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security accreditation procedures for manufacturers of euro secure items for euro banknotes (ECB/2008/3) (2008/402/EC) (repealed)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 V CONSEQUENCES OF NON-COMPLIANCE

Article 11 Decision-making procedure

1. In taking any of the decisions referred to in Articles 12 to 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 manufacturer’s comments on the draft report referred to in Article 9(4), specifying:

(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. In all cases where the ECB takes a decision pursuant to 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 decision taken, its scope and duration and in such case shall specify that the NCBs will be notified if there is any further change in the manufacturer’s status.

Article 12 Warning decision

1. If: (a) the final report referred to in Article 9(4) identifies 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 security inspections conducted at that manufacturing site (regardless of whether these instances relate to the same provision in the security rules), then the ECB shall issue a warning decision to the manufacturer.

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

If the final report referred to in Article 9(4) 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 manufacturer 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 procedures relating to that euro secure item) until the 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.

Article 14 Revocation of full or temporary security accreditation

1. The ECB shall take a decision to revoke a manufacturer’s full security accreditation in the following circumstances:

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

(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 with respect to which a warning has already been 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.

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

4. Where the possession of euro secure items by the manufacturer after revocation could put the integrity of euro 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.

Article 15 Procedure to suspend euro secure activity in exceptional circumstances

1. In exceptional circumstances, where the 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.

2. As soon as possible after a suspension pursuant to 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

1. The ECB shall keep a register of security accreditations. The register shall:

(a) list the manufacturers which have been granted full or temporary security accreditation and the relevant manufacturing 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.

2. The ECB shall make information from the register available to all NCBs and to other accredited manufacturers.

3. If the ECB takes a decision under Article 13, it shall record 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.

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.

5. If euro secure activity is suspended in exceptional circumstances pursuant to Article 15, the ECB shall inform any potentially affected third party manufacturers 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).