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Design Integration SPRING 2015: EXCHANGE IS DESIGNED to BE a FORUM for ALL THOSE INVOLVED in MAINTAINING SECURE TRANSACTIONS WORLDWIDE THE GLOBAL MAGAZINE OF DE LA RUE Exchange Design integration SPRING 2015 POLYMER BANKNOTES ON THE RISE CRYPTO CURRENCIES RAISING GOVERNMENT REVENUES SPRING 2015: EXCHANGE IS DESIGNED TO BE A FORUM FOR ALL THOSE INVOLVED IN MAINTAINING SECURE TRANSACTIONS WORLDWIDE. WE WELCOME CONTRIBUTIONS AND SUGGESTIONS FOR THE FUTURE. PLEASE SEND THEM TO: [email protected] ON THE FRONT COVER: THE IMAGE SHOWS A CLOSE-UP INTAGLIO PRINT BUTTERFLY AND KINGFISHER HOLOGRAM FEATURED ON THE LATEST DE LA RUE HOUSENOTE. THE GLOBAL MAGAZINE OF DE LA RUE Exchange Foreword The publication of the latest edition of our customer magazine, Exchange, provides the ideal opportunity for me to introduce myself to you as the new Chief Executive of De La Rue. I am proud to join a company which is a leader in its markets and with such a long history of innovation. I intend to work hard with my management team to continue that legacy, delivering high-quality security products and services which our customers value and can rely upon. Long-standing and strong customer relationships are one of De La Rue’s great strengths and I very much look forward to meeting more of our customers over the coming months and years. I hope you find Exchange both interesting and informative. As always, we value your comments on the magazine so please send them to: [email protected] Martin Sutherland Chief Executive Officer 2 4 7 8 CENTRAL BANK EDUCATION POLYMER NOTES POINT THE WAY FORWARD HOW TO CONTROL THE FUTURE MEETING THE TRAINING NEEDS THE WORLD WATCHES AS THE UK PREPARES BANKNOTE QUALITY OF PASSPORTS OF CURRENCY TEAMS FOR PLASTIC BANKNOTES SECURING QUALITY WILL THE WAY WE DURING MANUFACTURE IDENTIFY OURSELVES CHANGE? 10 12 15 INTEGRATED BANKNOTE SERVICE CRYPTO CURRENCIES SEEING IS BELIEVING HOW DE LA RUE’S ONE-STOP SHOP INTERVIEW WITH BANK OF ENGLAND ON NEW PRODUCTS KEEP DE LA RUE AT FOREFRONT BENEFITS CUSTOMERS VIRTUAL CURRENCIES OF BANKNOTE SECURITY THINKING 16 18 20 22 NO LIMITS DELIVERING REVENUE THE BATON BOOK WORLD VIEW DESIGN EXCELLENCE: PROTECTION SOLUTIONS CAPTURING THE NEWS AND EVENTS GOING TO EXTRAORDINARY LENGTHS TAX STAMP SCHEMES BOOST FUNDS HOPES AND DREAMS FROM AROUND FOR CUSTOMERS AND HELP FIGHT ILLICIT TRADE OF YOUNG PEOPLE THE GLOBE EXCHANGE SPRING 2015 DE LA RUE 1 CENTRAL BANKS EDUCATING CURRENCY TEAMS Currency: approaches to staff development EXCHANGE SPRING 2015 DE LA RUE 2 Exchange talked to consultant and central bank trainer Charles Spencer to find out why training for currency teams is so important – and how best to meet their specific needs. In the context of central bank functions, Training away from the office currency issuance is the odd man out. Several organisations run training courses Why? Because it is a predominantly technical for currency managers from central banks and operational business. And perhaps more worldwide. Our own De La Rue Advanced crucially, unlike monetary policy, financial Banknote Manager intensive two-week stability and (for some) banking supervision, course looks in detail at the issues and it is very visible and tangible for the public. policy decisions the managers face and has Since public confidence in currency is attracted over 140 attendees since it began so influenced by the acceptance of its in 2003. Content includes introducing a new banknotes, those working in issuing or series, counterfeiting, durability, selecting currency departments should have the security features, the cash cycle and currency broadest possible training and development. policy. There is discussion on the major With a wider knowledge of banknotes and issues facing the industry and exchange how currency functions, specialists in currency of experiences and solutions. It also offers will understand the bigger picture of how their practical sessions and tours of banknote work fits in, learn how to collaborate and with production sites: design, components, whom, be able to interact more effectively with substrate manufacture and print. suppliers and partners and be better prepared “This course is probably the most for internal career moves. As a director at the Bank of Canada’s currency comprehensive in the field,” says Charles. “For me the missing ingredient is usually department, Charles Spencer was closely “As it’s limited to one representative per involved in two new banknote series and led breadth of knowledge,” says Charles Spencer. major new staff programmes. He set up his country, they learn a great deal from each “I believe a broad exposure to all aspects of own consulting firm www.spencerstrategy.com other and the quality of discussion is very banknotes, from policy to operations, from in 2012, providing independent banknote good. The mixture of theoretical and practical design to destruction, is an asset to anyone advice to central banks. He is also the external exercises makes it very effective.” working at any level in a central bank’s issue facilitator at De La Rue’s Advanced Banknote Central Banking offers a one-week or currency department.” Manager course for central bankers. overview course, but others tend to be more specialist. Those run by De Nederlandsche The challenges Internal focus Bank and the European Central Bank are So why doesn’t this kind of exposure always What is a rounded education for currency more policy oriented, and typically senior happen? Perhaps because currency teams people? Beginning in-house, it’s important currency people are invited. Banco de España are often compartmentalised. Those in to make knowledge sharing integral to provides courses in Spanish and produces a technical and operational functions – typically the corporate culture. “This may require bilingual Spanish-English publication Billetaria optical specialists, physicists or engineers and incentives,” says Charles, “such as making it for currency professionals. By contrast vault and processing teams – often have little a part of performance evaluation.” A handful of the Federal Reserve Bank of New York’s contact with policy people. central banks, including the Bank of England, Management and Operations Seminars There is also the comfort zone factor and and some Scandinavian and central European cover all central banking operations including the reality that day-to-day work, particularly banks, also make staff rotation a priority to currency. in specialist fields, often feels all consuming. promote career development. Other good trade publications include Finally, training for other central bank functions A comprehensive example of internal Currency News, the more broadly focused that focus primarily on economics isn’t a training is the Bank of Canada’s Banknotes Authentication News, both published by preparation for currency work. So separate A to Z programme, offering 21 self-paced Currency Research, and InfoSecura published provision must be made. modules, delivered by internal and external by Intergraf. “I think existing middle management and presenters, to a wide range of staff including new senior people in currency should be the internal partners such as HR and Finance – Networking opportunities priority,” says Charles. “Those who need usually completed over two to three years. Active participation and presentations at a broader outlook and those who are starting Other central banks encourage teams to conferences are excellent ways to expose in a decision-making role. They might be present their work to the whole currency currency staff to others in the field and to policy analysts, economists, managers of department from time to time. keep them abreast of recent developments. policy or operational teams (including cash The three most prominent are each run processing, mutilated banknote handling, Look outside the bank once every two years: the Currency business support planning and infrastructure), External opportunities are many and varied. Conference (which moves around the world), or scientists dealing with banknote A simple idea is to seek invitations from the Banknote Conference in Washington, components who need to get out of the lab. suppliers to visit their operations. After all, and Intergraf (always in Europe) – with its “But training throughout the organisation it’s in their interest to have knowledgeable security printing focus. can pay off. For example, machine operators customers, who will understand better in a Bank of Canada processing centre had the design and production challenges Conclusion been coached on the importance of reporting suppliers face. Staff development challenges are not unique new developments in counterfeits. It meant Such insights can be enlightening for to currency departments. But, knowing they were later the first to spot and report the visitor. One of Charles’ former staff, how critical quality banknotes are to the a new type of counterfeit – which gave the an experienced research engineer on a visit objectives and reputation of central banks, Bank very early warning of a new threat.” to a De La Rue print works, saw for the it is worth addressing the particular needs first time an OptiNota H machine that puts of these expert teams with the management holograms on banknotes. “Of course I knew commitment, creativity and investment in principle how security devices were applied they deserve. to banknotes,” says Claire Marchand, “but the site visit gave me an invaluable opportunity to see the technology at work in real life.” EXCHANGE SPRING 2015 DE LA RUE 3 CURRENCY POLYMER BANKNOTES EXCHANGE SPRING 2015 DE LA RUE 4 The Bank of England’s high-profile decision to introduce a polymer £5 in 2016 and £10 in 2017 has arguably put polymer banknotes firmly on the agenda for many central banks across the world. Exchange looks at the reasons why central banks, including the Bank of England, are taking the decision to move to polymer and the implications that polymer banknotes have for the cash processing industry. Polymer notes point the way forward Prior to its announcement the Bank of Security Durability England carried out a three-year study into One of the strengths of polymer banknotes Increased banknote longevity was another banknote substrates as well as holding a is that they enable central banks to stay key factor in the Bank of England’s decision.
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