The Bank of England has published a review of the initial phase of the Code of Conduct for the Authentication of Machine-Dispensed Banknotes.

The Code, which was launched in July 2013 following an industry consultation, requires BoE banknotes dispensed from note-dispensing machines (such as ATMs or self-service checkouts) to be machine-authenticated before being dispensed. Among other matters, the revised Code imposes extra requirements on organisations to confirm with their note supplier that banknotes were machine-authenticated prior to delivery.

What this means for you?

The timetable for the implementation of the Code has been changed to be more compatible with the timetable for the introduction of polymer (and smaller sized) £5 and £10 banknotes.

A consultation on whether and how the compliance timetable and reporting process for the Code should be extended to cover other sectors where the practice of dispensing banknotes is starting to be seen (e.g. transport ticket machines which dispense banknotes as change), will follow a period of further research and is likely to take place in 2016.