Industry Guidelines on Banknote Production - 2010

Home , Currency packaging, Polymer banknote

The International Association of Currency Affairs

The following guidelines are provided to Central Banks, currency producers, and issuers to assist them in the design and production of secure, effective and efficient banknotes that will serve all segments of their economies and societies. These guidelines are intended to provide a framework within which each country can design its own distinctive currency which reflects its culture and values while still conforming to the standards which will allow it to be recognized and used in all circumstances. These guidelines are not intended to limit the future creativity of designers or researchers as they continue to search for new and innovative security features.

Members of the International Association of Currency Affairs will have access to the electronic version of this document and subsequent updates.

IACA is a not-for-profit association organized to provide a forum for consultation and collaboration on matters of interest to stakeholders in the cash payment cycle. Through its Projects and Committees, the association contributes to the set of standards, codes and best practices for cash payments and currency production worldwide.

Our Current Projects include:

The Global Payment Survey Project,

An international initiative started 2 years ago to develop robust international data on retail payment trends. As part of the Project, IACA organizes Central Bank Forums, where we bring together those individuals within Central Banks who work in Research on Payment Methods to discuss and collaborate on various key issues to advance the project. The aim is to produce a Guidelines Document on Survey Procedures to assist those researchers who carry out surveys on payments, with a goal to some form of standardization so that results could be reasonably comparable.

The IACA Currency Awards;

Organized to recognize and promote excellence in the industry. The award nominations are open to any organization or individual supplying products, systems or services and IACA members vote to determine winners. Results are announced every 18 months at the Currency Conference gala Dinner.

The “Industry Guidelines on Banknote Production”

The document you are now reading is published to educate/ assist those new to the Currency Industry. We hope this document proves to be an excellent training reference for individuals entering the industry and great help for those who seek in-depth information.

The “Industry Guidelines on Central Bank Tendering”

These guidelines are intending to help Central Banks avoid the pitfalls of tender document wording to ensure an open and transparent process as inclusive as possible to ensure healthy competition with comprehensive coverage of standard clauses and inclusions to protect all parties to any purchasing agreement. The first edition is expected in early 2011.

For further information regarding IACA please refer to our website; www.currencyaffairs.org

IACA wishes to take this opportunity to thank our membership many of whom contributed to the making of this first version of the guidelines. Particular thanks must go to the following major contributors: Cummins Allison, Currency Research, Securency and SICPA. We expect this to be updated at regular intervals and look forward to receiving any comments or additions you would like to see considered for the next update. IACA at the time of going to press is made up of the following organizations, arranged in no particular order:

Table of Contents

Page Title

7 Interpol Resolutions 9 Banknote Design 10 Banknote Security 12 Materials 13 Printing Technologies 14 Visually Impaired Assistance 14 Quality Control 15 Public Education 15 Coordination 16 Summary 18 Appendix A Substrates 25 Appendix B Overt Security Features 34 Appendix C Inks 44 Appendix D Designing Currency for Automation 56 Appendix E Printing Methodology 61 Appendix F Plate Making 62 Appendix G Glossary of Terms - General 91 Appendix H Glossary of Terms - Trademarked & Brand Named Features

While each country is faced with certain unique issues that relate to the issuance and usage of currency within their country, there are a number of common issues that must be addressed when designing a new banknote series.

The following provides recommended guidelines that if followed should result in a more secure and efficient currency for any country no matter their individual circumstances.

Interpol Resolutions

Interpol has issued a series of recommendations that pertain to the design and security of international banknotes. These resolutions serve as an excellent starting point for currency design and production standards and it is highly recommended that a Central Bank consider adopting them when designing and issuing new currency designs.

The following have been adopted by Interpol:

1. Issuing institutes should insist on the highest guarantees of quality in the currency they produce or have made and that this currency should have incorporated in it, when being made, a large selection of security measures, both in the raw materials (paper or metal) and in its production (printing or striking) (Resolution No.1 of the 4th International Conference on Currency Counterfeiting – 1961);

2. Issuing institutes should withdraw from circulation all currency which has reached a certain degree of deterioration and only leave in circulation currency that is in good condition (Resolution No.2 of the 4th International Conference on Currency Counterfeiting – 1961);

3. The intaglio printing process should be used wherever possible for printing both the face and back of banknotes and other security documents (Resolution No.1 of the 5th International Conference on Currency Counterfeiting – 1969);

4. Issuing institutes should not use for manufacturing banknotes or other security documents paper which is widely used commercially (Resolution No.2 of the 5th International Conference on Currency Counterfeiting – 1969);

5. Issuing institutes should lay down stringent conditions for the choice of inks used to print banknotes (Resolution No.8 of the 5th International Conference on Currency Counterfeiting – 1969);

6. Issuing institutes wishing to incorporate the security feature of a watermark in banknotes and other security documents should employ mould-made, three-dimensional, multi-tone watermark of adequate size and quality so that the subject of the watermark is easily recognizable and there should preferably be no printing over the watermark (61FOMON/RES/9 – 1977);

7. The appropriate systems should be set up in the countries concerned to control the market in second-hand intaglio presses (7/FOMON/RES/4 – 1987);

8. Future designs of banknotes should incorporate numerous high-quality optically variable features and complementary security features, in order to make deceptive counterfeits more difficult to produce and easier to recognize; features that are recognized as providing excellent protection against all counterfeiting would include distinctive watermarks, high-quality security threads, specialized line structures and reflective materials (8/FOMON/RES/5 – 1992).

9. Design shall consider additional security features on the reverse side of banknotes including intaglio. All OVD applications shall be overprinted by intaglio PV/FOMON/2002.

The Interpol resolutions provide some basic guidelines for currency design and issuance but far more consistency is required to assure banknotes meet the international demands for a secure and efficient currency system.

Therefore the International Association of Currency Affairs (IACA) presents the following additional recommended guidelines for a modern currency system.

Banknote Design

A review of the currencies of the world shows that there are virtually an infinite number of designs, images and colours that can be used in currency. In fact the only limitation is the imagination of the designer. However, in order for the banknote to be functional and secure there are a number of features that should be included in the design.

1. Nationality – the design should reflect the heritage and culture of the issuing authority to make it easy to recognize. The public should instantly know the country of issuance and associate the banknotes with that country.

2. Denominations - the denomination is the most important piece of information conveyed with the note, its value. The denomination of each note in the series should be clearly printed in both numbers and text on both the face and the back and repeated ideally as often as deemed possible in all processes to limit counterfeit by splitting etc.

To limit confusion with partial notes, the denomination should be printed a minimum of twice on each side of the note (once on each half of the note), therefore assuring a recognizable denominator on any redeemable portion of a torn note.

3. Serial Numbers – each banknote should have a unique serial number that can be used to identify that note anytime in its circulation life. The serial number should be printed twice, once per half, to provide a serial number on the redeemable portion of a torn note. Production and issuance information should be maintained by serial numbers to provide a history of legitimate banknotes.

4. Central Design Element – the face of the design should contain a single design element, printed in intaglio, which focuses the attention of the public and takes advantage of the quality elements of intaglio printing. In many designs this element is the portrait of a person which takes advantage of the human ability to quickly recognize a face and to detect even very subtle differences in that image.

While portraits are a common feature, they cannot always be employed due to cultural and political reasons and in those cases other central features can be used effectively as long as they are engraved and emphasize the clear lines and three dimensionality of intaglio printing. Ideally, the Intaglio printing should integrate all other security features to limit the danger of single feature counterfeits.

5. Colour – each denomination should have a distinctive colour to assist recognition. It is also recommended that the set of colors should be chosen such that there is distinction also for partially visually impaired persons.

6. Size – varying the size of each denomination will assist in recognizing the various denominations, especially for the visually impaired. Varying the size by denomination may however increase handling costs. In countries with a history of a uniformed size currency system may find that changes to the commercial infrastructure are too expensive to warrant this change. A viable compromise may be to choose a uniform height of the notes with varying widths. In countries where the size of the notes will be varied by denomination, the lowest denomination should be the smallest with the size increasing as the value increases to preclude the use of the lower value substrate to counterfeit higher value notes.

Banknote Security

The security of a nation‟s currency is the primary goal of the issuing authority. The public must have confidence in a nation‟s currency for it to remain an effective medium of exchange. The following guidelines provide a framework for a secure currency design that includes overt, covert and forensic security features.

Overt Security – every banknote requires security features that the general public can easily detect without using any devices to quickly and effectively authenticate their currency. The design should not rely on a single security feature but rather contain several layers of overt security which provides multiple checks for the public and makes the note harder to counterfeit. Overt features should be substrate based, print based and surface based to add to the complexity of the design. At a minimum, banknotes should contain the following overt security:

1. Traditional Features- the design should include security features that the public has become accustomed to finding in banknotes. Features such as watermarks and security threads in paper based notes and clear windows in polymer based notes are still effective against many forms of counterfeiting and are easily recognized by public as well as by foreign visitors and therefore remain effective security features.

2. Intaglio Printing – the distinctive appearance and tactility of Intaglio printing provides the public with key authentication indicators. Interpol recommends that intaglio be used on both sides of the note whenever possible.

It is suggested that the use of Intaglio on both sides of the note enhances security by sealing the complete set of security features, closes the surface of the paper for higher resistance in circulation and provides the unique touch, feel and perception at a glance which distinguish bank notes from any other type of printed matter.

3. Optically Variable Features – the design should contain a minimum of one feature that provides for a colour or image shift as the note is manipulated. Optically variable features include inks, foils and threads and can be incorporated into the substrate, printed or affixed to the surface. In all cases, efforts should be made to incorporate them into the design to increase the difficulty of simulation. Intaglio overprint is recommended.

Covert Security – banknotes must function in a number of machine environments during circulation which require features that assist with automated authentication and denomination determination. As with overt features each banknote should contain multiple levels of covert features.

1. Commercial Machines – today‟s banknotes maybe required to function in a wide variety of commercial equipment associated with vending and gaming, desk top commercial counters, as well as Automated Teller Machines (ATM‟s).

As more and more transactions are machine to person or person to machine, it is imperative that features be included in the banknote that facilitates effective and efficient automated authentication and denominating. As with visual security features it is recommended that multiple machine detectable features are included to complicate the issue for the counterfeiter.

2. Central Bank Equipment – each country should assure that their currency includes a minimum of one highly secure feature which can only be detected by Central Bank detectors on the Bank‟s sorting equipment. This feature provides the last line of defence and assures the purity of the currency being issued by the Bank. In countries with a significant counterfeiting threat, a back up high security feature is also recommended.

3. Forensic Feature – the finished banknote should include a forensic feature which can be utilized by law enforcement to definitively testify that a banknote is either genuine or counterfeit. Forensic features are only detectable in the laboratory and their exact nature should be a closely held secret for security reasons.

Materials

The materials used to produce a nation‟s currency should be exclusively used for bank notes, durable, unique, controlled and of the highest quality. The recommended considerations for each material follow.

Substrate

1. Unique - whether paper or polymer the substrate needs to be unique to that currency. The addition of distinctive fibres or planchettes, threads, watermarks and or some other distinctive marking will make the substrate identifiable to that currency only.

2. Control – the Central Bank should assure through contracts and/or legislation that no one else can obtain their distinctive substrate.

3. Durability – the substrate‟s strength, tear resistance, soil resistance, and its ability to carry safely all overt and covert security features during its life-cycle will be key to the circulation life of the banknotes.

4. Tactility – the consistent and unique “feel” of banknotes has proven to be one of the key factors in the detection of counterfeit notes.

Inks

1. Control – the Central Bank should assure that there are adequate controls over any ink that is deemed an overt or covert security feature. Such inks shall under no circumstances be available to commercial (non-security) printers.

2. Durability – inks and their adhesion to the substrate must be as durable as the substrate they are printed upon and hold up to folding, crumpling, rubbing and exposure to a broad range of chemical agents.

Security Features

1. Unique – any security feature added to a nation‟s currency must be unique to that country. Whether by design, image, colour or effect the feature should not be identical to that used on any other currency or other product.

Specifically any security feature being used in other secure items such as brand protection etc. bears the risk of abuse and confusion in the public.

2. Control – the Central Bank should assure that no one else can obtain the specific feature being used on their banknotes.

3. Durability – it is essential that the security feature remain effective as long as the banknote is in circulation.

Printing Technologies

The final banknote design should incorporate several different printing techniques to provide additional layers of security. The security of any feature is derived from the combination of three unique components: Design, Process and Materials. All three of them shall use the technology to the extent that no commercially available process or simulation may easily be mistaken for genuine in the public. In addition to intaglio, it is recommended that the banknote incorporate, offset (lithography), letterpress, and/or silk screen, and/or Hot Stamping of OVDs.

These printing techniques should be incorporated in such a way as to make reproduction and colour separation difficult. Close and consistent registration between colours and printing techniques is also recommended.

Visually Impaired Assistance

Banknotes should be designed to provide a means for the partially sighted and the blind to be able to discern the denomination of each note without the use of any additional device. The final designs should include:

1. Large Numerals – the denomination should be printed in a large, clear font, and high contrast on each side of the note for the partially sighted.

2. Distinctive colour – each denomination should have a unique, distinctive primary colour to assist the partially sighted.

3. Tactile Denominator – the blind require a tactile system to be able to denominate their currency. Varying the size of the notes (length, width, or both) is an effective tactile system. If a uniform size system is employed, then a system of raised marks or other tactile indicators is required. Raised marks in Intaglio on the edge of the note improve the perception of the denomination.

Quality Control

The consistency of the appearance and feel, as security effects is a key factor in the security of a banknote. Inconsistencies in appearance and feel can cause problems with the manual acceptance of the banknote. Material variations can cause problems with machine recognition and acceptance. Therefore, the Central Bank should assure that an adequate quality control system is in operation to control the production of all materials as well as finished banknotes.

Public Education

The Central Bank should provide the public with the information required to be able to recognize the new banknotes and to utilize the new security features. An effective public education system utilizes a variety of media to assure a wide dispersion of information.

Coordination

Prior to the issuance of a new banknote, the Central Bank should coordinate with a number of different agencies and audiences to minimize confusion and to facilitate the smooth transition to the new design.

1. Machine Community – the manufacturers of ATMs, counting machines, and bill accepting vending type equipment require advanced information about the new notes prior to issuance to allow time for the equipment to be reprogrammed. It is recommended that these firms be provided test notes several months in advance of issuance.

2. Law enforcement – the domestic law enforcement agencies require advanced notification and training prior to the initial release of the new notes to preclude any confusion and potential lack of enforcement.

3. International Agencies – information should be provided to central banks as well as law enforcement agencies including Interpol to avoid any confusion and to maximize counterfeit identification.

4. Domestic Media – the media, including press and TV, should be provided advanced notification of the initial release and design features to take advantage of the free public education and reduce confusion.

Summary

Some of the challenges facing the issuer have already been indicated in the opening chapter of these guidelines. It has a responsibility to the public in two ways which pull in opposite directions. On the one hand, the cost of note issue must be contained; on the other, the integrity of the same note issue must be defended against the increasing and changing threats of counterfeiting.

The note issuer must adopt a holistic view of the cash cycle, in which the cost of printing notes is but one element. The Central Bank may choose to be the main driver in the cash cycle and take control of all issue and withdraw matters from design of notes to their ultimate destruction.

At the other extreme the Central Bank may choose to delegate responsibilities to others or even outsource the entire operation of the cash cycle to the extent allowed by law.

It is not for these guidelines to make recommendations as to which course any Central Bank should follow, but there are examples of the two extremes and everything in between all over the world. Whatever the choice made, Banknotes will have to be designed, substrate produced and notes printed.

Notes then have to be put into circulation, handled and sorted manually or by machine and eventually withdrawn and destroyed. Notes will need to be fit for all these purposes.

The note issuing authority will have to select the artistic material to be used in note design. The most appropriate substrate will have to be selected bearing in mind the anticipated life of the design, for there is little point in selecting a substrate with a life of six years if designs are to be changed or upgraded after three. There is certainly plenty of evidence to indicate that note issuers may wish to upgrade the security of their banknotes every two/three years.

The selection of security features appropriate to the perceived and real threat posed by counterfeiters is important and today we have to reckon with the risks not just of traditional counterfeiters and the colour copier but also the school boy with his home computer and scanner.

Note issuers may well wish to consult colleagues in other organisations to compare experiences, attend conferences pertaining to currency and/or hire a consultant with expertise in this area. IACA members have access to years of presentations at international conferences through the members‟ only e-library.

Finally, in this age of automation, banknotes are issued through ATMs, increasingly withdrawn and recycled automatically, payments are made into machines at bus and railway stations, car parks, petrol stations and many other retail points, and throughout their life notes are sorted by high speed machines into `fit‟ and „unfit`.

At each of these stages of processing, the notes must be capable of verification. For this purpose machine readable features are required, some restricted to the issuing authority and others for banking and financial institutions with yet others for use at street and retail level. The banknote thus has become a highly sophisticated document. Increased sophistication inevitably means increased cost.

On the other hand, the greater use of automation means that the additional cost can be set off against the improved efficiencies giving the issuer a much greater degree of control over the fitness of notes. The consequent improvement in quality of notes in circulation is not only a reduction in health risk and an improved image for the country concerned, but will further add to the defence against counterfeiting. It is an established fact that where notes are clean, counterfeits are more readily detected.

The objective of producing these guidelines is to establish a document introducing the tasks involved and decisions to be made by Bank Note Issuers. The document and the appendices that follow are offered for guideline purposes only, to those who have recently become responsible for Banknote Design & Issue.

We hope and trust you will find them useful. This document serves as a general guideline and is not intended to nor does it address all aspects of note design, printing, or processing.

The International Association of Currency Affairs, (IACA) and individuals involved with this project encourage the continual learning and updating of this work but do not accept any liability for mistakes, errors, omissions or any other aspect of these guidelines. Suggestions as to future improvements can be made by email to [email protected]

IACA Industry Guidelines – Appendix A Substrates

The substrates on which banknotes are produced must be durable, secure and distinctive. To meet these very demanding requirements banknotes should be produced on either cotton based security paper or a polymer substrate with specific features. The following provides details about the various security paper and polymer substrates.

The Paper-Making Processes

There are three grades of paper used for currency production. The distinction in processes can be seen in the illustration below.

PRESS SECTION

COUCH TO CYLINDER DRYERS Vacuum Bases

CYLINDER MOULD CYLINDER MOULD MACHINE

VAT

HEAD BOX FOURDRINIER MACHINE PRESS SECTION DANDY ROLL

SLICE TO CYLINDER DRYERS

Drainage Rolls Vacuum Bases

FORMING WIRE

Cylinder Mould Made Paper

In this process the paper is formed in a vat on a mould. It is a somewhat antiquated process which is limited to very few manufacturers in the world. It can offer the following security features: - a. A Multi-tonal Watermark – most usually a portrait. It is produced in the vat at the moment of the formation of the fibres into paper by floating the fibres onto a pre-formed wire mesh known as a mould cover. The fibres form in different densities to give an image in a variety of tones when the paper is viewed against the light. This image is reversed in terms of light and shade when viewed by reflective light. This permits a quick visual check of the authenticity of the watermark. Its three dimensional characteristics permit a forensic check by means of x-ray photography or the rub test, which will show a genuine cylinder mould made watermark, but not a simulation. b. An Electro-type Watermark – sometimes known as a highlight watermark. This is produced by adding an image in the form of a numeral, letter(s) or emblem to the mould cover to produce a very light image in the paper when viewed by transmitted light. It is markedly different in appearance from a cylinder mould made watermark and therefore places an additional burden on the counterfeiter if he is to attempt to simulate it. c. Security Threads – these are incorporated into the paper at the moment of its formation. The polyester-based security thread should be considered as a vehicle for a wider variety of messages both overt and covert. Whilst the traditional thread was only 0.75mm wide, today threads may be up to 4mm wide allowing the messages to be even ever more complex and thus more easily read by the public, and yet more difficult for the counterfeiter to replicate. The thread may be fully embedded or windowed. In the latter case, using the watermarking process the thread appears alternately on the surface of the paper and embedded within it. By reflected light it appears as a series of dashes on the surface of the Banknote, but when the latter is held up to the light, it appears as a continuous dark line. Security threads may be: -

i. Metallic – which, when embedded can hardly be seen by reflected light, but shows up as a dark line when viewed by transmitted light. They may also be windowed.

ii. Micro-printed in embedded form only but used less and less these days.

iii. Fluorescent – either coloured or as a supplement to most types of thread. This can offer different fluorescent colours on each side of the thread or rainbow fluorescence and a variety of different colours, the pigments of some of which are more difficult to obtain than others. Such threads may be embedded or windowed.

iv. Cleartext™ – these are metallic threads where the metal is removed to reveal a message (denomination, initials of the issuing authority, etc) which can be read when the note is held against the light. It may be embedded or windowed.

v. Colour shift – used in windowed form. Where the thread is on the surface of the note, the colour changes according to the angle of viewing. The thread should not be less than 2mm wide.

vi. Holographic – used in windowed form. When the thread is on the surface of the note, the image changes according to the angle of viewing. The thread should be at least 3mm wide for most effective viewing.

vii. Machine readable – there are a variety of such features which can be included in the thread. Since they are covert they are not described in detail here. They may however include codes which permit denominational sorting. Enquiries with papermakers and suppliers will reveal details.

Foudrinier Made Paper

This is the process used for manufacturing the vast majority of commercially available paper. For the production of currency paper, it has been modified to give high double fold test results, reflecting one aspect of strength in a Banknote paper. It can offer the following security features: - a. A Dandy Roll Watermark, in effect a two-tone watermark produced by impressing the paper after it has been produced though still extremely moist, in order to displace the fibres, leaving a residual two-tone image. b. A few paper mills with appropriate skills and technology have been able to include the traditional 1mm wide security threats embedded within the paper. c. Security fibres – coloured, fluorescent, visible and invisible. d. Planchettes. e. Tinted paper.

Crane Process

The Foudrinier process has been exclusively modified to produce a hybrid product, which allows the inclusion of watermarks which, in quality, are between the dandy roll and the cylinder mould products.

This process also permits the introduction of embedded security threads, as well as security fibres, planchettes and tinting. The Crane process can introduce into the substrate the same variety of security threads as is listed under the Cylinder Mould Paper process.

The watermark produced under this process is not as clear as that produced by the cylinder mould process due to the longer fibres used in the Foudrinier process.

The trade off is that the longer fibres provide for a stronger substrate which tends to have a longer circulation life as compared to the short fibre cylinder mould papers.

Polymer

The first non-fibrous Guardian® polymer banknote was issued in Australia in 1988. Its development was driven by high quality counterfeits of its new decimal series $10 paper note issued in 1966.

Secure polymer substrate has now been available for 20 years. Guardian® utilizes a specifically formulated and robust biaxially oriented polypropylene (BOPP), which has properties designed specifically for the specialised requirements of banknotes.

The base polymer film is transformed into press-ready substrate by the application of a number of special coatings and other non-print security applications. During the application process, a range of unique, complex and optically-variable security features are added. For example, some areas can be left uncoated or the coatings can be varied to produce the clear/complex windows and security features such as the shadow image. Such features produce different effects in reflected and transmitted light.

The coating process can also produce the appearance of security threads. In this respect the print can be fluorescent, magnetic or machine readable.

Because they are printed they can be of different shapes or patterns. Another advantage of the coating process is that it allows the production of multitonal substrates where the colour of the substrate can vary from front to back, increasing the difficulty level for counterfeiters.

Recognising the continuing growth trend of casual counterfeiting through the increasing use and availability of reprographic technology, the focus for Guardian is to create overt, easy-to-recognise features. Furthermore, these features retain their integrity for the life of the note.

The proven security, durability, cleanliness and cost-effectiveness of Guardian® has spawned a new era in banknote technology and has led to a landmark reduction in counterfeiting in Australia and many other countries, whilst also providing exceptional note life.

Guardian® polymer technology incorporates a range of security features which challenge the majority of “casual” counterfeiters.

The clear window permits:

a. Features which are optically variable seen from both sides of the note

b. The use of transmissive diffractive features capable of reconstructing a hidden image when viewed with point source light

c. The use of the principle of “self authentication”, where a feature within the window is used to verify a security feature positioned elsewhere on the note. Relevant window features can be polarising, metameric and interference filters

d. The creation of magnifying lens structures within the window

e. The creation of transitory embossed features which can be viewed in both transmission and reflection

Polymer notes are exceptionally tough, being difficult to tear and impervious to water and other liquids. The notes do not soil or go limp and are also more hygienic to handle than notes produced using traditional banknote substrates.

Aspects of Specification

Regardless of the type of substrate selected for a nation‟s banknotes, it is essential that it be unique, distinctive and secure. It must be manufactured in a secure environment and controlled during all phases of production and shipment to eliminate the potential of loss or theft. Issuing authorities need is to balance the conflicting requirements of design, security, cost and durability when specifying substrates.

Thickness is an important aspect of the final banknote and must be specified and controlled in the production of the substrate. The requisite thickness must allow a steady-state reading; otherwise it will have an effect on the feeder, on the double or multi-item detectors, and, in the case of soil detectors based on light transmittal, on the soil level readouts. Quality control at this point becomes very critical as thickness variations will affect note handling during circulation in ATM‟s and other bill handling equipment.

Genuine banknote paper is UV dull, i.e., it does not fluoresce when exposed to ultra violet light unless such feature is incorporated into the design or printing. Checking for the absence of paper fluorescence is an authentication test already widely used on used note sorting machines and in recent stand-alone authentication devices promoted for use in retail outlets.

Where the substrate under consideration is significantly different from those that have proved themselves in service, the laboratory test regime and ongoing test program should reflect the primary aim of avoiding catastrophic in-service failure.

Varnishing

Although this does not represent an alternative substrate it does offer a means by which the life of the substrate can be enhanced. In the case of polymer it is critical to varnish the notes after printing in order to ensure the adhesion of the inks to the substrate. Without the proper application of the correct varnish the inks will rapidly fall off the substrate. Varnishing has been used by some Central Banks, mainly in temperate socio-climatic conditions, to improve the soil resistance and wear characteristics of paper notes. It is now also being offered by some Commercial banknote printers. There have been studies presented at the Currency Conferences over the years on the use of Varnishing techniques. These can be retrieved from the IACA e-library by the Associations membership.

IACA Industry Guidelines – Appendix B Overt Security Features

Overt Security Features

There are a wide range of security features available to enhance the security of banknotes. Overt features are those that are either visible or tactile and are available to the general public as well as currency handlers to aide with the authentication of genuine banknotes. The following is not an all inclusive list, as new features are constantly being introduced but it provides a general overview and definition of the type of features available. These features are broken out into those that are included in the substrate, printed on the banknotes, and those affixed to the surface of the banknotes.

Substrate Based Features

Security threads

These are incorporated into the paper at the moment of its formation. The polyester-based security thread can be a vehicle for a wider variety of messages both overt and covert. Whilst the traditional thread was only 0.75mm wide, today threads can be 4mm or wider allowing the messages to be even ever more complex and thus more easily read by the public, and yet more difficult for the counterfeiter to replicate. The thread may be fully embedded or windowed.

In the case of the windowed thread, using the watermarking process the thread appears alternately on the surface of the paper and embedded within it. By reflected light it appears as a series of dashes on the surface of the Banknote, but when the latter is held up to the light, it appears as a continuous dark line. Security threads may be: -

1. Metallic – which, when embedded can hardly be seen by reflected light, but shows up as a dark line when viewed by transmitted light. They may also be windowed.

2. Micro-printed in embedded form.

3. Fluorescent – either coloured or as a supplement to most types of thread. This can offer different fluorescent colours on each side of the thread or rainbow fluorescence and a variety of different colours, the pigments of some of which are more difficult to obtain than others. Such threads may be embedded or windowed.

4. Text (either positive or negative) – these are metallic threads where the metal is removed to reveal a message (denomination, initials of the issuing authority, etc) which can be read when the note is held against the light. It may be embedded or windowed.

5. Colour shift – used in windowed form. Where the thread is on the surface of the note, the colour changes according to the angle of viewing. The thread should not be less than 2mm wide.

6. Holographic/Kineographic – used in windowed form. When the thread is on the surface of the note, the image changes according to the angle of viewing. The thread should be at least 3mm wide for most effective viewing.

7. Machine Readable Threads – a variety of machine detectable features can be added to any of the above overt threads. Threads are an excellent medium to add covert features to the banknote.

Watermarks

As discussed in the Appendix A - Substrates, watermarks are images that are produced in the paper as it is manufactured. Watermarks are not visible in reflected light and therefore do not photograph, copy or scan and thus are effective against most forms of counterfeiting. There are several types of watermarks which include.

1. Multi-tonal – high quality watermarks, normally portraits or other complex images, produced on a cylinder mould paper machine.

2. Electro-type – a watermark that provides a strong highlight, usually a denomination or other symbol. Electro-type watermarks are normally used in conjunction with a traditional multi-tonal watermark to provide a distinctive and different appearance and to enhance the security of the banknote.

3. Dandy Roller Watermark – produced on a Foudrinier machine by a stamping roller. Resultant image does not have degree of clarity found in a multi-tonal watermark but does provide a level of security and adds to the uniqueness and ability to identify the substrate.

4. Crane Process – a hybrid watermark produced on a Foudrinier machine but has many of the characteristics of a multi-tonal watermark.

5. Shadow Image – on polymer notes a shadow image can be created in the substrate coatings which provide a watermark like image when the note is viewed in transmitted light. Like watermarks, shadow images are not visible in reflected light and therefore do not copy or photograph.

Clear Window

Polymer offers the advantage of having a clear base film that can be employed to create a unique security feature. By leaving an area of the banknote substrate uncoated a clear window is created. The clear area will not copy and is difficult to simulate on paper-based counterfeits. The window can also be used as a filter or lens to create self authenticating features. Window are today also available for cotton-based paper.

Fibres/Planchettes

The inclusion of distinctive coloured fibres or coloured paper discs (planchettes) onto the substrate. These materials assist in making the substrate unique and identifiable as being for use with a specific banknote or country. In addition, they can be made to fluoresce or phosphoresce in the visible range or have up converter properties in the visible or infra-red.

Printed Features

Printed features include design and ink elements that add to the security of the banknote. They take advantage of the production materials and processes employed in the production of banknotes.

Three printing processes have traditionally been used for the production of Banknotes: off-set, intaglio, and the letterpress process. Screen printing can be added where optically variable inks are used. The principle attributes of each process are detailed below.

1. Intaglio:

This process, whereby ink is transferred direct from the recessed (engraved) area of the plate to the paper, is virtually unique to Banknote printing. It is this which ensures a barrier to entry and therefore limits Banknote printing to state owned enterprises and a handful of commercial printers.

The raised nature of the ink deposition combined with the quality of cotton based paper gives the traditional Banknote a unique tactile effect, which makes it the first and arguably the most important line of defence against the counterfeiter.

In addition Intaglio allows a refinement of structures in high opacity which cannot be successfully imitated by any known printing process. The process of design, origination and plate making further raises the threshold for the potential counterfeiter. The totality of the security in Intaglio is such that the number of counterfeits in this technology is negligible.

The raised effect of the Intaglio process also allows it to be used to assist the visually handicapped and to produce special effects where holograms and foils are over printed. In combination with off-set, it produces the various complexities of latent images.

In this feature, as the angle of viewing is altered, previously concealed images become apparent. Intaglio is still the most commonly used vehicle for optically variable inks and offers an ideal vehicle for machine-readable feature due to its unequalled resistance

2. Off-set:

This provides the background colours in specific security designs often in a rainbow effect, which makes the separation of the different colours by the counterfeiter more difficult. Patterns may also be introduced for which impede reproduction using scanners, colour copiers or desk top publishing.

Off-set presses are available which print the back and the front of the sheet simultaneously giving a perfect registration within the colors of one side and the identical perfection of the back to front registration back to front effect. This means that different elements of a design can be printed on each side of a sheet such that the whole image is only visible when the note is viewed by transmitted light. The off-set printing will often be used to carry special effect inks (florescence, IR properties, anti-stokes etc.). The efficiency of the SIMULTAN protection is largely enhanced by a design using the technology to its best possible extent.

3. Letterpress:

Whilst there is nothing unique about this process, the fact that it is used less and less in commercial printing, may yet increase it‟s importance in terms of security. It is used mainly for numbering, signatures and fluorescent printing. With the increased threat of counterfeiting, new vertical numbers as well as numbers where the individual digits vary in size within the number have been introduced. Also, unique type faces are used, all with the aim of complicating the life of the counterfeiter. It is interesting to note how frequently counterfeits can be spotted due to shortcomings in numbering.

It is not recommended to use commercial ways of individualization such as laser, ink jet electro static or other variable print due to the fact that they are commercially easily available and the investment into special font numbering boxes sets a high threshold for the investment and access for the counterfeiter.

4. Screen Printing:

This process is increasingly used as an additional printing process to allow the use of special effect inks with gross or complex pigment structure.

Whilst this adds an additional process to a printing line its advantages in ink consumption and effects outweigh the additional process. Screen printing provides for a more uniform layer of ink which provides a superior colour shift when optically variable inks are used. The current latest developments with magnetic sensitive pigments distinguish the process from the commercially available screen printing process and offer distinctive dynamic design

5. Hot Stamping:

The use of OVD in the bank note has increased over the recent years mainly to avoid easy copies in scanners and/or copiers. The reflective metallic character of these elements provides a good protection for the opportunity counterfeiter. The evolving threats from copies of the refractive content have lead to the development of a complete new class of features such that the foil is used as a carrier of several features.

OVDS are applicable in patches, stripes, registered stripes and as laminate. The latter process allows one to create window features in paper.

The process to apply foil may be done in the paper mill in web or in printing works in sheet. For optimal registration, security and economy the application in the printing works is preferable. In the print works also the flexibility in use allows to create a greater variety of features and feature combinations.

Printed Security Features

Tactility

The intaglio process provides a unique raised feel to the printed images and a character of the calendared substrate that is not obtained from other forms of printing. Counterfeit notes are often detected by feel which is attributed to a combination of the substrate and the tactility of intaglio printing.

Latent Images

The raised (embossed) affect of intaglio printing can produce an image in the print that is only seen when viewed at an angle. This image will not copy, scan, or photograph and is difficult to reproduce by any means other than intaglio printing.

Multicolor Intaglio features

Up-to-date Intaglio presses allow the application of up to 5 perfectly separated colors to create unique color registration in Intaglio. Design and Process add thus an additional threshold to the counterfeiter

Perfect Registration

Simultan Offset Printing allows a perfect registration between the plates of the recto, the verso and the recto-verso images. The variety of features is large and the most important are:

o See Through Registration The exacting front to back registration provided by the security type offset presses provides the opportunity to produce half of an image on one side of the banknote and the other half on the other side. The complete image can only be seen by holding the note in front of a light source and viewing the image through the note.

o Quasi Orlof Registration These features provide adjacent elements such as lines, forms or micro letters to create a unique appearance. These features cannot be completely reproduced nor is it feasible to print them in that registration on commercial or semi commercial Offset presses

o Orlof features A special form of SIMULTAN process allows printing multiple lines and forming features in perfect color registration with 1 dimensional and 2 dimensional Iris effects

Moiré Patterns

The use of line patterns that interfere with the scanning patterns of copiers and scanners resulting in a moiré appearing on the resultant copies

Metameric Inks

Metameric inks work on the principle of metamerism ....two colours matching under one set of lighting conditions can appear quite different under another set. The effect is useful against counterfeiting by scanning or photocopying. It can also be used whereby under normal viewing conditions nothing is apparent but when viewed under a filter a numeral or image appears. On paper substrate notes printing pairs of inks which appear as separate colors on the genuine banknote but when copied appear as the same color. On polymer based notes a filter can be printed into the window which reveals a hidden metameric image.

Optically Variable Inks

Unique characteristic colour shifting inks are printed by either intaglio or silk screen on the banknote. These inks provide a distinct colour shift pair, shifting from one colour to the other as the viewing angle is changed by tilting the banknote.

Copies and scanner reproductions can only reproduce one of the two colours and do not shift when tilted. Recent developments have shown additional security element by the use of magnetic orientation of pigment to create secure and dynamic effects.

Micro-Printing

This is the process of printing text in a font smaller than that which can be reproduced by a copier. This text can normally only be seen and read with the use of magnification. Micro print is provided in SIMULTAN Offset, Intaglio and OVDs

Surface Features

Various foil features can be applied to the surface of the banknote. These features can be applied to the substrate during manufacturing at the mill or during the printing process at the printing facility. Foils can be applied in continuous form, i.e. strips, or as localized patches.

Colour Shifting Film This is a foil attached to the surface of the banknote that provides a colour shift between two distinct colours as the note is tilted. The colour shift does not copy or scan.

Holographic Foils An image shifting effect commonly referred to as holograms, but also includes kinograms, pixelgrams, and other proprietary names. This family of features provides a three dimensional or image shift when the foil is viewed at changing angles. Foils do not copy well and often appear black on copies. However, the primary security element of these features is the changing image which is very difficult to duplicate.

IACA Industry Guidelines – Appendix C Inks

Similar to substrates, the inks used to produce banknotes must be durable and efficient. While in some cases they are similar to commercial inks, there are cases where they must also be distinctive and secure. They serve as the primary medium for communicating information such as nation of issuance and denomination. They also provide the opportunity through colour, registration and unique properties to provide both covert and overt security features to the banknote. The following provides details relative to the various types of inks and security based ink features.

Durability

The circulation life of a banknote is dependent upon both the substrate and the information printed on the substrate. Therefore, the inks must be capable of withstanding the rigors of circulation and adhere to the substrate as long as the note is expected to circulate. Ink adherence and durability should be tested through a variety of simulated circulation tests. These include:

a. Folds b. Crumples c. Chemical Soaks d. Chemical Rubs

In order to ensure the fitness for purpose for the inks, they must not only be durable, they must also be capable, amongst others, of the following characteristics:

a. Suitable for use in perfect back to front register to ensure the public see-through feature; b. Inactinic to assist in the identification of numbers even after notes are charred; c. Provide the raised printing effect of intaglio; d. Have the ability to provide the latent image public recognition feature; e. Have fluorescence either of an invisible nature or incorporated into a visible colour, preferably using a pigment which is not readily available from commercial sources;

f. Some inks may be pearlescent with changing appearance according to the angle of viewing in order to protect against colour copying, scanning and desk top publishing however attention should be paid to use security dedicated pigments only.

g. Provide the ability to have magnetic, infrared and other properties for machine detection; h. Provide unique qualities which can be verified by forensic examination.

Efficiency

The importance of constant quality in the performance of the printing ink is paramount in producing secure and efficient banknotes. Each banknote must appear as the exact same colour to the user to provide a level of recognition and security.

The ink materials and characteristics must also be consistent to provide for machine recognition and authentication. Therefore, great care should be taken to test and evaluate inks prior to press to assure consistency and to avoid detection equipment failures in the field.

The consistency of ink is an important factor in the efficiency and therefore the cost of producing banknotes.

Inks for offset, intaglio, screen printing, and letter press must function consistently and reliably on a day to day basis to provide for the high volume, high quality production of a nation‟s currency.

A thorough process control and in-line inspection in all printing and manufacturing processes provide not only a higher quality and security standard but also contribute to the economic and efficient production of bank notes. Security

Banknote inks can provide both overt and covert (machine detection) security features.

a. Overt Features:

i. Colour – the use of close registered colours and combination of colours provide a level of security.

ii. Metamerics – the use of colour pairs which appear the same to the naked eye but appear distinctive when copied, or viewed under different lighting conditions.

iii. Optically Variable Inks – inks that contain thin-film pigments that change colour when viewed from different angles. These inks can be printed by either the intaglio or screen methods and they produce a distinctive colour travel between designated colour pairs.

iv. Magnetic Pigmented Optically Variable Inks – the inclusion of magnetic properties which provides for the orientation of the pigments and creating unique, distinctive and dynamic optical effects within the printed area of the banknote.

b. Security Inks for Automated Detection:

Inks which may be recognized through their optical properties: These have been split into categories which use absorption characteristics or emission characteristics.

Those in the first category function like filters which modify or disturb the spectra of incidental light. The detector will register this modification in the reflected light.

i. Inks detected through their absorption profile:

This category is the most widely used in the field. Absorption in the infrared (IR) portion of the electromagnetic spectrum: absorption characteristics in the wave length portion invisible to the human eye are often used for detection and give additional significance.

A certain number of materials having specific absorption characteristics may be measured in the infra red. The printing of a couple of inks presenting the same colour in the visible but having totally different absorption characteristics in the near IR usually enables a simplification of the task of detection and increases selectivity.

However widely available printing equipment and software allows colour differentiation and reproduction of legacy IR pair. In a response, sophisticated non-toxic materials may be used for the formulation of bright colours having non-monotone and specific absorption characteristics in the IR leading to unique high selectivity and significance.

This characteristic can be termed a covert feature as it can be easily detected by machines, but not by criminal elements, nor is it picked up by any colour copying device. Photochromatic inks: the absorption profile of this type of ink is modified through stimulation under long wave ultraviolet light. Unfortunately, the chemical stability and light resistance of the photochromatic materials is limited which excludes their utilization for currency printing.

ii. Inks detected through luminescence emission characteristics:

This category is also covered under the term of luminescent inks. One may distinguish between fluorescent inks which emit only as long as the stimulating light source is on, and phosphorescent inks which continue to emit over a certain time after the light source has been switched off. The stimulation of these chemicals occurs in the UV, visible or IR region. Emission in a specific manner may take place in the visible or in the IR.

Classic fluorescent inks which absorb the UV and re-emit in the visible range have been used for currency recognition for many years. Simple portable devices such as UV lamps are used.

Because of its limited chemical and light resistance, it is not often used in machine detection because of the varied signal strength resulting from the time the banknote was in circulation.

Special treatment of this category of pigments and their combination with highly resistant ink matrices for screen, offset and intaglio printing has led to the creation of much improved inks for automated detection. Despite the fact that none of them are dedicated for security, it is recommended to use phosphorescent inks instead of fluorescent inks as they are less widely available. Moreover bi-phosphorescent inks increase security value by emission of different colours at different wavelengths excitation.

iii. Magnetic Inks:

In context of the automated detection of banknotes, magnetics are also extremely useful materials. The detection principle is a polarization of the print in a given magnetic field and the measurement of the induced magnetic field strength arising from the ink.

The pigments used may vary in their coercivity (magnetic field necessary for polarization) and remanence (magnetic field strength obtained through polarization). In chemical terms, iron oxides and barium, cobalt or strontium ferrites may serve the purpose.

It is also worth mentioning that magnetic materials with non- remanent characteristics are now available which allow the formulation of stronger and brighter colours. The zero- remanent materials (super paramagnetic) do not cause too much colour shift but because of their characteristics, it is required to have large concentrations to have enough signal to detect them.

Fluorescent Ink

Primary Use: Public authentication Measurement: Presence or absence, colour, excitation wavelength Automation Impact: Presence or absence forms a pattern; sometimes interferes with simple fluorescent paper detectors. Automation Tolerances: Light sensitivity of detector; light filter range; broad band versus narrow band; filter ranges - blue/green, green/yellow/orange/red; roller belts and O-rings interference; cannot be read through note; four-way orientation. Production Tolerances: Requires two detectors if both sides printed. Production Longevity of print; amount or type of ink. Consideration: Circulation Impact: Easy public awareness but easily counterfeited. Wear prone feature. Heavily soiled notes are very difficult to read as they do not retain ink well. Prone to deterioration under certain daylight exposure conditions. Minimum Detection 3mm x 3mm block (check with manufacturer if Criteria: pattern is smaller). Other Uses: Could be used for denomination if each one has distinct pattern, but high rejection due to soil is possible. Current Technology: Presence/absence. Fluorescence of both visible and invisible image. Emerging Technology: Specific wavelength. Degree of Security: Medium. A low cost feature which could cause the counterfeiter some difficulty; especially when difficult pigments are used. Note Life Impact: Secondary Supplier Special colours require care. Impact: Interaction With Other Can be combined with normal colour features. Features: Central Bank Good second level feature. Considerations: Commercial Bank Could be used for third party authentication. Considerations: Most Common Fluorescent materials are readily available. Counterfeiting Nevertheless, the counterfeiter is driven into Method(s): specialized technology. Recommendations: Dual-side patterns are suggested for four-way reading. Use rarer pigments.

Magnetic Ink

Primary Use: Covert authentication Measurement: Magnetic flux Automation Impact: Simplistic: usually presence or absence of feature makes a pattern. Complex: measure of coercitivity, concentration, type of magnetic ink. Automation Tolerances: Sensitivity of detector, location of detector, number of “channels”. Rollers, belts and O-rings can interfere -- check locations. *Can be read “through” note, etc., depending on concentration of ink and detector. *Good for four-way orientation applications. Production Tolerances: Width of area should be a minimum of .635mm to 1mm to enable reading on note. Production Control of batch to batch inputs. Variation in ink Consideration: application levels can lead to false readings in complex systems. Printing Tolerances: Location tolerances Cost Consideration: Cost of ink versus type: dual or full note scan detector if on multiple locations across note. Circulation Impact: Simplistic yes/no presence/absence is an expensive commercial authentication feature. Excessive ink wear can lead to false readings in some complex systems. Minimum Detection Send samples to sorter or detector manufacturer, Criteria: dependent on detector sensitivity. Other Uses: Possible denomination discriminator based on location, pattern or concentration if it is unique. Current Technology: Including head detector, MR sensors, adran ind heads. Moderately complex system is being used in Federal Reserve Banks. Recommendations: *Photocopies could use black magnetic toner -- colour magnetic toners are rare but becoming more common. *Control over physical properties provides extra check. *Having varying magnetics (one serial number magnetic/one without) is extra defence. *Unique patterns per denomination are recommended.

Phosphorescent Ink

Primary Use: Public/covert authentication Measurement: Decay presence or absence; decay amount. Automation Impact: Simplistic: presence or absence of feature usually makes a pattern. Complex: measure of decay, concentration, colour, type (could be detected as fluorescence as well). Automation Tolerances: Light sensitivity of detector, light filter range (broad band versus narrow band), filter ranges (blue/green, green, yellow, orange, red), roller belts and O-rings can interfere - check manufacturer‟s locations. Cannot be read through note, four-way orientation requires both sides printed to dual detectors unless plastic substrate is used. Circulation Impact: Better than fluorescence as it is more difficult to counterfeit. Does exhibit wear as usually is “top applied ink.” If in small amounts/physical size is sometimes difficult to read. The life of this feature under certain daylight exposure conditions may be reduced. Minimum Detection 3mm x 3mm block (check with manufacturer if Criteria: smaller). Other Uses: Good for denomination if each one has distinct pattern or decay. Current Technology: Bar coding, presence measuring. Emerging Technology: Decay measuring Acceptance Testing Ink concentration, note wear. Impact: Degree of Security: Medium, more than fluorescence. Note Life Impact: Can be used as an indication of soiling Secondary Supplier Same colour, concentration required. Impact: Interaction With Other Minimal Features: Central Bank Good for second level after fluorescence. Considerations: Commercial Bank Fluorescence feature most commonly used. Considerations: Most Common Fluorescent pens. Counterfeiting Method Recommendations: Suggest pick one colour or two colours. Use phosphorescence rather than fluorescence for greatly added protection with some designs and colour consideration. Test for wear.

Infrared Ink

Primary Use: Covert authentication Measurement: Presence or absence, amplitude not seen or seen; infrared absorbent reflectant under infrared light absorption profile or peaks Automation Impact: Usually presence or absence of feature makes a pattern. Good if same colour could be part absorbent/ part reflectant to make counterfeiting difficult now available in light and bright colours for enhanced security value Automation Tolerances: Rollers, belts, O-rings can interfere -- check manufacturer‟s locations. Cannot be read through note unless plastic substrate is used. Pattern should be on both sides and top and bottom to allow for four-way orientation. Circulation Impact: Affected little by wear. If counterfeiting becomes a major problem, could be advertised to large commercial accounts. Other Uses: Very good feature to use for denomination differentiation. Current Technology: Presence/absence. Can be coded. Emerging Technology: Specific wavelength. Acceptance Testing Easy automatic measurement. Impact: Degree of Security: Medium. A low cost feature which requires a special detector. Note Life Impact: Well chosen designs and inks have no impact on note life. Central Bank Good second level feature. Considerations: Commercial Bank Could be used for third party authentication. Considerations: Most Common Generally ignored by the counterfeiter. Counterfeiting Method(s): Recommendations: Vary pattern according to denomination. Put some patterns half and half (e.g., one serial number absorbent, one serial number reflective). Pay special attention to design differentiation on four-way orientation. Effective lower cost feature.

Intaglio Ink

Description: Other Common Names: Raised ink, copper plate, direct plate (DP), recess. Primary Use: Public authentication, gives notes their unique feel. Measurement: Depth, height Automation Impact: Heavily soiled notes experience a wearing down of intaglio. Detection exists in a localized environment with good quality used notes. Heavy concentrated intaglio can be mistaken by some detection techniques as small tape. Automation Tolerances: Dependent upon detection technique. Circulation Impact: Wears down with time and usage. Minimum Detection Height of intaglio over a 3mm x 3mm minimum area. Criteria: Other Uses: Used to create more prominent design features on a banknote and also for an artistic effect. OVI and latent images. Current Technology: Can be magnetic, fluorescent (UV) and infrared (IR) detectable. Improved tonal impact by combining inks with design. Emerging Technology: Control of ink transfer requires careful control of all press/ink parameters. Combination by overprinting with surface-applied features. Degree of Security: High. However, depends on engraving depths and ink characteristics. Note Life Impact: Improves note life through intaglio calendaring effect Secondary Supplier Intaglio ink specifications are complex and important Impact: parameters are not always specified. Interaction With Other Can be combined with other features (e.g., infrared, Features: magnetics). Central Bank A mainly overt security feature. Considerations: Commercial Bank Could be used for third party authentication. Considerations: Most Common The Litho process is the most commonly used Counterfeiting counterfeiting process, although in some countries Method(s): colour copies predominate. Increasingly desktop publishing is used.

IACA Industry Guidelines – Appendix D Designing Currency for Automation

Overt Authentication

Features that can be seen with either the naked eye, or with rather simple equipment, are visible features. Holograms, Pixelgrams, Intaglio print of portraits, latent images etc., Window features, See through Registration, Optically variable devices are in this category. The use of intaglio printing and micro-printing can be easily seen with a little help from a magnifying glass. Special paper, watermarks, and multicolour inks are also well known and easy to recognize features.

Self-authenticating notes

Self-authenticating banknotes also fit into this category. These are notes which provide, on the note itself, the simple tools required to check certain features elsewhere on the note.

The ranges of features of this type are those which require a change in the angle of viewing by transmitted light thus a simple and speedy means of authentication. Such features include threads in the paper, latent images, optically variable inks, perfect see-through register and holograms and other surface applied features.

Also, a magnifying lens in the clear window of a polymer note can be used to magnify and read intaglio micro-printing. A note could contain two polarized clear windows which, when overlapped, extinguish or allow transmitted light depending on the alignment angle of the two windows. Alternatively, moiré or metameric screens in a clear window could be used to visually filter out a concealed printed feature.

Covert Authentication

Covert security features are generally included in banknotes to aid in subsequent machine authentication. Such features are designed to be undetectable without an appropriate sensing device. Their inclusion in a note allows the issuing authority, or a supplier of cash verification service, to determine with a high degree of certainty that a note is genuine.

Covert authentication systems fall into a number of categories which are linked to the ease with which the feature can be found, analyzed and duplicated or simulated by a determined counterfeiter. Those which are most common in modern banknotes actually fall into the low to medium level category. These include:

 magnetic inks  fluorescent inks or fibres  phosphorescent inks or fibres  infra-red absorbing or reflecting inks

Where ultimate note security is of primary consideration, the issuing authority may well include a high level authentication system (HLAS) in the note. Such systems are protected by extreme secrecy and are often based on:

 complex, specially engineered taggants which are used in very low concentrations  taggants which are stable during the life of the note  taggants which are used under conditions where even the most sophisticated counterfeiter finds it impossible to detect and simulate  a complex, custom-made detection system, which is easy to integrate with presently used note sorting machines

There are a few systems which presently satisfy all these criteria, they include:

 the special magnetic pigment inks  ink based taggant systems  substrate taggant systems

Effect of Note Design on Machine Processing

Changing Banknote Design and Location of Security Features

A machine must denominate the banknote before it can verify its authenticity. Changes in the series design usually result in the change of the banknote image and overt features.

The overall design change and changes to overt feature affect the covert features like magnetics, optical or spectral response features. Some of them disappear or change location and size. New features are added. These changes could create different requirements for machine denomination and authentication.

An introduction of a new feature may cause a “relocation” of the older one. The detector location has to be changed. However, if the old feature must be detected in old series of notes, an old detector must remain in place. This is the well known “backward compatibility" detection issue.

The human eye can appreciate the beauty of the banknote and the smooth gradual changes in the colour and design. Detectors (like most machines) prefer bimodal/digital information. Even as most detectors are analogue devices, the whole detection and signal processing system operates primarily in a digital domain.

A distinct change in the signal intensity, with well defined, sharp transitions of large signal amplitude is preferred. A distinct colour or high contrast colour changes are preferred over gradual transition such as rainbow printing.

Large, well defined features, properly oriented, that allow taking advantage of a detector‟s maximum sensitivity are preferred. A feature suitable for the detector speed, response time, resolution and technology is always appreciated by the banknote processing community.

The most suitable security feature would be a group of high contrast blocks perpendicular to each of the possible banknote transport direction. It will address the issues of banknote processing direction and satisfy both types of machines. It will also address the detector performance requirement and maximize the signal to noise ratio.

Banknote transport direction

There are two directions for processing banknotes: long edge first or short edge first. The high performance, high end systems are processing notes short edge first.

Most of vending machines and simple desktop or hand held systems are transporting the banknotes short edge first. Most of commercial desktop systems are transporting banknotes short edge first. Some of the systems process banknotes in one orientation only (example face up or face down). Other types have to process notes in all possible orientations.

A feature consisting of a simple bar or group of bars aligned along a short edge of the note would be relatively easy to detect when the note is moving along the long edge. A single point detector would be sufficient to identify the location and security code of the feature.

However, the same feature will present a considerable problem for machine transporting notes in the short edge direction. Even a more expensive, single element, wide detector would not be able to detect either presence or the exact location of the feature.

A complex array of detectors or four narrower detectors located in precise positions of the bar for all note orientations would be required. Alternately, an intermittent bar would create a problem for code detection for the long edge processing. A short edge processing would be considerably easier.

A feature consisting of a simple bar, a group of bars or intermittent bar aligned along a long edge of the note would perform much better for short edge transport systems.

Will there be a design to satisfy both processing directions? An intuitively obvious solution from visual point of view design would be a bar or group of bars at 45 degree to any of the edges. A “single point” detector would do the job assuming desired sensitivity is available.

Detectors, regardless of whether they are optical, magnetic or other, respond well to the edge of the pattern perpendicular to the motion direction and parallel to the width of the detector since the detector integrates (adds) signals from all points along its width.

Feature size and shape

The shape and the size of the feature could have a significant impact on a detector‟s ability to detect it at acceptable Signal-to-Noise (SNR) ratio. There is a strong correlation between the direction of the banknote motion and the shape of the feature.

Recommendations

There are two somewhat opposing view of what would constitute a good banknote design. Banknote designer and central bank are focusing on creating a small piece of art evoking artistic feelings from the viewer but at the same time conveying the sense of value, economic stability and confidence.

A banknote processor or the machine would prefer a document easy to denominate and authenticate in a very short time with a high degree of reliability regardless of the banknote transport direction.

The main differences in the two points of view are summarized in the table below.

Designer/Printer Machine Authentication “Piece of art” , smooth, gradual Distinct colours for transitions, pastel colours, fine denominations, high details, similar colours for all contrast, sharp colour denominations transition Suitable for the detector Pleasing to the eye, beautiful, speed, resolution, conveying security, stability and technology, direction of pride banknote processing Large feature, intermittent Security feature part of the pattern, symmetric location, “image”, blended in, small ability to reliably read in details, not affecting aesthetics both directions

New series – new overt and Backward compatibility of covert features the banknote processing

Physical Sorting Machine Limitations

It is well known that the condition of notes returned from circulation do not have consistent characteristics, and for this reason, a system which is flexible and capable of providing the required adjustments is best. In addition to a well-designed system, it is very important that operational procedures for adjusting various parameters, and for monitoring their performance, must be established.

In order to provide an operational environment which maximizes productivity in the most cost-effective manner, the system should also provide the operator with monitoring capability and easy access and control over the various functions and parameters.

1. Rejection Factors

Rejects are caused by a number of factors--those that are purposefully rejected and those that occur as a result of the transport system or by the various detectors or readers with which the system is equipped. In order to avoid count errors, mis-sorts, or jams, certain systems are designed to reject notes rather than cause the problems stated.

A number of detectors are purposefully biased to reject notes rather than make a false decision. If the detectors are based on average readings instead of a specific value signal, an increase in the numbers of rejects is often observed. False rejection is also a large drawback of certain detectors.

Poorly designed notes if combined with faulty operational procedures and inflexible systems, can cause a very high reject rate. The following reasons will eventually cause rejects:

 all types of folds and dog ears hiding “authentication”;  missing corners / pieces;  extreme soiling or non-transparent scotch tapes (double suspect);  multiple items;  deviations of normal transport position (skew);  irregularities in banknote production and/or design

Rejects should fall into the following categories:

a. “Feeder” rejects (e.g., skew, close feeds, doubles) are expected to be higher on ragged notes and less on good notes.

b. Detector unknown faults (timing) and header/separator card rejects are normally not significant.

c. Length and height rejects are normally directly dependent upon the tolerance agreed by the Printing works and the Central Bank. With parameters set to the “normal” production tolerances, these rejects would be dependent only on the number of “partial” notes actually received. This is an “actual” or true reject and one that should be examined.

d. Denomination rejects are dependent on the number of factors one wishes to take into account in determining the denomination:

i. These could involve the optical pattern, size, authentication positioning on a note if it is different for each denomination, coded thread, etc.

ii. Denomination rejects are also dependent on how different is the design of two banknotes, and on how concerned one is with “crossover” (one denomination being called another which is never totally eliminated).

iii. Optical denomination and size rejects are obviously effected by production errors, excessive folds, holes, etc., so there is some choice as to how one reports a “reject” here.

iv. Denomination is also broken-down to “unknown” and “wrong”, which is further differentiated into which “wrong” note was recognized; i.e., a £10 for a £20, so as to accurately identify the denomination “reject”.

e. Excessive corner rejects or excessive tape rejects (for composite notes) are usually under user-parameter control and are highly dependent on note conditions. With pre- conditioning, this should be minimal, but are “actual” or “true” rejects.

f. “Unknown” rejects are a catch-all “other” category which is expected to be very low. Any note in this category needs examination to ensure that it is known what caused the reject and that the parameters are changed to ensure it is classified the next time.

g. Authentication rejects are dependent on note condition, design, and production, as well as the customer‟s trade-off to determine acceptable levels.

Recommendations

A well designed feeding and transporting system which is based on specific note characteristics, is critical for minimizing reject notes, as is the development of various detectors and readers.

While the first automated systems designed to handle notes were based on the existing note design and printing, today we see more specific characteristics being incorporated into or onto the notes, thereby making detection and/or reading of such characteristics more precise and thus minimizing the frequency and/or rate of rejects.

Changes in the design of currency notes must begin by incorporating state-of-the-art technology for the automation of currency handling

2. Crossovers

Crossovers are notes whose denominations are not recognized and are sorted as an incorrect denomination. Most often this occurs when all denominations are of the same size and their designs contain many similar features which “confuse” the detectors.

To avoid crossovers when all denominations are of the same size, their design must be distinct from one another, or they must contain specific and easily detectable features which distinguish their denominations. Crossovers of denominations whose sizes are different in height and length do not occur very often unless there are problems with the detectors.

3. Note Destruction Issues

Premature Note Destruction

Other than a system software problem or a combination of software control and mechanical malfunction, the major cause for premature destructions is a faulty soil detector. An unstable soil detector, or one whose parameters are incorrectly set, can cause a considerable number of notes to be prematurely destroyed.

Changes in background colour of the paper can have a significant impact on the soil detector. Failure to notice and/or to incorporate such changes in properly adjusting the soil levels of the detector will cause devastating results in the performance of the soil detector. It is not uncommon to see drifts of two to three soil levels and more downwards toward the unfit criteria because of the instability of detectors that have not been properly designed.

And finally, premature destruction could also occur from dust accumulation; as most detectors are based on light reflectance or transmittal, and dust causes a reduction in the receiving signal. Consequently, the accumulation of dust can cause shifting of levels downwards, i.e., towards the unfit criteria. Furthermore, depending on the design of the soil detector, this may have a cumulative effect resulting in higher premature note destruction rates. Much of the dust is magnetic and will accumulate where magnetic fields are large if care is not taken.

Recommendations for Premature Note Destruction

To eliminate or minimize premature destruction, it is necessary to provide a reference point of level measurements based on the background colour of the paper used for printing notes and to test the soil detectors for their stability against such reference periodically.

Testing of such detectors should not only be done during system acceptance, but should become a part of operational procedures and must be performed periodically to ensure proper adjustments and stability. Cleaning the light source or signal receivers should also become part of the daily routine or maintenance of the system.

Throughout this process, caution must also be exercised so that low quality notes are not recirculated. If the system is well designed and properly maintained, this problem can be minimized. The manufacturers of substrates must provide a consistent colour which is used as the standard.

4. Shredding and Granulating

The primary purpose of shredding and/or granulating is to eliminate the chance of reconstitution of a whole note, and secondarily, to reduce the volume for disposal.

On-line shredding and granulating completely eliminates the need to handle off-line, unfit notes and provides tremendous cost savings as it eliminates all the old methods of punching, cutting and disposing of unfit notes manually. The maximum size of shredding should be 1/16 inch or 3mm, and if these are crosscut then their volume is further reduces. Similarly, granulators should also provide for destruction of notes to sizes of no larger than 16mm in diameter.

Disposal -- Compacting, Incineration, Landfill, Recycling

Broadly speaking, there are four ways of reducing and disposing of waste:  Prevention  Recycling  Incineration  Dumping

The most effective way of reducing waste is obviously by prevention. The production process can be made cleaner and more efficient by improving production equipment, improving the working methods of personnel, and improving the quality of virgin materials and additives

Waste can also be reduced by prolonging the product life cycle. For example, by coating banknotes we may extend their life cycle by approximately 30%. This makes one of every three generations of banknotes superfluous. Adding a durable natural fibre such as abaca to cotton can also extends the life of banknotes by about 30% and this is done by the Philippines and Japan.

Another example from the banking world is the replacement of paper by plastic notes. This revolutionary development has been introduced in Australia and it has succeeded in increasing the life cycle.

In the context of recycling, the introduction of polymer-based notes is a significant step because the opportunities for its re-use are extremely promising. Ways are also being found for recycling cotton based banknotes.

Incineration is a form of re-use which produces only energy. In order to prevent harmful emissions into the atmosphere, incineration is subject to strict regulation. This requires substantial investment in flue gas cleaning equipment. It is used less and less these days.

Dumping in landfills does not recover any energy and cannot be said to serve any useful purpose whatsoever. More than any other waste form several criteria must be borne in mind when selecting a method for disintegrating currency. These are: security, technical, economical, and environmental issues.

Recycling Polymer Notes: Polymer notes can be recycled. The used notes are granulated, then extruded and pelletised at high temperature. This process melts the polymer and inks and mixes them in a homogenous blend. These pellets are used in injection moulding to make such items as compost bins, flower pots and plumbing supplies.

Recycling Cotton Notes: When the cash centre printing plant and paper mill are close by it has been possible to recycle notes back into paper. Recycled notes have been used as novelty paper. Work has shown that recycled banknote paper can be put on the land.

5. Strappers/ Banders

With the automation of currency handling, the strapping of notes becomes an important element of this process for a number of reasons which are outlined below:

 Variety of strappers by each manufacturer of note handling systems.  Strapping material used such as plastic based and paper.  Width of strapping material.  Position of strap on the notes.  Printing information on each strap.

6. Fitness Sorting

Fitness sorting by automated currency handling systems consists of two basic areas of inspection.

One is the physical characteristics which have deteriorated or altered, and the other is soiling. Today‟s fitness detectors are capable of sorting notes as unfit on the basis of a number of parameters, such as dog-ears or folded corners, holes, tear, tape, or missing parts, and soiling at various levels. All of the above parameters are adjustable by operators at management‟s discretion.

Fitness sorting is a very important element of used note handling as it contributes to cost effectiveness of this function. One must make the proper adjustments in order to avoid premature note destruction or re-circulating notes which should have been destroyed.

The existing adjustments on today‟s fitness detectors are such that they allow a field engineer to make the changes for various parameters or these can be input by an operator. Soil detection can be set for various levels by operators on the basis of notes to be recirculated or destroyed.

Soiling is clearly of great importance in determining the durability of a banknote. This has been demonstrated by the performance of polymer notes and the introduction of coated papers and varnished notes.

IACA Industry Guidelines – Appendix E Printing Methodology

The production of banknotes utilizes one or more of the following printing methodologies. The use of two or more of these techniques in combination is the norm due to the increase in security provided by using multiple techniques.

Intaglio

This technique is found on virtually all banknotes around the world due to its security, strictly limited availability, high quality, and tactile result. Basically, intaglio involves printing directly from an engraved plate to the substrate under high pressure which results in a raised and therefore tactile image, often referred to as “the feel of steel”. Intaglio images are distinctive due to the clarity of line reproduction, opacity as well as the three dimensional character. It is commonly used for the primary image on a banknote such as a portrait, building or animal printed in a dark colour.

Modern intaglio presses have the capability of printing up to four colours. The multi-colour capability is obtained by selectively inking the plate. This inking can be done either directly from chablon rollers or indirectly from a blanket. Multi-colour intaglio presses are available in both high speed sheet fed and web configurations.

The raised effect of the process also allows it to be used to assist the visually handicapped and to produce special effects where holograms and foils are over printed. In combination with off-set, it produces the various complexities of latent images. In this feature, as the angle of viewing is altered, previously concealed images become apparent. Intaglio is still the most commonly used vehicle for optically variable inks.

Intaglio also allows one to integrate all other security features and materials by sealing them with the substrate.

Offset

Offset (lithography) is used on banknotes to print multicolour backgrounds and also often to print the images on the reverse of the banknote. Offset is an indirect printing technology where the image is printed from the plate to a blanket and then transferred to the paper. It is very good at creating multicolour tints and intricate colour patterns.

Offset presses are available and commonly used in security printing that print both the front and back of the banknote at the same time.

This provides the opportunity to have exact registration between the images on both sides of the banknote. This unique ability has led to the use of “see through features” where part of an image is printed on each side and is only complete when viewed through the banknote.

Offset presses are available in sheet fed and web configurations, although the exact front to back registration feature is available in sheet fed presses only.

Letterpress

Letterpress is a direct printing technique where the image is produced from a raised plate coming in direct contact with the paper. In its crudest form, it is a rubber stamp where only the image is inked and then stamped on the paper. In banknote printing, it is commonly used to print serial numbers and seals, etc.

The printing of serial numbers can be an exacting part of the production process of a banknote. Serial numbers are normally controlled and unique to each banknote. This precision is provided by numbering boxes attached to the press which must change numbers with each subsequent print. Modern numbering boxes are either mechanical, which index up or down by one digit each print, or motorized, which allow for the box to configure to any potential next number after each print. Choice of numbering boxes is driven by the serial numbering sequence desired in the finished banknote packages.

Letterpress numbering units can be installed on web presses; however, the majority of banknotes are numbered on sheet fed letter press equipment.

Screen Printing

Screen printing (silk screen) is a direct printing method commonly used in the production of items such as tee shirts and posters. It has been introduced into the banknote production process due to its ability to produce a uniform relatively thick layer of ink to the document while optimising ink consumption. This is a perfect combination of advantages when printing with optically variable and iridescent inks which work best when applied in a thick and uniform layer.

High speed sheet-fed screen presses are now available to the banknote printing industry. This equipment now has the ability to produce unique effects within the images printed on each note.

Hot Stamping:

The use of OVD in the bank note has increased over the recent years mainly to avoid easy copies in scanners and/or copiers. The reflective metallic character of these elements provides a good protection against the opportunity counterfeiter. The evolving threats from copies of the refractive content have lead to the development of a complete new class of features such that the foil is used as a carrier of several features.

OVDS are applicable in patches, stripes, registered stripes and as laminate. The latter process allows creating window features in paper.

Web-fed and sheet fed printing for banknotes

All substrates, whether paper or polymer, are produced in continuous lengths (or „webs‟) which are wound onto reels. The printer may decide to receive the substrate from the manufacturer either as a web of an agreed width on a reel, or cut to sheets of an agreed size; the choice will depend on the press the printer uses.

Which kind of press, web or sheet, the printer wants to use depends on the ´characteristics´ of the banknotes he prints and his production location.

Depending on these characteristics, there are arguments in support of both options.

 Web printing is generally faster and the substrate is cheaper as the supplier does not have to bear the cost of sheeting. On the other hand the waste in the production of the banknotes (i.e. not the waste at the paper manufacturing plant) is lower for sheet- fed production.  Sheet-fed presses however are seen as more complex as the sheets must be fed one by one into the press and removed in the same way, but they are more versatile as an infinite range of sheet sizes in both width and length can be used (with a minimum and maximum sheet size specified for the press).  The Sheet fed process decouples the different printing processes of the ever more complex modern bank notes. This allows the printer to chose the sequence of printing according to the optimum for each product. Each process can be independently optimized for speed and quality.  A web press can take in web of varying width but circumference of the cylinder carrying the image to be printed is somewhat limited. On the current web intaglio presses, the fixed circumference of the cylinder must be selected when the press is ordered and cannot be changed when the design or the product is changed.  A sheet fed press can take paper of various sizes with a certain range. A sheet-fed press takes in a sheet and locates it relative to the leading edge and one side; so a job can be printed through the various units of a banknote printing line with all the prints in register because they all refer to the edge of the paper.  On a web press, the lateral position of the substrate can be set by reference to the web edge. Longitudinal register between the several print units within the machine can be achieved by fractional adjustment of the web path length between units. Achieving register between an already printed web and a second printing is achieved by camera technology installed in the machine.  On web-fed presses it is necessary to dry the ink immediately before winding the paper in order to avoid set-off. This requires hot air, IR or a UV dryer. Hot air and IR dryers will affect paper moisture. UV drying requires special inks. The biggest concern may be Intaglio. The thickness of the ink must be limited to obtain a complete drying so that tactility is significantly reduced. The printer must also be absolutely sure that all ink is polymerized and that there is no remaining monomers in the final product that will be used in direct contact with the skin of the users.

The preparation of printing form is also different when it comes to intaglio. Sheet fed machines use plates and the web machines use engraved cylinders. After applying the various printing and non-printing technologies, the final banknotes (in sheets or in a web) will go to finishing, where the banknotes will be quality checked and bundled to be stored at the Central Bank‟s facilities.

Those who prefer web printing claim the advantages are:

 the high production speeds and the quick production throughput (in sheet fed printing all the different technologies are applied in separate stations with drying time and intermediate storage , in web-fed all technologies are applied in one path).  the lower investment for the printing system  the reduced workforce needed for running the press

Those who prefer sheet fed printing claim the advantages are:

 the high productivity  all possible printing processes for bank note printing are available in sheet-fed technology. They can be added progressively.  the printer is free to select the process sequence.  less design limitation. The printer can vary freely the note size (often varies with denomination)  drying of the different processes is not mandatory, reducing the loss of humidity and subsequent dimension changes of the material.  the printer is free to select any kind of ink  production of the finished products in numerical sequence is provided, which is impossible in a pure web process  each process is optimized independently for spoilage, quality and productivity.  low spoilage of expensive materials  flexible print works operation, in 1 , 2 or 3 shifts, whilst web machine must be run continuously if one wants to limit waste rate to a reasonable level, (the web machine consumes several 100 meters of paper

More than 98% of all bank note production world wide is currently printed on sheet fed printing presses.

IACA Industry Guidelines – Appendix F

Plate Making Methodology

Sketch design

The task of the designer when developing a new banknote design is to create an artistic fusion between aesthetics and security. The designer‟s objective is to make maximum use of all the possibilities offered by the various banknote printing processes so as to obtain the most constant and the highest quality print results.

Portrait and vignette engraving

A digitising tablet is used with a pressure sensitive pen, together with standard software and specific tools to ease the engraver's work. The portrait automatically structured in multiple layers which can be easily modified.

This method is flexible and produces the best artistic results because the engraver is in control, the pen being very close to the cutting tool used in hand engraving.

Origination

The design security system not only offers a wide range of design modules to create security designs with an infinite number of security elements but also allows executing the entire design and assembly process on the same platform.

This is enhanced by a range of user friendly work tools giving the designer greater control and accuracy.

The process philosophy enables to design, assemble, manage and output a security document from end to end in one fluid and integrated workflow. This ensures greater flexibility in design and allows ultimate control over document quality, integrity and security at all stages in the process.

Offset plate making

Platesetter is a „Computer to High-Security Dry & Wet Offset Plate‟ Laser- based thermal exposure system for high security offset plates as well as thermal ablative films. It is especially designed for banknote printers,

Platesetter has a resolution of 10,160 dpi which not only improves the quality of all offset security patterns but is crucial to the generation of the most effective ones: vignettes, slowly-varying tonality anti-scan patterns, frequency-modulated anti-scan patterns.

Repeatability and stability have been maximised to achieve the perfect registration required by banknotes. The registration system has been designed and optimised for the Simultan machines clamping system, permitting a quick set-up time and optimal overall printing registration.

In addition to the dry and wet offset plates, the platesetter can expose thermal ablative films. These films are used for the production of intaglio polychablons plates and screen printing meshes.

Intaglio Plate making

Computer to Intaglio Plate

The engraving or plate-making system employs extremely precise laser technology to engrave the physical master plate. The engraving system has a resolution of 8‟000 dpi. The technology is based on a fusion between the digital design system, advanced polymer plate technology and a unique laser engraving device to provide a seamless workflow from designer to printer.

Once the design is created, a blank polymer plate is loaded into the laser unit and the engraving process begins. The depth, width and the profile of every line is controlled by the processor and external factors such as compensation of sheet deformation that occurs during the print process can be introduced.

When the master plate is complete it is introduced to the standard galvanic plate reproduction process to create the first nickel alto. This „master‟ printing plate must be perfect since all subsequent printing plates will be copied from it. It is therefore introduced to the polishing system to ensure a clean and flawless plate surface before being re-introduced to the galvanic process for the generation of intaglio printing plates.

Computer to Intaglio “Brass” Plate

The direct engraving system is a laser-based computer-to-brass-plate machine especially designed for intaglio security printing on the i-con printing machine. The engraving system has a resolution of 2‟540 dpi. The system accelerates the pre-press workflow while increasing the stability of the process. In addition it allows a flexible production process, short production time, fast error correction, and few production steps.

Making intaglio printing plates

Intaglio printing plates today are made from a polymer which has already been engraved by laser (see the preceding section). The special constraints associated with intaglio printing require the use of a material which prevents a "laminating" effect when printing and which is also flexible enough not to break when pressure is applied during printing or at the clamping points. The material must also be resistant to corrosive attack. Due to its mechanical properties, nickel has proved to be the material best suited to these different constraints.

Platemaking operations

1. Making a Counter Matrix

The engraved polymer is cleaned carefully to remove any remnants generated by the laser engraving and is then meticulously checked. In order to be able to deposit a metal electrolytically onto a plastic surface, the plastic surface must first be made conductive to electric current. Once sensitised, a thin layer of silver is applied by electrochemical spray.

This layer must be sufficiently fine (less than 1) to ensure that the finest details in the engraving are reproduced exactly. The polymer is inserted into a contact frame which is then placed in an electrolytic nickel solution. This operation, which is commonly known as "nickel plating", consists of converting the metallic nickel originating from the anode into nickel ions which make up the main part of the electrolyte. These ions then discharge at the cathode (that is to say at the silvered polymer) by reconstituting a metallic layer.

The nickel counter matrix made in this way is then separated from the polymer, carefully cleaned once again, and then meticulously checked. This counter matrix also referred to as a "nickel alto" or "nickel master" will be used to make all the printing plates, guaranteeing optimal reproduction. 2. Making a Printing Plate

Once polished, the counter matrix is passivated to make it possible to separate one metal from the other and is inserted into a contact frame

again and placed in the nickel electrolyte. It takes about 14 hours for a layer of around 1 mm to be deposited.

Once separated, the counter matrix is rinsed and is ready again to reproduce another plate. As for the raw plate, it still has to be finished and prepared for its future use.

3. Finishing the Plates

As the electrolytic deposit is a faithful reproduction of the engraving, the back of the plate is not regular and smooth enough for the plate to be fitted directly onto the plate cylinder of the printing machine. The back of each plate must first be ground to a given thickness. It is essential that the plate thickness is precise, as three identical plates have to be fitted on the same plate cylinder.

Once the plate has been cut to its final format, the technical properties of the material are analysed. The print surface of the plate is polished, then carefully scrutinised one last time.

To increase the resistance of the surface when it comes into abrasive contact with inks, certain papers and wiping, a final layer of around 10 of chrome is deposited on the print surface of the plate. In the final finishing operation, the plate is bent and precise holes are perforated in it, so that it can be clamped into position on the machine.

IACA Industry Guidelines – Appendix G

Glossary of Terms used in Security Printing

Absorption In the substrate, this is the property which causes it to take up liquids or vapours in contact with it. In optics, this is the partial suppression of light through a transparent or translucent material.

Accordion fold In binding, a term used for two or more parallel folds which open like an accordion

Additive Colour The colour that results when colour of light is added to another, such as by projection onto a white screen.

Additive Primaries In colour reproduction, red, green and blue (RGB). When lights of these colours are added together, they produce the sensation of white light

A/D Conversion An analogue-to-digital converter (ADC, A/D or A to D) is an electronic integrated circuit, which converts continuous, analogue signals to discrete digital numbers.

Adhesive coated paper Paper that is coated on one side with an adhesive that is either activated by moisture (gummed papers) or heat. It may also be covered with a pressure-sensitive adhesive coating that is permanently tacky at normal temperature and adheres to a surface by contact and applied pressure.

Against the grain Folding or feeding paper at right angles to the grain direction of the paper.

Alto A metal reproduction of an engraving which is a positive (readable) with the printed areas in relief. An alto is a three-dimensional mirror image of an engraving. An alto is used to make plates.

Airbrush In artwork, a small pressure gun shaped like a pencil that sprays water colour pigment. Used to correct and obtain tone or graduated tone effects. In plate making used with abrasive-like pumice to remove spots or other unwanted areas. In electronic imaging a retouching technique. Aliasing See Moiré Pattern

Alkaline paper Paper made with a synthetic size and an alkaline filter calcium carbonate that gives the paper over four times the left of acid sized papers.

AM (Amplitude Modulation) Halftone screening, as opposed to FM screening, has dots of variable size with equal spacing between dot centres (see halftone).

Analogue Colour Proof Off press colour proof made from separation films

Anilox Inking In flexography, two roll inking system with a smooth fountain roll that transfers ink to an etched metal or ceramic coated metal roll with cells of fixed size and depth that transfer the ink to the plate.

Anisotropy Anisotropy is the property of being directionally dependent. It can be defined as a difference in a physical property for the material when measured along different axes.

Anti-Aliasing In digital image processing, anti-aliasing is the technique of minimizing the distortion artefacts known as aliasing when representing a high- resolution image at a lower resolution. In the image domain, aliasing artefacts can appear as wavy lines or bands, or moiré patterns, or popping, strobing, or as unwanted sparkling.

Anti-counterfeiting Coating An overall coating on the substrate which makes duplication or copying difficult.

Anti-halation backing In photography, coating applied to back of film to prevent halation.

Anti-scuff spray In printing, dry or liquid spray used on press to prevent wet ink from transferring from the top of one sheet to the bottom of the next sheet.

Anti Skinning agent. Ink additive that prevents the ink from forming a skin, or rubbery layer, once it is exposed to air. Also called an antioxidant

Apochromatic In photography, colour-corrected lenses that focus the three colours, blue, green and red, in the same place.

APR (Automatic Picture Replacement) The replacement of low resolution images by a high resolution images.

Art All illustration copy used in preparing a job for printing

Ascender The position of a lowercase character that extends above the height of its main body. Some examples are seen on the following characteristics: "h", "k, "b" and "d".

ASCll (American Standard Code for Information Interchange) A standard means of representing text as numerical data.

Authentication Authentication (from Greek) is the act of establishing or confirming banknote or secure document as authentic, that is, that the banknote or secure document has been examined and claims can be made about the document are true. Authenticating an object may mean confirming its provenance. Authentication depends upon one or more authentication factors.

Automatic Processor In photography, a machine to automatically develop, fix, wash and dry exposed photographic file. In plate making, a machine to develop, rinse, gum and dry printing plates.

Automatic Recognition System A machine or system checking the authentication of the banknote or document

Backbone The back of a bound book connecting the two covers; also called spine

Backup A copy of work or information saved in case the original is lost or damage.

Backing Up Printing the reverse side of a sheet already printed on one side.

Bad Break In composition, starting a page or ending a paragraph with a single word, or window.

Banknote A banknote, (often called bill or note) is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender.

Bearers In process, the flat surfaces or rings at the ends of cylinders of a printing press that come in contact with each other during printing and serve as a basis for determining packing thickness.

Bezier curve The description of a character, symbol or graphic by its outline used by drawing programs to define shapes

Bimetal plate In lithography, a plate used for long runs in which the printing image base is usually copper and the non-printing area is aluminium, stainless steel, or chromium:

Birefringence Birefringence, or double refraction, is the decomposition of a ray of light into two rays (the ordinary ray and the extraordinary ray) when it passes through certain types of material. This effect can occur only if the structure of the material is anisotropic (see anisotropy). If the material is uniaxial (has a single axis of anisotropy or optical axis) birefringence can be formalized by assigning two different refractive indices to the material for different polarizations.

Bit In computers, the basic unit or digital information, contraction of Binary digit

Bit Map In computer imaging, the electronic representation of a page, indicating the position of every possible spot (zero or one).

Black and White Originals or reproductions in single colour, as distinguished from multicolour. Abbreviation B/W

Black Printer In colour reproduction, the black plate, made to increase contrast of dark tones and make them neutral.

Black Light See Ultraviolet

Blanket In offset printing, a rubber-surfaced fabric that is clamped around a cylinder to which the image is transferred from the plate, and from which it is transferred to the paper.

Blanket Printing The additional printing on the back of a sheet. This occurs when the printing plates comes in contact with the impression cylinder blanket that carries substrate through the printing station. Upon direct contact, ink from the plate is deposited on the impression cylinder blanket. This impression will be offset on the obverse side of the next sheet of substrate passing through the press.

Bleed In printing, when the printed image extends past the cut edge

Bleaching Bleach is a chemical that removes colour or whitens.

Bleeding In printing it is mixing of two dissimilar colours in two adjacent printed dots before they dry and absorb in substrate.

Blind Embossing Design which is stamped without metallic leaf or ink, giving a bas-relief effect

Blocking Sticking together or cementing of adjacent sheets or notes occurs when sheets are stacked one on top of the other immediately after printing.

Blow up Photographic enlargement

Blueprint In offset lithography and photoengraving, a photo-print made from stripped up negatives or positives, used as a proof to check position or image elements.

Board Break (Board Indenture) A running break, caused by an impression board which has either cracked due to wear, or has developed an indenture due to foreign matter having been pressed into it. Body In ink making, a term referring to the viscosity or consistency, of an ink (e.g. an ink with too much body is stiff).

Bronzing Printing with a sizing ink, then applying bronze powder while still wet to produce a metallic lustre.

Bulk The degree of thickness of substrate

Byte In computers, a unit of digital information, equivalent to one character or 8 to 32 bits.

CAD (Computer-Aided Design or Drafting) In graphics, the production of drawings and plans for architecture and engineering systems are specialized workstations or high-performance personal computers that employ CAD software packages and input devices such as graphic tablets and scanners.

Calendar (Calendaring) To compress by rolling between two cylinders at high pressure. It decreases thickness and increases smoothness or gloss of surface

Calibration Comparison of two instruments or measuring devices, one of which is a standard of known accuracy traceable to national standards, to detect, correlate, report, or eliminate by adjustment any discrepancy in accuracy of the instrument or measuring device being compared with the standards.

Caliper The thickness of a sheet of paper expressed in thousandths of an inch

Camera ready Copy which is ready for photography

CCD (charge coupled devices) "CCD" is commonly used as a synonym for a type of image sensor. Strictly speaking, "CCD" refers solely to the way that the image signal is read out from the chip. A charge-coupled device (CCD) is an analogue shift register, enabling analogue signals (electric charges) to be transported through successive stages (capacitors) controlled by a clock signal.

Charge Transfer (CT) A colour producing mechanism in which the absorption of light produces the movement of one or more electrons from one atom in an ion to another.

Chemoluminescence Chemiluminescence (sometimes "chemoluminescence") is the emission of light (luminescence) with limited emission of heat as the result of a chemical reaction.

Chromaticity Diagram A three-dimensional array containing all the colours that can be perceived. A simplified two-dimensional section is usually known as the "colour triangle".

Chromophore Colour forming element

CIE Commission Internationale de I'Eclairage. (International Commission on Illumination)

Coating Coating and printing processes involve the application of a thin film of material to a substrate, such as roll of paper. Cocked Number One digit in the serial number is printed higher or lower than the others.

Collimated Light Light with all of the rays going in exactly the same direction; parallel light rays (do not spread apart as they move away from their source).

Colour The perception in the eye brain system produced by a non-white distribution of Electromagnetic energy

Colour Consistency The uniformity of colour through the production run of the banknotes. This limits any variations that will be seen by the public and provides security as counterfeits may be identified through small differences in appearance.

Colour Copies Copies of banknotes made on full colour photocopying equipment.

Colours outside the reproduction colour space of the Euroscale Colours that cannot be reproduced by four colour printing in the colours cyan (greenish blue), magenta (bluish red), yellow and black.

Colour Shifting Inks See Optically Variable Inks

Colour Triangle A colour triangle is an arrangement of colours within a triangle, based on the additive combination of three primary colours at its corners.

Commemorative Note A note commemorating a significant historical event or famous person

Complementary Colour Pair In colour theory, two discrete colours opposite one another on the colour chart, such as blue and orange or red and green (additive theory).

Copy Any duplicate of a banknote produced by a non-legitimate means.

Covert Feature A security feature that is not visually or tacitly detected by the public that requires the use of a detector to recognize the feature. This is normally placed on banknotes for use of third party equipment such as vending and/or central bank verification equipment.

Counterfeit The reproduction of a document, article or security feature with the intent to deceive the close scrutiny of a qualified examiner

Currency A currency is a unit of exchange, facilitating the transfer of goods and/or services. In common usage, currency sometimes refers to only paper money, as in coins and currency. Coins and paper money are both forms of currency.

Covert Features Security features that are hidden in the banknote and are not intended to be made public. Used by the Central Bank for currency authentication and by law enforcement for forensic purposes.

Cracked Chrome (plate) A fuzzy horizontal line of ink usually at the top of a sheet spreading inward toward the centre. This type of defect is the result of a fissure or break in the plate itself.

Cyan (Blue) One of four basic process ink colours used in full colour printing

Dalmar Unit on the Superintaglio machines used to regulate/control temperatures of the rollers and cylinders.

Daylight Fluorescent Inks Some pigments are designed to glow under normal daylight ("Day-Glo" colours - bright orange, yellow and green are the most common) - the pigment in fluorescent pens is Day-Glo.

Defect, Running A printing imperfection affecting a number of consecutive sheets, but so localised to a small portion of the sheet that most of the sheet can be processed into one note form

Defect Any non-conformance of characteristic with specified requirements

Defective A unit of product which contains one or more defects

Definitive Stamp The regular postage stamps procured on a continuing basis by the public for use as postage.

DeLaRue Press Sheet fed, paper wipe press (circa 1950's).

Density Density and dense usually refer to a measure of how much of some entity is within a fixed amount of other space.

Destouche A trademark for a patented transfer machine that performs the siderography process semi-automatically on hollow copper sleeves

Die The original hand engraved master.

Die Stamping An intaglio process for the production of letterheads, cards, etc. Printed from lettering or other designs engraved into copper or steel

Diffractive Foils Please see foils

Diffraction Grating (or Optically Variable Device (OVD) Made up of a series of very fine embossed lines which diffract light and create colour shifts when viewed at different angles

Distinctive Paper A paper containing a distinguishing characteristic such as the inclusion of coloured fibres or planchettes (small coloured discs), usually in a unique combination, available only to specific users

Downtime The time that a press or process is unavailable to production

Dot Offest printing utilizes individual dots of ink similar to pixels to depict an image. The dots are produced by utilizing a screen that breaks the image into a series of small dots.

Dpi Dots per inch

Drop-Out Creating an image in print by printing ink around it and leaving the image in substrate, usually white lettering with a darker-coloured background.

Drying In The drying of printing ink within the etchings of an intaglio-engraved plate on the press so that new ink added to a plate is wiped off as excess ink, and consequently is not transferred or imprinted on paper.

Dry Offset Printing An indirect printing process in which a relief plate prints onto a blanket, which in turn transfers the image onto the paper without the use of water (also see Wet Offset Printing).

Electrolytic A processor for reproducing a three-dimensional image by causing nickel to deposit on an original when negative charge is applied. The processes used to make altos and intaglio printing plates.

Electro photography An electrostatic image-forming process in which light, x-rays, or gamma rays form an electrostatic image on a pre-charged, photo conductive, insulating medium. The charged image areas attract and hold a fine powder called a toner and the powder image is then transferred to paper and fused there by heat.

Electrostatics The study of electric at rest, their fields and potentials

Embossed The raised effect produced by intaglio printing. The paper is forced into the engraved lines in the plate producing a raised tactile image that can be detected by touch.

Embedded Features Security features that are added during the papermaking process or inserted between laminated layers. They include threads, planchettes, fibres, micro-taggants, microcapsules and other devices.

Engrave The creation of an image by hand cutting or etching a vignette (picture) or lettering into metal

Enhanced Fibres Fibres that respond to ultraviolet, infrared or other excitations to give identifiable reactions and are added to paper as a security feature

Equipment Availability The total time (in hours) that equipment is available for production.

Equipment Utilization Percent of time that equipment is in production relative to equipment availability

Error Type I False rejection errors do not recognize an authentic item as being authentic

Error Type II False acceptance errors accept a non-genuine item as if it were the real thing

Evaluation Matrix Two dimensional listing of properties, results, or both, etc, used to compare and evaluate data.

Extender Any non-pigmented dry additive used for bodying and cheapening in ink.

FA False acceptance; incorrectly accepting an inaccurate or non-genuine item or fact as if it were real; also called Type II error

Fibres Usually referred to as coloured fibres. Embedded in paper, at the time of manufacturing to provide a visual distinguishing or distinctive characteristic

Filled in Serial Number A number is filled in and becomes disfigured.

Fitness The quality of a circulated banknote. Banknotes that are considered “fit” are recirculated, those deemed “unfit” are destroyed.

Flexography A printing technology that utizies rubber mats which have the image as a raised area (similar to a rubber stamp) to print the image. Normally high speed web presses are used and is considered a good method for high volume low cost reproductions.

Fluorescence Luminescence that has a lifetime of about 10-8 to 10-4 seconds following removal of the excitation energy source. Because of this extremely short lifetime, fluorescence is often considered to be a luminescence which ceases immediately the excitation energy source is extinguished.

FM (Frequency Modulation) screening A means of digital screening. See stochastic screening.

Foil Stamping The process of transferring a thin foil to a banknote from a carrier. This may be achieved by using heat to activate an adhesive or by "cold" transfer (stamping)

Foils - Reflecting Foils A security feature for banknotes. Visible to the naked eye, metal foils can be deposited by (hot or cold) transfer onto a banknote. A colour photocopier or scanner will usually reproduce these metal areas in black.

Diffractive Foils - metal coated foils with colour image changing effects. Co-extruded Foils - Multi-coloured iridescent foils which are produced by co extrusion, i.e. by forming (under heat and pressure) a thin thermoplastic film consisting of several foil layers.

Foils with Multi-layer Stack - By staking several layers of thin film on a foil, a defined colour is achieved. This colour changes depending on the viewing angle.

Four Colour Reproduction A print produced utilizing the commercial offset colour reproduction system based on the combination of yellow, magenta, cyan and black to produce the final image.

FR See "Error Type 1 ".

Gravure A method of printing using the intaglio process, that is, the ink is placed in cells below the plate or cylinder surface.

Guilloches Traditional elements of a banknote design comprising regular patterns of lines, which are produced by special machines or on a computer.

Halation In photography, a blurred effect, resembling a halo, usually occurring in highlight areas or around bright objects.

Halftone The reproduction of continuous-tone images, through a screening process, which converts the image into dots of various sizes and equal spacing between centres

Hickies A doughnut-shaped ink spot on the paper that is a result of paper dust or other small pieces of matter being present in the inking roller system

Hologram A structure that transmits or reflects light so a three-dimensional image can be seen. This image appears to move as the viewing orientation is changed.

Holo-magnetic Stripe A metallic holographic foil applied in a stripe on the banknote that in addition to having an optically variable image contains a machine detectable magnetic property.

Hot Stamping A process in which stripes, foils or other features are applied to the surface of the substrate using heat

Image The visual affect of a design.

IMP (Intermittent Magnetic Pattern) Contains an invisible code, printed in magnetic ink, which can be used to authenticate and/or denominate banknotes in sorting machines.

IMT (Intermittent Magnetic Thread) Is a security thread which contains an invisible code, printed in magnetic ink, which can be used to authenticate and/or denominate banknotes in sorting machines

Infrared Electromagnetic energy beyond the red end of the visible spectrum, that is with wavelengths longer than 700nm. May be perceived as heat by the skin

Infrared Inks Inks containing dyes or pigments that absorb in wavelengths from 700 to 1100nm.

Ink Jet Printing A non-impact printing technique that uses electrostatic acceleration and deflection of ink particles emerging from a nozzle to form characters on plain paper

Ink Problem A range of defects including staining, wiping, setoffs and blocking that affect the production of a job.

Ink Spot A blot of ink that may be located anywhere on a sheet

Inseparable Colours Colours that are visibly different but cannot be easily separated for producing counterfeits using conventional photographic techniques

Inspection The examination and testing of supplies and services (including, when appropriate, raw materials, components and intermediate assemblies) to determine whether they conform to specified requirements

Intaglio A method of printing in which the ink is transferred from engraved lines on a cylinder or plate under tremendous pressure to the substrate.

Interference The constructive reinforcement or destructive cancellation when two beams of light interact

Iodine Number A measure of the unsaturation of oils and fatty acids

Iridescence Those interference colours that show a change of colour with orientation and are metallic-like in that they have a high reflectivity, as in multiple- layer interference filters on camera lenses

Iridescent Inks With multi-coloured iridescent effect the iridescent colour changes in different angles of light, i.e. when the banknote is tilted.

ISARD The Intaglio Scanning Recognition Device is an optical detection system capable of determining the presence of intaglio printing on a banknote.

Kinegram A security feature on banknotes which is similar to a hologram, and in which the image has a well-defined movement. The image changes depending on the viewing angle (also see OVD).

Laminate(s) A sheet of material made of one or more bonded layers.

Laser engraving Engraving produced by utilizing a laser to etch the image into the copper or steal as opposed to a hand cut image.

Latent Image An image engraved into an area of a document which is not evident unless the document is viewed at an oblique angle. If the engraving is rotated 90 degrees in the same plane, the colour of the latent image will appear to reverse polarity, that is, the dark images on light backgrounds will become light images on dark backgrounds.

Letter Press Printing Characters are formed by raised surfaces on the printing plate; a roller applies ink to these raised surfaces and the plate is pressed against the paper to transfer the ink.

Lithography A printing technology (offset) that is based on the image being transferred from a plate to a blanket prior to being transferred to the substrate. Commonly used in security to produce multi-clour background tints.

Liquid Crystal Inks Inks which appear to colour change in different temperatures or under different pressure (also see Thermo chromic pigments / inks).

Luminescence Luminescence is a production of light when a substance is non-thermally activated, for instance by ultraviolet energy.

Lustre Effect Pigments Pigments that shine in a way similar to pearl; lustre-effect inks are available in various colours, e.g. with metallic effects or in colours that change depending on the viewing angle.

Machine Readability The ability of a feature to be recognized for authentication or denomination by a machine detector.

M-feature An invisible, machine-readable feature made of compounds containing "rare earth" element (oxides of certain metals found in a few rare minerals). Used for banknote authentication purposes.

Magenta (Red) One of four basic ink colours used in full colour printing. Other colours are cyan (blue), yellow and black.

Magnetic Printing Non-impact printing in which the ink contains particles that control the printing process

Mash Fuzzy edges usually in concentrated ink areas around titles and numbers. This type of defect is due to excessive ink on plate.

Master Plate A large, flat copper or nickel plate with copies of the engraving located properly for printing. It is used to make altos.

Medallion Ruling (printing) An offset image that is created by tracing lines over a three dimensional sculpture on a geometric lathe. The direction and proximity of the lines creates a three dimensional effect that is very distinctive. It is normally printed in two or more colours that are difficult to separate mechanically.

Metallic Inks Colours with aluminium or bronze (copper/tin alloy) components displaying a typical metallic shine; metallic inks are available in the colours of silver and copper, various shades of gold and other pigmented colours.

Metameric Inks A combination of two inks which look identical under daylight and different under artificial light, so-called conditionally identical inks. Often used as two colours that looks identical but is different when photocopied or vice versa.

Metamerism Metameric inks work on the principle of metamerism ....two colours matching under one set of lighting conditions can appear quite different under another set.

Microcapsules Small particles, not visible to the eye that are added to substrate and which respond to ultraviolet, infrared or other excitations to give identifiable reactions.

Micro lettering Test that can only be read with the aid of a magnifying glass and cannot be reproduced by most colour copiers or other reproduction systems, thus enabling counterfeits to be more readily identified.

Micron Metric System, the millionth part of a metre

Micro printing Printing so small that it is not reproduced with a low dpi capability; usually only visible 'with magnification

Moiré A new pattern formed by the super positioning of two patterns whose periodicities are not identical [see also Aliasing] This may also be described as an irregular wavy finish or an independent shimmering pattern seen when two geometrically regular patters (as two sets of parallel lines or two halftones screens are superimposed, especially at an acute angle).

Multi-Diffraction Grating Diffraction grating that produces a shift in the pattern seen on changing the viewing angle.

Nip Point The contact location where a printing cylinder plate and impression roller make contact with the paper between them. This is where the impression is made.

NIR Light Near infra-red light; light not visible to the human eye and having a wavelength slightly longer than visible light.

Non Impact Printer A line printer in which the characters are produced electrically, electro- optically, or optically, rather than mechanically

Numbering The serial numbering system applied to a series of banknotes.

Offset (wet) An indirect printing process. Image areas are photo printed onto a metal plate that has been chemically sensitized to accept ink and repel ink. The ink image is then transferred from the plate onto a rubber blanket cylinder, then onto the substrate.

Oil Spot An opaque discolouring of the paper

Opacity Non-transparency to light

Optically Variable Device (OVD) An Optically Variable Device: the generic term for any device whose appearance varies with changes in the viewing angle, e.g. holograms, kinegrams, pixelgrams, OVI, foils with multi-layer thin film stack and diffractive foils. Also defined as any feature that uses the colour-shifting (optically variable) effect.

Optically Variable Pigment Pigment portion of a colour shifting (optically variable) ink

Optically Variable Inks Inks that contain thin-film interference filter pigments that produce an reflection that changes colour as the viewing angle is changed Also known as "colour shifting" inks.

Optical Thin Film(s) A colour shifting security feature based on the vacuum deposition of various elements onto a film which provides for a dramatic colour shift when viewed from different angles.

Overprinting The addition of release dates, specimens, etc to the face of currency notes.

Overt Feature A security feature that is visible or apparent without requiring special instruments. It may require some instruction on how to observe it. The feature may be particularly visible on the genuine note (a passive visible feature) or may only show after a copy has been made.

Pantone Proprietary name of a widely used colour matching system

Paper One substrate used in printing currency, usually based on cotton and linen fibres rather than cellulose as in ordinary paper.

Paper Sizing The process by which a gelatinous solution is used in glazing paper to increase its surface strength and its resistance to the penetration of liquids

Paper Spot A discolouration in the paper which occurs during the manufacture of the paper

Paper Wipe Ink An ink that requires a blotter type substance to remove excess ink from an engraved plate prior to an impression

Pane A quarter of one printed sheet of postage stamps. The format in which sheet stamps are sold by the Postal Services

Pantograph A sophisticated tracing machine that uses a system of levers to make copies of the item being traced on a smaller or larger scale

Patch (foil patch) A piece of reflecting foil (possibly displaying an OVD) with a defined shape applied onto the banknote, usually exactly positioned (registered) in both horizontal and vertical directions (compared to a stripe running through the whole height of a banknote). Percent Defective The percent defective of any given quantity of units of product is one hundred times the number of defective units of product contained therein divided by the total number of units of product, i.e.: Percent Defective = Number of Defective x 100 Number of units inspected

Perfecting Press A printing press that prints both sides of the paper in one pass. pH A measure of the acidity or alkalinity of material or solution

Philatelic Stock Printed stamp selected as the best quality for use by the philatelic community.

Philatelist A collector of stamps

Phosphorescence Phosphorescence is a type of luminescence that has a lifetime of about 10 nanoseconds following removal of the excitation energy source.

Photo chromic Inks Inks containing dyes or pigments that change colour when exposed to ultraviolet or very intense visible light. They subsequently revert to their original colour.

Photoluminescence Luminescence produced by exposure to ultraviolet.

Picking The lifting of the paper surface during printing. It occurs when the pulling force (tack) of ink is greater than the surface strength of paper.

Pixelgrams A special type of surface-relief, computer-generated diffractive optical element based on a discrete-pixel (picture element) addressing scheme.

Planchettes Small discs, embedded in paper at the time of manufacturing to provide a distinguishing or distinctive characteristic. They may be visible, fluorescent, iridescent, IR, etc.

Plate Cylinder The press cylinder to which the printing plates are attached on a sheet- fed press

Polymer Substrate A biaxially oriented polypropylene based substrate used in lieu of paper on which banknotes are printed, said to be extremely robust and extremely durable.

Quality The composite of all the attributes or characteristics, including performance, of an item or product

Quality Assurance A planned and systematic pattern of all actions necessary to provide adequate confidence that the item or product conforms to established technical requirements

Quality Control (QC) A management function whereby control of quality of raw or produced material is exercised for the purpose of preventing production of defective material.

Rainbow Printing A type of printing usually used in the offset print of a banknote, in which the plate is inked with two or more "bands" of colour which gradually blend into each other creating a multi-colour effect on the print.

Ream A quantity of paper/substrate consisting of 500 sheets

Reduced Inks An ink specially prepared to reduce the colour intensity of a proofing ink.

Reflectance Inks Ink that has a particular brilliance or the capacity to reflect light. In counterfeit deterrence an ink whose reflectance properties would interfere with colour simulation.

Reflecting Foils See Foils

Retro Reflective A method of imparting sequential numbers by the use of jet printing techniques. Several coloured inks are deposited onto the paper in a controlled manner to form a line pattern design in such a fashion to yield a readable serial number which is the white of the paper. The number corresponds to a visible number printer elsewhere on a note.

Rigging Packing The material used to cover the impression cylinder in intaglio printing. The material has some compression and resiliency to allow substrate to be printed as it passes between the impression cylinder and printing plate.

Rheology A science dealing with the deformation and flow of matter

Roll A cylinder of soft steel that is pressed by rolling under pressure into a hard steel die. After hardening, the image picked up by the roll can be transferred into soft steel to make multiple copies.

Safety Paper A specifically treated paper which is sensitive to chemical eradicators or bleach, etc, so that it discolours, thus indicating it has been altered.

Saponification Number A measure of alkali reactive groups in oils and fatty acids

Scanner Any device that examines an area or region point by point in a continuous systematic manner, repeatedly sweeping across until the entire area of the region is covered; an example is a flying spot scanner.

Screen Traps See Moiré Patterns

Security Fibres Small individual read and blue fibres embedded in currency paper at the time of manufacture to provide a distinguishing characteristic.

Security Thread A thin substrate of "plastic" normally running vertically through the banknotes which can be printed or coated with different inks or metals (e.g. aluminium). By removing parts of the metallic layer (demetalisation), various pictures, letters and figures can be produced, that can be seen when the banknote is held against the light. Threads can be fully embedded in the paper or appear on the surface of one side of the banknote in predefined areas (windowed or stardust thread). Security threads can also have magnetic properties e.g. they can be magnetically coded (intermittent magnetic thread - IMT).

Security Tint A repetitive fine line offset image made up of two or more Colour switch are difficult to separate mechanically. Colours are normally chosen which do not duplicate well on colour copying machines.

Set Off When the ink of a printed sheet rubs off or marks the next sheet as it is being delivered.

Sheet Flair The spread of a sheet on the bottom caused by the printing impression. As paper sheets are processed in a press, the paper is compressed and fans out at the bottom. The result can be faulty registration when printing on sheets.

Sheeting The practice of cutting out whole sheets from a reel or web of substrate

Silk Screen Printing A printing process where free-flowing ink is applied to the paper through the unblocked areas of a metal or fibre screen

Sizing The treatment of paper which gives it resistance to the penetration of liquids (particularly water) or vapours

Slitting The practice of reducing the width of a web or reel of substrate or producing several narrower reels

Special Issue Stamps Stamps issued for an unspecified duration that may be issued more than once, e.g. Christmas stamps.

Specification A document which clearly and accurately describes the essential and technical requirements for items, materials, or services, including the procedures by which it will be determined that the requirements have been met. Specification for items and materials may also contain preservation, packaging, packing and marking requirements.

Spoils Product or material outside the specified range i.e. faulty

Staining Incomplete final polishing of the printing plate immediately prior to the impression being made will result in a slight tint in the non-image area.

Star Note A note inserted in the place of a defective overprinted note.

Stochastic screening A digital screening process that converts images into very small dots (14- 40 microns) of equal size and variable spacing. Second order screened images have variable size dots and variable spacing. Also called Frequency Modulated (FM) screening

Substrate The medium on which currency is printed. It may be paper, plastic or a laminated combination

Tack The force necessary to split an ink layer

Telescoped Roll A roll of substrate in which there is loose winding throughout the roll allowing the film to slide sideways

Thermochromic Pigments/Inks Inks the colour of which changes depending on the temperature e.g. liquid crystal inks

Thermal-Transfer Printing Technique in which heat transfers a dye or a coloured wax from a ribbon onto paper

Thin Film Interference Filters (TFIF) Multiple layer structures that produce colour effects by interference.

Thin Film Security Device (TFSD) A type of optically variable method of deterring counterfeiting…. Made by vacuum depositing very thin (light wave length thickness) layers or inorganic material onto a plastic substrate carrier.

Three See Security Thread

Transparency An image fixed on a clear base by means of a photographic, printing, chemical, or other process, especially adaptable for viewing by transmitted light (Optics). The ability of a substance to transmit light of certain wavelengths

Trimming The practice of cutting all four sides of a printed note sheet

Ultraviolet Electromagnetic energy beyond the violet end of the visible spectrum, that is with wavelength less than 400nm. Also called black light. May produce tanning of the skin and injury to the eyes

Variable Sized Dot Printing with a combination of large and small halftone dots; the larger dots would be above the patterns resolution limit of scanner or copier, while the small dots would be below it. The larger dots would be printed in a pattern, such as one spelling "VOID", which would stand out on the copy, since the smaller dots would not be resolved.

Varnish An ingredient in printing inks that helps to impart pigmentation.

Vignette A picture that shades off gradually into the surrounding unprinted paper…. An image in the window of a polymer note

Watermark A localised modification of the structure and opacity of a sheet of paper so that the pattern or design can be seen when the sheet is held to the light. A security feature on banknotes. Watermarks are made during the production of paper by varying the thickness of the paper. When held against the light, the ''thick'' parts appear dark and the ''thin'' parts appear light. Watermarks can appear either in a specific place on a banknote ("registered watermark" or in continuous repetitions ("continuous watermark"). A multi-tonal (portrait) watermark contains fine transitions from dark to light areas.

There are four main types of watermark:

 Cylinder mould - watermark is made by undulating the screen on which the paper is formed, producing an image with thinner and thicker areas of paper.  Fourdrinier watermark is produced by pressing a die (a "dandy roll") into the paper just after it is formed.  An electrotype watermark is produced by soldering a wire or metal plate on the screen that forms the paper thus causing picture elements that are particularly translucent.  A bar watermark is composed of several parallel light and dark bars in the paper and contains a simple machine readable code.

Web A roll of substrate used in web or rotary printing.

Wet offset Printing An indirect lithographic printing process where a flat printing plate prints onto a rubber blanket that transfers the image onto the paper. The printing plate must be moistened with water before it is inked.

Wipe The cleaning of engraved plates during the printing process by PVC coated cylinder. In intaglio printing the plates are wiped clean, residue ink resides in the engravings on the plate.

IACA Industry Guidelines – Appendix H

Glossary of Terms used in Security Printing

Trademarked and Brand named Features

Two-dimensional iris image 2D-Iris KBA-GIORI S.A (Offset)

CombiFluo/ Additive-colour fluorescent TriFluo KBA-GIORI S.A image (Offset)

CTiP KBA-GIORI S.A Computer to Intaglio Plate

CToP KBA-GIORI S.A Computer to Offset Plate

CutPak KBA-GIORI S.A Finishing machine Securency GOLDswitch International Pty Ltd Metallic Patch

Securency Dynamic Optical Colour G-switch International Pty Ltd Switch

Securency IRIswitch International Pty Ltd Iridescent Feature

JetCode KBA-GIORI S.A Inkjet (invisible) marking

LVI KBA-GIORI S.A Litho Variable Image (Offset)

Securency Optical Machine Readable MAGread International Pty Ltd Security Thread

MVI KBA-GIORI S.A Multi Variable Image (Offset, Silk-Screen and Dry Embossing) Nota Check KBA-GIORI S.A Quality inspection equipment

Nota Protector KBA-GIORI S.A Varnishing machine

Nota Screen KBA-GIORI S.A Silk-screen printing press

NotaMark KBA-GIORI S.A Laser-engraved feature A complete suite of products from digital design to One KBA-GIORI S.A printing plate origination

Foil stamping/laminating Opti Nota H KBA-GIORI S.A press

One Pass Technology for OptiWindows KBA-GIORI S.A Integrated Windows

OVI SICPA Optically variable ink

Optically variable magnetic OVMI SICPA ink

Securency PolyTACTILE International Pty Ltd Tactile polymer substrate

SHAD H2O Securency switch International Pty Ltd Shadow Image

Protective varnish used at the end of banknote SICPAPROTECT SICPA manufacturing

Specific Near Infrared based covert feature used for commercial banknote SICPATALK SICPA authentication

Simultan see-through feature SimMark KBA-GIORI S.A (Offset)

Non-collating numbering SmartSkip/NBX KBA-GIORI S.A technology

Features combining colour shift and dynamic design SPARK SICPA effect

Super Check Combined quality inspection Numerota KBA-GIORI S.A equipment and letterpress numbering press Super Numerota KBA-GIORI S.A Letterpress numbering press

Super Orlof Intaglio KBA-GIORI S.A Intaglio printing press

Super Simultan KBA-GIORI S.A Simultan offset printing press

Securency Covert machine readable SUREread International Pty Ltd feature Tyvek DuPont. A polyethylene substrate

Securency WinBOSS International Pty Ltd Transitory Emboss

Securency WinDOE International Pty Ltd Diffractive Optical Element

Securency WinTHRU International Pty Ltd Clear & Complex Window

Securency WinVU International Pty Ltd Vignette