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National standards required: for cash handling security and auditing systems

National standardisation of the auditing systems applied by commercial banks and financial institutions to their cash handling processes, will lead to cost and time savings and result in much-needed specification sets for the integrated electronic CCTV surveillance and data capture systems used for security. At a recent cash handling security seminar in Pretoria hosted by the Reserve Bank, the Reserve Bank supported a call for national standardisation in cash handling procedures and security that will lead to significant benefits for the industry.

Dr Bennie Coetzer, joint managing director of the local manufacturer of high-level integrated electronic CCTV surveillance, digital recording and data capture systems, Thales Advanced Engineering, made a presentation to representatives of leading commercial banks at the seminar and pointed out that a number of systems were in place to facilitate cash handling between the major players involved in the ongoing cash distribution and return cycle - the Reserve Bank, the commercial banks and large retail outlets that do significant business in cash.

Dr Bennie Coetzer

"Some of the systems in place are probably better than others but the facts are that there are variances in systems and from time to time disputes arise between the various parties involved if the amount that is claimed to have been sent, does not tally with the count by the receiving party.

"If a retailer claims to have delivered R1,5 million in cash to its commercial bank partner and the bank claims that its count reveals a shortfall of R100 000, how does either party conclusively prove it is right and the other is wrong?" asked Dr Coetzer.

Standardisation key

He added that standardisation of the auditing systems applied to cash handling by all players in the chain combined with minimum or industry-approved and recommended specifications for the integrated electronic CCTV surveillance and data capture systems used for security, would minimise the risk of disputes and where such disputes did occur, allow them to be resolved quickly and cost-effectively.

"If standards are accepted and adhered to by the industry then the results that emerge from the investigations into any dispute must also find acceptance with all of the parties involved. The role of surveillance security systems designers and manufacturers such as Thales, is to provide the industry with acceptable security systems that support the laid down standards."

Dr Coetzer said that from the Thales experience in providing cash handling surveillance security systems for the Reserve Bank and Standard Bank, key areas for defining a suitable integrated electronic CCTV surveillance, digital recording and data capture system revolve around four distinct capabilities: initial incident detection, recognition/interpretation, positive identification and detailed image analysis.

Image quality and identification

"The stored video image must be of a quality that will enable trained observers to detect a situation requiring further scrutiny, recognise and interpret what may be happening, positively identify the happening and those involved and then execute detailed image analysis to confirm the amounts involved as well as the cash box tag information which includes the origin and total amount of cash, note denominations, the total number of each denomination and other relevant data.

"So the pictures have to be of a quality that will guarantee a successful prosecution. Standards come into play when it is considered that picture quality is the sum of many parts and factors such as rapid frame rates, shutter speed, exposure, variable light conditions and freeze frame clarity need to be within certain parameters to structure a system that will achieve the desired results."

Realtime, or reel time?

Dr Coetzer gave as an example the high speed at which a R200 note can be flicked off the counting table. As this can be done in a fraction of a second, the surveillance camera shutter speed specification must be such that the system would provide a freeze frame that would clearly show this taking place without blurring or distortion.

"Systems must be structured to be capable of recording cash handling processes at very high image quality and rapid frame rates so that if any mishap does occur, the bank or retail operation management will be able to fully track the event in great detail from the digitally stored images. The cash shipment is tracked from the moment it arrives, during opening, counting, re-packing and storage and until it finally leaves the premises.

"The system design has to be modular to cater for future expansion and for the integration of all other security aspects, including non-visual information such as shipment identification and the contents data in order to provide a total surveillance solution. The system should also allow integration of the digital number systems on the electronic counting machines that are used so that this detail is available on the stored digital video footage."

Digital storage

While these systems are high-level, they are configured to be user-friendly and simple to operate. Digital storage of very high quality images ensures a complete and clear audit trail is available to verify events and to prove or disprove a fraudulent event. The stored information, whether it is video images or data, is also remotely accessible by the management concerned.

According to Dr Coetzer, these systems can also be automated but this will only be possible in a meaningful way if the industry agrees on standard requirements, systems specifications and procedures.

"If there is a dispute between a commercial bank and a retailer who has sent in a cash shipment, the bank will have to store its surveillance images and information for as long as it takes the retailer who sent the parcel to check out the information. A standardised system and process would streamline this and reduce the need for expensive long-term storage capacity. Such disputes often take 30 days or more to resolve but with industry standardisation this could be reduced to 48 hours or less.

"Integrated CCTV surveillance systems are management tools, providing information quickly and easily in a format that can be used effectively. It is all about information gathering and the presentation of that information in a way that allows management to properly monitor, control and secure the cash handling processes. Industry standardisation will lead to more effective and less costly solutions that meet the real requirements of the industry."

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