Palma was great - next venue will be extraordinary!

The following is a quote of Ken Niven, ESTA President, taken from his closing speech made during the annual ESTA conference “Cash is secure and universal”, held 22-24 May 2011.

“Over the last two days we have had very successful presentations and panel discussions on a very wide range of cash related topics. I will not attempt to summarise all of them, but there are some important themes we should remind ourselves of.
We have heard about:

• The cash cycle in Spain,
• Professor Raufer gave us a privileged preview of his upcoming report on the minimal relationship between cash and serious crime,
• We heard about a possible Charter for Cash and Ron Delnevo made the point about ATMs issuing low denomination notes,
• We heard about the vital importance of technology is making the cash cycle more efficient and had an interesting discussion on standardisation topics, 
• We had an insight into the importance of Balance Sheet Relief, and I believe that this will be on our lobbying agenda in the coming year,
• We were updated on cross-border and aspects of regulation,
• And finally we have had an excellent session on security and insurance this morning”... 

 
Most presentations delivered in Palma de Mallorca are available from our web site.

Save the date for next years' conference: June 10/12th.

EU Affairs

Cross Border regulation – Update

The regulation is in its final stage of translation and legal review. The Plenary session of the European Parliament of July will most probably table it for ratification and it is likely to be binding after the summer recess, in early September. A transitional period of one year is provided for its implementation.
We will schedule a few working groups to deal with its practical implementation.
 
The presentations delivered in Madrid on this topic are available from our web site.

Euro Cash in circulation (ECB)

The latest data taken from the European Central Bank shows that euro coins and bank notes continue to grow:
The number of Euro banknotes in circulation in May 2011 stood at 14027 million, with a value of €838, an increase of 2,74%, respectively 1,69% since Q1 2011.
In May this year, the total number of Euro coins in circulation grew to 95029 million and their value increased to €22611, both totals showing an increase of 1,24%, respectively 1,21% since Q1 2011.
The trend shows an increase in numbers during this first half of 2011 regardsless their high or low denomination.
Click on the below graphs to gain direct access to the ECB statistics on bank notes and coins in circulation since 2008.

These are the graphs:

	Chart 1: Low denomination banknotes in circulation (in quantities, millions)
	Chart 2: High denomination banknotes in circulation (in quantities, millions)
	Chart 3: Low denomination coins in circulation (in quantities, millions)
	Chart 4: High denomination coins in circulation (in quantities, millions)

 

Free choice in means of payment

156 MEPs have signed a written declaration on free choice in means of payment dated 17 January 2011. In its document the European Parliament calls on the Commission to:

• ensure that all EU citizens have the freedom to choose and access the means of payment best suited to their needs,
• ensure that EU policy in financial services, financial education, single market, competition and social affairs reflect this basic right,
• ensure that such policies do not discriminate against the use of any free and universal means of payment without addressing the needs of vulnerable groups in society,
• monitor and encourage compliance with its Recommendation of 22 March 2010.

Click to view the full document (opens in pdf)

Europol OCTA annual report

Excerpts:
Payment card fraud - The EU is the world's largest market for payment card transactions. In 2009 organised crime groups derived more than 1.5 billion Euros from payment card fraud in the EU. Taking fraudulent transactions in the EU against non-EU financial institutions also into consideration the total illicit income of criminal groups engaged in this activity is likely to be much higher.
Money Laundering - Organised crime groups continue to use established methods of money laundering such as cash couriers and shell companies. But the availability of many new laundering possibilities offered by modern technology has provided transnational groups with new ways to further their criminal interests. In some Member States, investigations into suspected money laundering activities continue to be hampered by the requirement for a predicate offence.

The Internet as a Facilitator for Organised Crime - As a communication tool, information source, marketplace, recruiting ground and financial service the Internet facilitates all types of offline organised criminality, including illicit drug extraction, synthesis and trafficking, trafficking in human beings (THB) for sexual exploitation, illegal immigration, Mass Marketing Fraud (MMF), MTIC (VAT) fraud, euro counterfeiting and the trade in prohibited firearms.

Online banking provides organised crime groups with the opportunity to move criminal assets faster than ever before, unhampered by offline geographical barriers. Online gambling is used for the laundering of criminal proceeds, as are the in-game currencies of virtual worlds: in this context, the reported establishment of gambling websites by Italian organised crime groups may serve the dual purpose of profit generation and money laundering. Virtual payment systems have also been used by groups for laundering and monetarisation.

Click to view the full document (opens in pdf)

Miscellaneous

French Study on Cashless society

A major University study will be published soon by Paris ll University on the cashless society under the combined angles of distinguished criminologists and sociologists.

Our 2011 conference had the privilege to receive a preview delivered by Professor Xavier Raufer, Director of studies and research at Paris ll University.

The study summarised in a few lines:
What do the enemies of cash say?
• Terrorist networks are major cash users! WRONG!
• Cash is the only vector of criminal violence? WRONG!
• Criminals and terrorists only use cash. WRONG!
• If there were no cash, violent crime targeting businesses would disappear. WRONG!
What do the enemies of cash propose?
• Eradication of cash and replacement with biometrically secured smartcards. DISASTER!
Is electronic money safe?
• Are electronic systems (information technology - Internet) reliable? NO!
• Will they be more so in the future? EVEN LESS SO!
• Are the banks secure and reliable? NO!
• Are bankcard transactions impenetrable? NO!
And in the future?
• Electronic transactions: the future is gloomy.

One year of ESTA's major achievements

• On cross border, we have turned the European Commission proposal into an acceptable document, working with key stakeholder groups to deliver this outcome.
• We have developed our networks with NGOs to ensure that the universal aspect of cash has a voice.
• We have worked with the EPC to push the concept of Balance Sheet Relief to further improve the efficiency of the cash cycle.
• We continue to defend cash as the preferred means of payment...
• ...and in doing so we are working to ensure that all EU citizens have the freedom to choose and access the means of payment best suited to their needs.  And we will monitor that EU policy in financial services/ financial education/ single market competition/ and social affairs reflect this basic right.
• We have also been working hard to encourage compliance with the EC Recommendation of 22 March 2010 in relation to the legal tender of Euro cash.
• And finally, our cross-company working groups in cash cycle, government regulation, and security, have continued to develop best practice, and we have made our collective industry points of view to policy departments and cash cycle stakeholders at both European and country level.

Internal Affairs

ESTA is pleased to announce that the number of suppliers applying for ESTA membership continues to grow. During last year the Board approved the application of the 8 below listed adherent members:
Technove Security S.L. (Spain),
Gunnebo Cash Automaten GmbH (Germany),
MS4C B.V. (The Netherlands),
SISVEND - Sistemas e equipamentos, LDA (Portugal),
Lagasse Technologies SAS (France),
Shop Safe AG (Switzerland),
HOZA Logistic Solutions, (The Netherlands),
FIT Value Logistic Solutions (The Netherlands)

Save the date!

Next years' conference: June 10/12th in a location soon to be announced! Meanwhile, we give you a taste of venues currently under discussion!

 

We wish all our readers a well deserved summer break!