clearly identify:

(a)

the reasons for the decision;

(b) the manufacturer;

(c)

the euro secure activity at the manufacturing site for which
security accreditation is granted;

(d) whether full or temporary security accreditation is granted
and, in the case of temporary security accreditation, the date
of its expiry;

5.
The security inspection team shall set out its findings in a
draft report, taking into account any comments received from

(e)

the arrangements for destruction at a specialist facility, if it
is envisaged that such destruction may take place;

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(f)

the euro secure items for which security accreditation is
granted; and

(g) any specific conditions with respect to the points set out in

(a) to (f) above.

The decision shall be based on the information set out in the
final report referred to in Article 6(6), which shall be attached
to the decision. The decision to grant security accreditation shall
also include a copy of the part of the security rules that relates
to the transport of the euro secure items for which security
accreditation is granted.

2.
If the request for security accreditation is rejected or if the
manufacturer requests full security accreditation and is only
granted temporary security accreditation,
the manufacturer
may initiate the review procedure laid down in Article 17.

SECTION III

CONTINUING OBLIGATIONS

Article 8

Continuing obligations of accredited manufacturers and the
ECB

An accredited manufacturer shall

1.
writing and without undue delay of:

inform the ECB in

(a)

the commencement of any procedure for the winding-up or
reorganisation of
the manufacturer or any analogous
procedure;

(b) the appointment of a liquidator, receiver, administrator or

similar officer in relation to the manufacturer;

(c) any intention to subcontract or involve third parties in the
for which the manufacturer has

euro secure activities
security accreditation;

(d) any change made after security accreditation has been
granted that affects, or may affect, the security arrangements
covered by the security accreditation; or

(e) any change of control of

the accredited manufacturer
pursuant to a change in the structure of the ownership or
by any other means.

SECTION IV

FOLLOW-UP SECURITY INSPECTIONS

Article 9

Procedure for follow-up security inspections

1.
The ECB shall carry out follow-up security inspections of
accredited manufacturing sites following the grant of full or
temporary security accreditation to a manufacturer.

2.
Such follow-up security inspections may be carried out
with or without notice. They shall be carried out on working
days between 8:00 and 18:00 local time, unless a different time
has been agreed with the manufacturer.
In the case of
inspections with notice, the ECB shall notify the manufacturer
of the timing of the inspection and submit a pre-inspection
questionnaire to the manufacturer at least 30 ECB working
days before the inspection. The manufacturer shall fill in and
return such questionnaire to the ECB at least 10 ECB working
days before the inspection.

Article 6(2) to (4) and all of Article 6(5) except subpara-
3.
graph (e) shall apply, mutatis mutandis,
to such follow-up
security inspections. In addition, the security inspection team’s
report shall contain details of the security inspection team’s
assessment of whether full or temporary security accreditation
should continue to apply, or whether the ECB should take any
of the decisions referred to in Articles 12 to 14. If the security
its
inspection team considers that Article 15 should apply,
report shall state the reasons for this as shall the letter from
the ECB referred to in Article 6(4). The security inspection
team’s proposals in relation to such measures shall be propor-
tionate to the seriousness of the instance of non-compliance.

4.
A draft report shall be sent to the manufacturer within 30
ECB working days from the date of completion of the follow-up
security inspection. The manufacturer
shall have 15 ECB
working days from receipt of the draft report to provide its
comments on such report. The ECB shall finalise the report
the
before informing the manufacturer of
taking
follow-up security inspection pursuant
into account the manufacturer’s comments.

the outcome of
to Article 10,

Article 10

Outcome of follow-up security inspections

If the report referred to in Article 9 concludes that there
1.
the security inspection
are no instances of non-compliance,
team shall inform the manufacturer of the positive conclusion
of the follow-up security inspection.

The ECB shall

2.
inform accredited manufacturers of any
updates to the security rules that concern the euro secure
activity for which they have been granted security accreditation.

2.
If the report referred to in Article 9 identifies an instance
of non-compliance that the security inspection team deems not
to present an immediate and serious threat to the integrity of
euro banknotes or their components, then the manufacturer’s
full or temporary security accreditation shall remain unaffected.

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In a case pursuant to paragraph 2, the security inspection

3.
team shall inform the manufacturer:

(a) of the instance of non-compliance;

(b) of the fact that, for the moment, the ECB does not intend to
take any of the decisions set out in Articles 12 to 15; and

(c)

that it must remedy the instance of non-compliance within
a time limit that is proportionate to the seriousness of the
instance of non-compliance.

4.
If the report referred to in Article 9 identifies an instance
of non-compliance that requires the ECB to take one of the
decisions set out
take
in Articles 12 to 15,
such decision in accordance with the procedure and time
limit laid down in Article 11.

the ECB shall

In all cases where the ECB takes a decision pursuant to
2.
Articles 13 to 15, the decision shall be proportionate to the
seriousness of the instance of non-compliance. The ECB may
inform the NCBs and all accredited manufacturers of
the
its scope and duration and in such case shall
decision taken,
specify that the NCBs will be notified if there is any further
change in the manufacturer’s status.

Article 12

Warning decision

If: (a) the final report referred to in Article 9(4) identifies
1.
at least one instance of non-compliance of the type described in
Article 10(2); and (b) this type of non-compliance has already
been identified on two occasions in the course of the last three
that manufacturing site
security inspections conducted at
relate to the same
(regardless of whether
provision in the security rules),
issue a
warning decision to the manufacturer.

then the ECB shall

these instances

the outcome of

In relation to the situations set out in paragraphs 1 to 3,
5.
the time limit for the security inspection team to inform the
manufacturer of
follow-up security
inspection in writing shall be 20 ECB working days from the
receipt of the manufacturer’s comments on the draft report
for
referred to in Article 9(4), or expiry of
the time limit
providing such comments pursuant
to that paragraph. The
security inspection team shall attach the finalised report to its
communication to the manufacturer.

the

SECTION V

CONSEQUENCES OF NON-COMPLIANCE

Article 11

Decision-making procedure

In taking any of the decisions referred to in Articles 12 to

1.
15, the ECB shall:

(a) assess the instance of non-compliance, taking into account

the final report referred to in Article 9(4); and

(b) inform the manufacturer in writing of the decision taken
within 30 ECB working days from receipt of the manufac-
turer’s comments on the draft
referred to in
Article 9(4), specifying:

report

(i) the instance of non-compliance;

(ii) the manufacturing site, euro secure item and activity to

which the decision relates;

(iii) the date on which the decision will become effective;

and

(iv) the reasons for the decision.

2.
A written warning issued pursuant to paragraph 1 shall
state that if there is any further instance of non-compliance of
the type referred to in Article 10(2) (regardless of whether such
instance relates to the same provision in the security rules as
any of the previous instances of non-compliance), the ECB will
take a decision under Article 14.

Article 13

Suspension of full security accreditation in relation to new
orders

the final report referred to in Article 9(4)

If
identifies an
instance of non-compliance that the security inspection team
deemed to present an immediate and serious threat
to the
security of euro banknotes or their components but the manu-
facturer was able to demonstrate during the security inspection
that no loss, theft or publication of euro secure items had
occurred, the ECB shall take a decision in which it:

(a)

lays down a reasonable time limit for the manufacturer to
remedy the instance of non-compliance;

(b) suspends the manufacturer’s full security accreditation with
respect to its ability to accept new orders for the euro
secure item in question (including participation in tender
the
procedures relating to that euro secure item) until
time limit in paragraph (a) expires; and

(c) specifies that the manufacturer’s full security accreditation
will be automatically revoked when the time limit
in
paragraph (a) expires unless the manufacturer demonstrates
to the ECB before expiry of the time limit that the instance
of non-compliance has been remedied.

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Article 14

Revocation of full or temporary security accreditation

The ECB shall take a decision to revoke a manufacturer’s

1.
full security accreditation in the following circumstances:

banknotes as a means of payment at risk, the ECB may require
the manufacturer to take measures, such as delivery to the ECB
or an NCB of specified euro secure items or destruction thereof,
to ensure that the manufacturer does not possess any such euro
secure items after revocation becomes effective.

(a) where the final report referred to in Article 9(4) identifies an
instance of non-compliance with the security rules that:

Article 15

Procedure to suspend euro secure activity in exceptional
circumstances

(i) is deemed to present an immediate and serious threat
to the security of euro banknotes or their components,
and the manufacturer failed to demonstrate during the
security inspection that no loss, theft or publication of
euro secure items had occurred;

(ii) indicates

to the security inspection team that an
instance of non-compliance which led the ECB to
take a decision pursuant to Article 13 had not been
remedied within the time limit laid down in that ECB
decision; or

(iii) is of the same type as an instance of non-compliance
to which a warning has already been

with respect
issued pursuant to Article 12; or

(b) where:

(i) a manufacturer refuses to grant a security inspection

team immediate access to a manufacturing site;

(ii) there is a breach of Article 3(1), 3(5), or 3(6); or

(iii) for any other reason it is reasonable for the ECB to
deem that the manufacturer’s conduct could put the
integrity of euro banknotes as a means of payment at
risk.

The ECB shall take a decision to revoke a manufacturer’s

2.
temporary security accreditation where:

(i) there is a breach of Article 4(4); or

(ii) for any other reason it is reasonable for the ECB to deem
that the manufacturer’s conduct could put the integrity of
euro banknotes as a means of payment at risk.

3.
In its revocation decision, the ECB shall specify the date
following which the manufacturer may reapply for full or
temporary security accreditation under Article 5.

In

the

exceptional

circumstances, where

1.
security
inspection team identifies an instance of non-compliance that
it deems to be so serious that the integrity of euro banknotes as
a means of payment could be put at risk unless immediate
action is taken, the security inspection team may suspend the
relevant euro secure activity with immediate effect. Any such
suspension shall be proportionate to the seriousness of the
instance of non-compliance. The security inspection team may
also require the accredited manufacturer to take the measures
referred to in Article 14(4) to ensure that it does not possess
specified euro secure items during the period of suspension. The
accredited manufacturer shall provide the security inspection
team with information concerning any other manufacturer
which may, as a customer or supplier, be indirectly affected
by the suspension.

soon as possible after a suspension pursuant

to
2.
As
paragraph 1,
the ECB shall assess the measure and take a
decision referred to in Articles 12 to 14, or decide that the
suspension should be lifted. In taking such decision, the ECB
shall follow the procedure laid down in Article 11.

Article 16

ECB security accreditation register

The ECB shall keep a register of security accreditations.

1.
The register shall:

(a)

list
the manufacturers which have been granted full or
temporary security accreditation and the relevant manufac-
turing sites;

(b) indicate in respect of each manufacturing site the euro
secure activity and the euro secure items for which full or
temporary security accreditation has been granted;

(c)

indicate any specific conditions pursuant to Article 7(1)(g);
and

(d) record the expiry of any temporary security accreditation.

4. Where the possession of euro secure items by the manu-
the integrity of euro
facturer after

revocation could put

The ECB shall make information from the register

2.
available to all NCBs and to other accredited manufacturers.

L 140/34

EN

Official Journal of the European Union

30.5.2008

If the ECB takes a decision under Article 13, it shall record
3.
the duration of the measure and all changes in status relating to
the name of the manufacturer, the affected manufacturing site
and the euro secure item and/or euro secure activity concerned.

The Governing Council shall review the decision in the
3.
light of the manufacturer’s request and communicate a decision
in writing to the manufacturer, giving reasons for the decision,
within two months of receipt of the request.

4.
If the ECB takes a decision pursuant to Article 14, it shall
remove the name of the manufacturer, manufacturing site, euro
secure item and euro secure activity from the register.

4.
The application of paragraphs 1 to 3 shall be without
prejudice to any rights under Articles 230 and 232 of the
Treaty.

affected third party manufacturers

5.
If euro secure activity is suspended in exceptional circum-
stances pursuant to Article 15, the ECB shall inform any poten-
tially
referred to in
Article 15(1) of the suspension and that further information
on the status of the suspended accredited manufacturer will
be provided after the ECB has assessed the suspension and
taken a decision pursuant to Article 15(2).

SECTION VI

FINAL PROVISIONS

Article 17

Review procedure

1. Where the ECB has taken a decision:

(i) to reject a request

to initiate the security accreditation

procedure;

(ii) to refuse to grant full or temporary security accreditation;

(iii) to grant

temporary security accreditation following a

request for full security accreditation; or

(iv) pursuant to Articles 12 to 15;

such decision submit a written request

the manufacturer may within 30 ECB working days of notifi-
cation of
to the
Governing Council to review the decision. The manufacturer
shall
include its reasons for such request and include all
supporting information.

Article 18

Consequential amendment

Article 7(1)(c) of Guideline ECB/2004/18 is replaced by the
following:

‘(c) printing works shall have been granted full or temporary
to Decision
security accreditation by the ECB pursuant
ECB/2008/3 of 15 May 2008 on security accreditation
procedures for manufacturers of euro secure items for
euro banknotes and have been confirmed as eligible by
the Governing Council, acting on the Executive Board’s
assessment of their compliance with the following:

(i) the EBQR decided separately by the Executive Board
taking into account the Banknote Committee’s views;

(ii) the health and safety requirements decided separately
by the Executive Board taking into account
the
Banknote Committee’s views; and

for

(iii) the requirements

the environmentally friendly
production of euro banknotes decided separately by
the Executive Board taking into account the Banknote
Committee’s views;’.

Article 19

Entry into force

This Decision shall enter into force on 2 June 2008.

Done at Frankfurt am Main, 15 May 2008.

2.
If the manufacturer explicitly so requests in its review
request, giving reasons therefor, the Governing Council may
suspend the application of the decision that is being reviewed.

The President of the ECB

Jean-Claude TRICHET