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Industry Guidelines on Banknote Production - 2010

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Industry Guidelines on Banknote Production - 2010 The International Association of Currency Affairs Industry Guidelines on Banknote Production - 2010 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. Copyright © IACA 2008 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 Copyright © IACA 2008 page 2 of 92 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: Copyright © IACA 2008 page 3 of 92 Copyright © IACA 2008 page 4 of 92 Copyright © IACA 2008 page 5 of 92 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 Copyright © IACA 2008 page 6 of 92 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); Copyright © IACA 2008 page 7 of 92 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. Copyright © IACA 2008 page 8 of 92 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. Copyright © IACA 2008 page 9 of 92 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.
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