How to be compliant with the Code of Conduct for the Authentication of Machine-Dispensed Banknotes

This tool will help you understand how you can become compliant with the Local Recycling Code.  Please note that this tool currently applies to Bank of England banknotes only.

 

Please pick the category below which applies to you: 

ATM

Who is responsible for filling the ATM with banknotes?

My organisation is responsible —our own staff fill the ATM with banknotes

Where do the banknotes that are used to fill or ‘top up’ your ATM come from?

Notes are supplied by a bulk supplier (e.g. delivered by a CiT company)

What you need to do to be compliant

You need to confirm with your banknote supplier that the notes they give you have been machine-authenticated.

Ask your supplier if they supply your notes in accordance with principle 1.1 of the Code, i.e. notes must be authenticated using an authenticator listed on the Bank of England’s Framework.

View the Framework Download the Code


If the answer to the above is ‘yes’, and you keep authenticated notes segregated from other, unsorted, notes, you are Code compliant.

How to report your compliance

  • Your ATM operator may ask you to confirm that the banknotes you put in your ATM have been machineauthenticated.
  • Your ATM operator will report aggregated compliance data.

Notes are locally sourced (any notes not supplied by a bulk supplier)

What you need to do to be compliant

You need to ensure that all locally sourced banknotes are authenticated using a machine listed on the Bank of England’s Framework. There are two ways to do this:

1. Banknotes can be authenticated by a standalone authentication machine.

2. Your ATM may be able to internally recycle banknotes (if it accepts deposits).

For further information on the two methods, download the diagrams and explanatory notes.

See pages 6 and 7 of the Code for further details on the four principles of compliance, which include machine maintenance and internal procedures.

Download diagrams View the Framework

How to report your compliance

  • Your ATM operator may ask you to confirm that the banknotes you put in your ATM have been machine-authenticated.
  • Your ATM operator will report aggregated compliance data.

Notes come from a range of sources

What you need to do to be compliant

You need to ensure that all the banknotes you put into your ATM have been authenticated using a machine which is listed on the Bank of England’s Framework. There are three ways to do this:

1. Banknotes are supplied by a bulk supplier (e.g. delivered by a CiT company).

2. Banknotes can be authenticated by a standalone authentication machine.

3. Your ATM may be able to internally recycle banknotes (if it accepts deposits).

If using method 1, you must confirm with your banknote supplier that the notes they provide you with have been machineauthenticated using an authenticator listed on the Bank’s Framework. For further information on methods 2 and 3, download the diagrams and explanatory notes.

See pages 6 and 7 of the Code for further details on the four principles of compliance, which include machine maintenance and internal procedures.

Download diagrams View the Framework

How to report your compliance

  • Your ATM operator may ask you to confirm that the banknotes you put in your ATM have been machine-authenticated.
  • Your ATM operator will report aggregated compliance data.

My organisation is responsible—but our own staff don’t fill the ATM, we have a contract with another company to fill the ATM for us

What you need to do to be compliant

You need to confirm with your banknote supplier that the notes they give you have been machine-authenticated.

Ask your supplier if they supply your notes in accordance with principle 1.1 of the Code, i.e. notes must be authenticated using an authenticator listed on the Bank of England’s Framework.

View the Framework Download diagrams


If the answer to the above is ‘yes’, and you keep authenticated notes segregated from other, unsorted, notes, you are Code compliant.

How to report your compliance

  • Your ATM operator may ask you to confirm that the banknotes you put in your ATM have been machineauthenticated.
  • Your ATM operator will report aggregated compliance data.

Another organisation is responsible

You are not responsible for complying with the Code—the organisation that fills the ATM is responsible

Self-service checkout

Where do the banknotes that are used to fill or ‘top up’ your SCOT come from?

Notes are supplied by a bulk supplier (e.g. delivered by a CiT company)

What you need to do to be compliant

You need to confirm with your banknote supplier that the notes they give you have been machine-authenticated.

Ask your supplier if they supply your notes in accordance with principle 1.1 of the Code, i.e. notes must be authenticated using an authenticator listed on the Bank of England’s Framework.

View the Framework Download the Code


If the answer to the above is ‘yes’, and you keep authenticated notes segregated from other, unsorted, notes, you are Code compliant.

How to report your compliance

Notes are locally sourced (any notes not supplied by a bulk supplier)

What you need to do to be compliant

Ensure that all locally sourced banknotes are authenticated using a machine. There are a number of ways to do this – see the diagrams and explanatory notes for examples.

Download diagrams


The authenticating machine must use a software/firmware version listed on the Bank of England’s Framework.

Link to Framework


See pages 6 and 7 of the Code for further details on the four principles of compliance, which include machine maintenance and internal procedures.

How to report your compliance

Notes come from a range of sources

What you need to do to be compliant

Ensure that all the banknotes you put into your SCOT have been authenticated using a machine. There are a number of ways to do this – see the diagrams and explanatory notes for examples.

Download diagrams

The authenticating machine must use a software/firmware version listed on the Bank of England’s Framework.

View the Framework


See pages 6 and 7 of the Code for further details on the four principles of compliance, which include machine maintenance and internal procedures.

How to report your compliance

ATM Operator

Where do the banknotes that are used to fill or ‘top up’ your ATM(s) come from?

Notes are supplied by a bulk supplier (e.g. delivered by a CiT company)

What you need to do to be compliant

You need to confirm with your banknote supplier that the notes they give you have been machine-authenticated.

Ask your supplier if they supply your notes in accordance with principle 1.1 of the Code, i.e. notes must be authenticated using an authenticator listed on the Bank of England’s Framework.

View the Framework Download the Code


If the answer to the above is ‘yes’, and you keep authenticated notes segregated from other, unsorted, notes, you are Code compliant.

How to report your compliance

If you are a LINK member, you must certify your compliance during the annual LINK attestation process. LINK will ask you whether all banknotes loaded into your ATM(s) have been machine-authenticated.
If you are not a LINK member, you must report your compliance using the self-certification form.

Notes are locally sourced (any notes not supplied by a bulk supplier)

What you need to do to be compliant

Ensure that all locally sourced banknotes are authenticated using a machine listed on the Bank of England’s Framework. There are two ways to do this:

1. Banknotes can be authenticated by a standalone authentication machine.

2. Your ATM may be able to internally recycle banknotes (if it accepts deposits).

For further information on the two methods, download the diagrams and explanatory notes.

Download diagrams View the Framework


See pages 6 and 7 of the Code for further details on the four principles of compliance, which include machine maintenance and internal procedures.

How to report your compliance

If you are a LINK member, you must certify your compliance during the annual LINK attestation process. LINK will ask you whether all banknotes loaded into your ATM(s) have been machine-authenticated.
If you are not a LINK member, you must report your compliance using the self-certification form.

Notes come from a range of sources

What you need to do to be compliant

Ensure that all the banknotes you put into your ATM(s) have been authenticated using a machine listed on the Bank of England’s Framework. There are three ways to do this:

1. Banknotes are supplied by a bulk supplier (e.g. delivered by a CiT company).

2. Banknotes can be authenticated by a standalone authen-tication machine.

3. Your ATM may be able to internally recycle banknotes (if it accepts deposits).

If using method 1, you must confirm with your banknote supplier that the notes they provide you with have been machine-authenticated using an authenticator listed on the Bank’s Framework. For further information on methods 2 and 3, download the diagrams and explanatory notes.

See pages 6 and 7 of the Code for further details on the four principles of compliance, which include machine maintenance and inter-nal procedures.

Download diagrams View the Framework

How to report your compliance

If you are a LINK member, you must certify your compliance during the annual LINK attestation process. LINK will ask you whether all banknotes loaded into your ATM(s) have been machine-authenticated.
If you are not a LINK member, you must report your compliance using the self-certification form.

Bulk supplier of banknotes

Direct from NCS
(and have not been recirculated since collection from NCS member)

You can confirm to your customers that the notes you provide them with are compliant with the Code.

Not direct from NCS
(i.e. the banknotes have been recirculated since they were authenticated by an NCS member)

To comply with the Code:
  • Notes must be authenticated using an authenticator and software/firmware version listed on the Bank of England’s Framework.

    Download diagrams



  • You must also comply with principles 2.1, 3, 4.1 and 4.4 of the Code.

    View the Framework



You can only confirm to your customers that the notes you provide them with are compliant with the Code if authentication has been carried out in accordance with Code principles, and that the notes have not been recirculated since authentication was undertaken.

Banknote Equipment Manufacturer

The Code requires Bank of England banknotes which are dispensed from customer-operated cash dispensers (COCDs) to have been machine-authenticated before they are dispensed.

Operators of COCDs (e.g. ATMs and SCOTs) require Framework-listed authenticators in order to be compliant with the Code.

Authenticators can either be standalone models or within the COCD itself (usually as part of the accept/dispense mechanism).

Authenticators must use software/firmware listed on the Bank of England’s Framework and be updated according to principles 3.1 and 3.2 of the Code (see page 7).

COCD operators require knowledge of the authenticators they are using and how they need to be maintained. COCD operators may contact BEMs in order to obtain this information and ensure they are compliant with the Code.

View the Framework Download the Code

Other note dispensing machine

Where do the banknotes that are used to fill or ‘top up’ your machine come from?

Notes are supplied by a bulk supplier (e.g. delivered by a CiT company)

What you need to do to be compliant

You need to confirm with your banknote supplier that the notes they give you have been machine-authenticated.

Ask your supplier if they supply your notes in accordance with principle 1.1 of the Code, i.e. notes must be authenticated using an authenticator listed on the Bank of England’s Framework.

View the Framework Download the Code


If the answer to the above is ‘yes’, and you keep authenticated notes segregated from other, unsorted, notes, you are Code compliant.

There is currently no compliance reporting requirement for other note dispensing machines.

Notes are locally sourced (any notes not supplied by a bulk supplier)

What you need to do to be compliant

Ensure that all locally sourced banknotes are authenticated using a machine. There are a number of ways to do this – see the diagrams and explanatory notes for examples.

Download diagrams



The authenticating machine must use a software/firmware version listed on the Bank of England’s Framework.

View the Framework



See pages 6 and 7 of the Code for further details on the four principles of compliance, which include machine maintenance and internal procedures.

There is currently no compliance reporting requirement for other note dispensing machines.

Notes come from a range of sources

What you need to do to be compliant

Ensure that all the banknotes you put into your SCOT have been authenticated using a machine. There are a number of ways to do this – see the diagrams and explanatory notes for examples.

Download diagrams



The authenticating machine must use a software/firmware version listed on the Bank of England’s Framework.

View the Framework



See pages 6 and 7 of the Code for further details on the four principles of compliance, which include machine maintenance and internal procedures.

There is currently no compliance reporting requirement for other note dispensing machines.

Your business/organisation has an ATM on the premises (and your main business is not banking).

Your business/organisation has a self-service checkout (SCOT) on the premises. (You will need to comply with the Code if your SCOT dispenses banknotes. You do not need to comply with the Code if your SCOT dispenses only coin or is card-only.)

An ATM Operator is a business/organisation that manages an estate of ATMs. The business/organisation would typically be a member of an ATM settlement scheme, e.g. LINK, Visa, Mastercard, in order to be an ATM Operator. Alternatively, an ATM operator may have one or more ATMs that are not connected to an ATM settlement scheme. For example, a bank may have ATMs that can only be used by the bank’s own customers.

A bulk supplier of banknotes is a business/organisation that processes banknotes on an industrial scale, e.g. a cash-in-transit (CiT) company.

A manufacturer of banknote handling equipment such as ATMs, self-service checkouts, authenticators, etc.

You have a machine which dispenses banknotes direct to customers, but the machine is neither an ATM nor a self-service checkout.