Cross-border transportation of euro cash by road

 

SUMMARY OF:

Regulation (EU) No 1214/2011 — rules on the professional cross-border transport of euro cash by road between euro-area countries

WHAT IS THE AIM OF THIS REGULATION?

The aim is twofold:

• to ensure a more level-playing field for cash-intransit (CIT) companies providing transportation of euro cash by road in the euro area;
• to ensure that the professional transport of euro cash by road between countries belonging to the euro area is competitive, secure and safe for both the staff concerned and the general public.

KEY POINTS

Rationale and scope

The introduction of the euro has increased the need for the cross-border transport of cash by road in euro area countries. Banks, the retail sector and other professional cash handlers should be able to contract with CIT companies offering the best price and/or service. They should also be entitled to take advantage of the cash services of the nearest national central bank branch or CIT cash centre, even if it is located in another euro-area country. Euro-area countries (‘participating countries’) also have the right to arrange for euro banknotes and coins to be produced abroad. Retailers and banks located in border areas may wish to obtain their supplies from the cash centre nearest to them, which is not necessarily in the same EU country. The very principle of a single currency implies the freedom to move cash between participating euro-area countries.

A full harmonisation of CIT transport in participating EU countries was not considered feasible, nor was a system considered appropriate where authorisation in one EU country would be valid in all EU countries (‘mutual recognition’). Therefore, Regulation (EU) No 1214/2011 lays down a set of common rules valid in all EU countries, without prejudice to national rules for certain aspects explicitly indicated in the regulation. It does not involve full harmonisation, as the common rules only apply to cross-border transport.

Cross-border CIT licence

Given the potential threats, associated with the activity of transporting cash, to the security of the staff of CIT companies and the general public, the cross-border transport of euro cash is subject to holding a specific cross-border CIT licence. National authorities grant this licence for a period of 5 years if CIT companies meet certain conditions, such as requirements for security staff or for vehicles.

The CIT licences are registered in the EU’s Internal Market Information System to allow public authorities to easily access them.

Staff carrying out cross-border CIT are entitled to the minimum rates of pay that apply in the host countries.

Cross-border transport of euro cash

The cross-border CIT licence grants the holder the right to transport euro banknotes and coins across borders by road, during daylight hours and only if both the majority of the pick-up or of the delivery is in the host country and the value of euro cash is at least 80 % of the total cash value transported in the vehicle. Some specific transport arrangements are explicitly exempted from the scope of the regulation, such as point-to-point transports to and from national central banks or cash production sites.

Transport arrangements

The regulation provides for 5 types of transport arrangements for euro banknotes and 2 types for euro coins. It defines the conditions of each, such as:

• vehicle armouring;
• the use of intelligent banknote neutralisation systems (IBNS);
• the presence of CIT security staff.

The participating countries decide which transport arrangements apply in their territory.

Role of IBNS and removal of neutralised banknotes

The regulation seeks to facilitate the use of IBNS so as to improve the security of CIT security staff and the public. CIT companies must remove neutralised banknotes (banknotes rendered unusable to protect them against unauthorised access) from circulation so that they are no longer used for payment.

Host country rules applying to transport: national police force, public security and carrying of firearms

CIT aspects not covered by the common rules of the regulation are governed by national law, subject to the general rules of the treaty (such as the principle of non-discrimination), and must be respected in the host country by the CIT company carrying out the cross-border transport. These national rules concern:

• the role of the police force (such as prior notification, escorting or distant remote tracking);
• security rules on cash delivery or pick-up at locations; and
• rules on firearms.

Notification and information

• Licence holders must inform the participating country of the intended start of cross-border transport.
• Participating countries must inform each other of cross-border business notified by the CIT companies.
• On the Europa website, the European Commission publishes all information on:
  • IBNS approved by participating countries;
  • national rules on the role of police forces and on the security of locations where the cash is delivered or picked up from;
  • national CIT training requirements;
  • the credentials of the national granting authority; and
  • the host administration that has to be notified about the start of cross-border transport.
• The Commission publishes the applicable transport arrangements as chosen by the participating countries in the Official Journal of the European Union.

Compliance checks, penalties and emergency security measures

Participating countries carry out compliance checks on CIT companies acting in their territory. Penalties can be applied in cases of non-compliance.

Competent authorities may introduce temporary security measures in the event of an urgent problem significantly affecting the security of CIT operations.

Review

Every 5 years, the Commission reports to the European Parliament and the Council on the regulation’s implementation.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 29 November 2012.

BACKGROUND

For more information, see:

• Common EU rules for professional cross-border transportation of euro cash by road (European Commission).

MAIN DOCUMENT

Regulation (EU) No 1214/2011 of the European Parliament and of the Council of 16 November 2011 on the professional cross-border transport of euro cash by road between euro-area Member States (OJ L 316, 29.11.2011, pp. 1-20)

RELATED DOCUMENTS

Applicable transport arrangements in the euro-area Member States (Article 13(5)) and in Andorra, Monaco, San Marino and the Vatican (Regulation (EU) No 1214/2011 of the European Parliament and of the Council on the cross-border transport of euro cash by road between euro-area Member States) (OJ C 139, 4.5.2017, pp. 14-23)

Report from the Commission to the European Parliament and the Council on the implementation of Regulation (EU) No 1214/2011 of the European Parliament and of the Council of 16 November 2011 on the professional cross-border transport of euro cash by road between euro-area Member States pursuant to Article 26 of this regulation (COM(2017) 5 final, 11.1.2017)

Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services (OJ L 18, 21.1.1997, pp. 1-6)

last update 01.03.2018