Decision (EU) 2020/637 of the European Central BankShow full title

SECTION II U.K. ACCREDITATION PROCEDURE

Article 5 U.K. Request for accreditation

1. A manufacturer that wishes to be accredited to perform a euro secure item activity or a euro item activity at a specific manufacturing site shall submit a written request to the ECB to initiate the accreditation procedure. This also applies to manufacturers involved in ink production as defined in Article 1(29).

2. The written request for accreditation shall include all of the following:

(a) a description of the euro secure item activity and the euro secure items or the euro item activity and the euro items;

(b) the name of the manufacturer and, where applicable, the legal entity requesting the accreditation on behalf of the manufacturer and its LEI, where available;

(c) the exact location and address of the manufacturing site where the manufacturer intends to perform the euro secure item activity or the euro item activity;

(d) a written declaration signed by the manufacturer’s legal representatives confirming that the manufacturer will keep the accreditation requirements confidential;

(e) a description of the manufacturer’s business that lists the controlling entities as well as their location;

(f) a written declaration signed by the manufacturer’s legal representatives, confirming that the manufacturer complies with all the requirements set out in Articles 3 and 4 of this Decision and is not breaching against any provisions referred to in these Articles;

(g) a written declaration issued and signed by an independent auditor confirming the manufacturer’s compliance with the ethical requirements as laid down in Article 4;

(h) copies of the certifications specified in Article 3(1)(d);

(i) a description of the manufacturer’s subsidiaries or associated companies that it intends to involve in the euro secure item activity or euro item activity;

(j) a description of the third parties, including any of the manufacturer’s subsidiaries or associated companies, to which the manufacturer intends to subcontract or which the manufacturer intends to involve for the performance of the euro secure item activity or the euro item activity;

(k) a summary of the manufacturer’s reason for requesting accreditation and the potential advantages for the Eurosystem if the accreditation were to be granted.

3. An accredited manufacturer that requests accreditation for any other euro secure item activity or euro item activity shall submit a written request to the ECB. The ECB shall inform the accredited manufacturer of the specific documentation listed in paragraph 2 that shall be submitted for each particular case.

Article 6 U.K. Assessment of compliance with the accreditation requirements

1. The ECB may reject a request for accreditation prior to assessing a manufacturer’s compliance with the accreditation requirements in accordance with this Article if the ECB determines that the euro secure item activity or euro item activity for which accreditation has been requested would have an adverse impact on the integrity and the supply chain of euro banknotes.

2. The ECB shall assess a manufacturer’s compliance with the requirements set out in Article 3(1)(b) to (d), and Article 3(3) against the documentation provided in accordance with Article 5 of this Decision.

3. In exceptional cases, the ECB may grant a derogation from the obligation to comply with the requirements set out in Article 4, if it determines that a manufacturer’s non-compliance does not have a significant impact on the manufacturer’s adherence to the accreditation requirements or the integrity of euro banknotes or the ECB’s reputation.

4. If a manufacturer meets the requirements set out in Article 3(1)(c) and (d) and Article 4, or pursuant to Article 3(4) has been granted an exemption from the requirements set out in Article 3(1)(c), the ECB shall provide the manufacturer with documentation containing the accreditation requirements in accordance with Article 3(1)(a). The ECB shall also provide the manufacturer with questionnaires that the manufacturer shall fill out, indicating how it complies with the accreditation requirements. The manufacturer shall fill out and return the completed questionnaires to the ECB within a reasonable time limit, as defined by the ECB. The manufacturer shall indicate how its measures comply with the relevant accreditation requirements and shall expressly disclose any limitations that might prevent the manufacturer from complying with the accreditation requirements, in particular any national legislation on using specialist destruction facilities where it is not possible to make these facilities available at the manufacturing site.

5. As part of its assessment of the manufacturer’s compliance with the relevant accreditation requirements in accordance with Article 3(1)(a), the ECB shall first check that the manufacturer complies with all the security requirements, which are set out in a separate decision. Once a manufacturer’s compliance with the security requirements has been verified, the ECB shall verify the manufacturer’s compliance with the other accreditation requirements set out in accordance with Article 3(1)(a). All assessments may take the form of on-site or off-site inspections in accordance with Article 11.

6. Where necessary, the ECB may ask the manufacturer to submit, clarify or complete any of the following within a reasonable time limit, as defined by the ECB:

(a) documentation to be submitted in accordance with Article 5;

(b) documentation to be filled out in accordance with paragraph 4;

(c) information to be provided in accordance with paragraph 5.

7. The ECB shall reject a request for accreditation that is incomplete or erroneous or that is not completed within the time limit, following the ECB’s request for additional information, clarification or completion under paragraph 6. The ECB shall also reject a request for accreditation where the request and the documentation to be provided are complete, but which show that the manufacturer does not comply with the accreditation requirements laid down in Articles 3 and 4.

Article 7 U.K. Grant of accreditation

1. The ECB may grant a manufacturer an accreditation for the requested euro secure item activity or euro item activity at a manufacturing site if that manufacturer has successfully demonstrated its compliance with the accreditation requirements set out in Articles 3 and 4 or if the ECB grants a derogation in accordance with Article 6(3).

2. The ECB shall grant an accreditation in the form of a decision specifying the legal entity, the manufacturing site and the euro secure item activity or the euro item activity for which the accreditation has been granted.

3. Following notification of the accreditation, the accredited manufacturer shall inform the ECB, in a timely manner before the start date of the respective euro secure item activity or euro item activity, in order for the ECB to proceed with the relevant inspections during a euro secure item activity or a euro item activity.

Article 8 U.K. ECB accreditation register

1. The ECB shall maintain an accreditation register, which shall be made available to NCBs and future Eurosystem NCBs and to accredited manufacturers via the ECB banknotes extranet. The accreditation register shall contain all of the following:

(a) a list of all manufacturers that have been granted an accreditation;

(b) with respect to each accredited manufacturer:

(i)

an indication of the euro secure item activity or the euro item activity for which an accreditation has been granted;

(ii)

the manufacturing site for the euro secure item activity or the euro item activity for which an accreditation has been granted;

(iii)

information on the euro secure items or euro items produced at each manufacturing site.

2. The ECB shall regularly update the accreditation register with the accreditation status of accredited manufacturers, as well as with the information provided by the accredited manufacturers under this Decision. For the purpose of regularly updating the accreditation register, the ECB may collect from accredited manufacturers, the NCBs and future Eurosystem NCBs any other relevant information that the ECB considers necessary to maintain the accuracy and correctness of the information in the accreditation register.

3. If the ECB adopts a suspension decision under Article 17 and after it has notified the accredited manufacturer of this decision, it shall record all of the following information in the accreditation register without delay:

(a) the scope and duration of the suspension;

(b) all changes that affect the accredited manufacturer’s accreditation status relating to:

(i)

its name;

(ii)

the relevant manufacturing site;

(iii)

the euro secure item or the euro item and the euro secure item activity or the euro item activity affected by the suspension, in compliance with the findings of the suspension decision.

4. If the ECB adopts a revocation decision pursuant to Article 18 and after it has notified the accredited manufacturer of this decision, it shall remove all the following information from the accreditation register without delay in accordance with the findings of the revocation decision:

(a) the name of the accredited manufacturer;

(b) the manufacturing site;

(c) the euro secure item or the euro secure item activity;

(d) the euro item or the euro item activity.

5. An accredited manufacturer shall inform the ECB if the information about the accredited manufacturer in the accreditation register is incomplete or erroneous. If the ECB determines that such information is incomplete or erroneous, the ECB shall amend the accreditation register.

Article 9 U.K. Obligations of accredited manufacturers to maintain their accreditation

An accredited manufacturer shall comply with the following obligations to maintain its accreditation for the relevant manufacturing site:

(1)

keep the accreditation requirements confidential and respect the ECB confidentiality classification of all documents as provided in the ECB banknotes extranet;

(2)

inform the ECB in writing of any renewal of or change in any of the certifications referred to in Article 3(1)(d), providing each time, within three months of the date of the renewal or change, a copy of the new or amended certificate;

(3)

immediately inform the ECB in writing in the case of revocation of any of the certificates relating to the accreditation requirements referred to in Article 3(1)(d) or, when relevant, in Article 4(3);

(4)

provide on an annual basis, and within two months of the end of a calendar year, an independent auditor’s declaration that certifies all of the following:

(a)

the implementation and operation of a corporate compliance programme as referred to in Article 4(3);

(b)

the accredited manufacturer has not been involved in any of the circumstances listed in Article 4(1) and (2);

(5)

immediately inform the ECB in writing on the expiry of an uninterrupted period of 36 months in which the accredited manufacturer has not carried out any euro item activity, with the exception of destruction, storage, analysis or internal movement of euro secure items within a manufacturing site, or conducted any euro secure item activity;

(6)

report to the ECB in writing, when performing a euro secure item activity, in accordance with the security requirements, any discrepancy in quantities of euro secure items identified during a euro secure item activity at its accredited manufacturing site;

(7)

if intending to carry out any of the following activities, immediately inform and request prior written consent from the ECB:

(a)

changing any measure at the relevant manufacturing site that in any way affects, or may affect, compliance with the relevant accreditation requirements;

(b)

changing its ownership structure;

(c)

initiating a procedure to wind up the accredited manufacturer or any similar procedure;

(d)

reorganising its business or structure in any way that may affect the activity for which accreditation has been granted;

(e)

subcontracting or involving third parties, including any of the accredited manufacturer’s subsidiaries or associated companies, in a euro secure item activity or euro item activity for which the manufacturer has been accredited, regardless of whether the subcontracting or involvement of third parties in the euro secure item activity or euro item activity is to be carried out at the relevant manufacturing site or at another site;

(8)

immediately inform the responsible NCBs in writing if any of the situations listed in point (7)(e) arises;

(9)

immediately inform the ECB in writing if any of the following events occur:

(a)

the accredited manufacturer or any of its controlling entities has been the subject of a conviction by final judgment for any of the activities listed in Article 4(1);

(b)

the accredited manufacturer or any of its controlling entities is involved in any of the situations listed in Article 4(2);

(10)

immediately inform the ECB in writing when it intends to start a qualification process, as separately laid down by the ECB in the relevant quality requirements, for any euro secure item or euro item. The notification shall include information about the planned start and end date of the qualification process;

(11)

establish the required procedures to ensure that the latest versions of all relevant documents available to accredited manufacturers via the ECB banknotes extranet have been distributed appropriately at the accredited manufacturing site.

Article 10 U.K. Prior written consent of the ECB

1. The ECB shall grant prior written consent within a reasonable time limitfor activities listed in point (7) of Article 9in cases where all relevant accreditation requirements and all relevant obligations are complied with by the requesting accredited manufacturer.

2. The ECB may grant prior written consent subject to an accredited manufacturer’s compliance with any restrictions or obligations which the ECB may impose on the requesting accredited manufacturer.

3. The ECB may deny prior written consent where it concludes that the accredited manufacturer’s ability to comply with the accreditation requirements or obligations will be compromised if the accredited manufacturer conducts any of the activities listed in point (7) of Article 9.

Article 11 U.K. Inspections

1. The ECB shall assess whether an accredited manufacturer complies with the accreditation requirements by conducting on-site or off-site inspections.

2. The ECB shall conduct off-site inspections in relation to any documentation requested by the ECB that is relevant for assessing the accredited manufacturer’s compliance with the relevant accreditation requirements. Any request for documentation that the ECB addresses to an accredited manufacturer shall not constitute an off-site inspection unless the request refers explicitly to an off-site inspection.

3. The ECB may conduct on-site inspections, whether announced in advance or unannounced.

4. During an on-site inspection, the ECB shall assess an accredited manufacturer’s compliance with the relevant accreditation requirements at the manufacturing site.

5. The ECB shall commence announced on-site inspections on the date agreed in advance with the accredited manufacturer. The accredited manufacturer shall ensure that the relevant euro secure item activity or euro item activity is being performed at the manufacturing site during the inspection.

6. The ECB shall decide on the duration of the announced or unannounced on-site inspection to ensure that sufficient information is obtained to assess the accredited manufacturer’s compliance with all accreditation requirements. The ECB may put on hold an ongoing on-site inspection in order to permit the accredited manufacturer to provide evidence of compliance with the relevant accreditation requirements.

7. The accredited manufacturer shall grant the ECB access to all areas of the manufacturing site and to all documents which the ECB considers relevant to the inspection.

8. The accredited manufacturer shall return to the ECB any documentation required for the inspection, such as the completed inspection questionnaire, available on the ECB banknotes extranet or any other documentation that the ECB submits to the accredited manufacturer prior to the inspection, at least ten business days before the date on which the on-site inspection is due to commence or as otherwise specified by the ECB.

Article 12 U.K. Instances of non-compliance

1. Each of the following acts of an accredited manufacturer shall constitute an instance of non-compliance:

(a) failure to meet any of the accreditation requirements listed in Article 3(1);

(b) with regard to previously identified instances of non-compliance, failure to implement improvements within the time limits as agreed with the ECB;

(c) failure to meet any of the obligations listed in Article 9;

(d) refusal to grant the ECB immediate access to the manufacturing site or to any documents which the ECB considers necessary to the inspection;

(e) a discrepancy in the records of euro secure items connected to an infringement of the security requirements by the accredited manufacturer;

(f) submission of a proven false or misleading declaration or proven falsified document to the ECB and, where applicable, to an NCB, pursuant to any of the procedures under this Decision;

(g) any breach of its obligation to respect the confidentiality classification of any document related to this Decision.

2. The ECB shall notify the accredited manufacturer of any instance of non-compliance with the relevant accreditation requirements listed in Articles 3 and 4, or the obligations set out in Article 9 within a reasonable time limit after the ECB has become aware of the instance of non-compliance.

3. An accredited manufacturer shall remedy any instance of non-compliance within a time limit agreed with the ECB in accordance with Article 13(3).

Article 13 U.K. Inspection outcome

1. The ECB shall send a preliminary inspection report to the accredited manufacturer, specifying any instance of non-compliance with the accreditation requirements identified during the course of an inspection, within one of the following periods:

(a) 30 business days from the date on which the relevant on-site inspection was completed;

(b) 40 business days following the ECB’s receipt of any relevant documentation as part of an off-site inspection, in particular with respect to the obligations laid down in Article 9.

2. In the preliminary inspection report, the ECB may include recommendations to the accredited manufacturer. These recommendations shall constitute suggestions for improving a measure that nevertheless complies with the accreditation requirements.

3. The accredited manufacturer shall have 15 business days from receipt of the preliminary inspection report to communicate to the ECB in writing its findings regarding the instances of non-compliance identified during the inspection and the recommendations made pursuant to paragraph 2. The accredited manufacturer shall provide details of any measures it intends to implement in relation to the instances of non-compliance, including proposed time limits for implementing these measures. The ECB shall assess the proposals and impose time limits, which shall be proportionate to the seriousness of the instance of non-compliance.

4. The ECB shall provide the inspection report to the accredited manufacturer within 40 business days of one of the following taking place:

(a) the ECB’s receipt of the accredited manufacturer’s written comments on the preliminary inspection report and any other relevant information requested by the ECB to finalise its assessment;

(b) the expiry of the time limits for making written comments on the preliminary inspection report, where such comments have not been received.

5. The ECB shall include in the inspection report the inspection findings, the relevant inspection documentation, the comments received from the accredited manufacturer, an assessment of the actions, measures or improvements the accredited manufacturer intends to implement and the related time limits for implementation. The inspection report shall, based on the outcome of the inspection, draw conclusions on whether the accredited manufacturer is, or may become within the proposed time limits, in compliance with the accreditation requirements and whether the ECB should take any of the decisions referred to in Articles 16 to 18.

6. Within 15 business days following receipt of the inspection report referred to in paragraph 4, the accredited manufacturer may submit written comments to the ECB on the content of that report.

7. The ECB shall consider the comments received from the accredited manufacturer and finalise the inspection by implementing the conclusions of the inspection report and informing the accredited manufacturer, and, if relevant, all other accredited manufacturers.

8. Follow-up inspections may be conducted in accordance with Article 11(1) either on-site or off-site to verify that the measures indicated in the inspection report are effectively implemented and comply with the relevant accreditation requirements.

9. If there are major instances of non-compliance with the accreditation requirements that necessitate an urgent ECB decision and that could reasonably be considered to warrant a suspension decision pursuant to Article 17 or a revocation decision pursuant to Article 18, the ECB may decide to shorten the process described in paragraphs 1 to 3, giving the accredited manufacturer a maximum of five business days to comment on the relevant major instances of non-compliance. The ECB shall provide the reasons for such urgency.

10. The ECB may decide to extend the time limits laid down in this Article.

Article 14 U.K. Decision on an immediate stop of euro secure item activity

1. Where the ECB identifies a major instance of non-compliance that could result in the loss or theft of euro secure items or in the unauthorised publication of information related to euro secure items that could damage the integrity of euro banknotes as a means of payment and unless immediate remedial action is taken, the ECB may require the accredited manufacturer to stop the relevant euro secure item activity with immediate effect until the major instance of non-compliance has been remedied. In such a case, the accredited manufacturer shall not resume any euro secure item activity without the prior written consent of the ECB.

2. An accredited manufacturer required to stop a euro secure item activity with immediate effect shall provide the ECB with information concerning any other accredited manufacturer that may, as a customer or supplier, be indirectly affected by the stopping of the euro secure item activity. The ECB may also require the accredited manufacturer to take the measures referred to in Article 18(5) to ensure that it does not possess specified euro secure items during the period in which the euro secure item activity is stopped.

3. The ECB shall inform any potentially affected accredited manufacturer referred to in paragraph 2 if a euro secure item activity of an accredited manufacturer is stopped under paragraph 1. In such a case, the ECB shall notify these accredited manufacturers if there is a change in the status of the accredited manufacturer whose euro secure item activity was stopped pursuant to paragraph 1.

4. Without prejudice to any decisions taken pursuant to Articles 16 to 18, the ECB shall promptly lift a stop on a euro secure item activity if an inspection conducted pursuant to Article 11 concludes that all relevant major instances of non-compliance referred to in paragraph 1 have been remedied.