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security accreditation procedures for manufacturers of euro secure items for euro banknotes (ECB/2008/3) (2008/402/EC) (repealed)

SECTION II SECURITY ACCREDITATION PROCEDURE

Article 5 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:

(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;

(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 confidential;

(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 transporting 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 ECB shall check the initiation request against the requirements laid down in paragraph 1 and inform the manufacturer of the outcome of this check within 20 ECB working days from the date of receipt of the initiation request, 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 additional information from the manufacturer in relation to the items listed in paragraph 1. If the ECB requests additional information, 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.

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

(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 manufacturing 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 manufacturer seeks security accreditation. The ECB shall provide the manufacturer with any updates of these rules that are issued during the security accreditation procedure.

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

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 manufacturer receives the notification referred to in Article 5(4) from the ECB. Where a manufacturer applies for full security accreditation, 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 accreditation, as well as assess any arrangements in respect of a specialist destruction facility.

2. The security inspection team shall assess whether the security arrangements that the manufacturer has, or proposes to have, in place for all aspects of the euro secure activity 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 accreditation shall not be granted until such arrangements or improvements are in place. The security inspection team may conduct an additional inspection to verify whether such proposed arrangements or improvements comply with the security rules before the report referred to in paragraph 5 is submitted to the manufacturer.

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, with the exception of the process control and audit trail 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.

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 preliminary summary of its factual findings. If the security 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.

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

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

6. This draft report shall be sent to the manufacturer within 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

1. The ECB shall notify the manufacturer in writing of its 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;

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

(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.