Upon completion of this course, participants will be able to:

• Analyze the impact of **Cash Recycling Systems (CRS)** on the national cash cycle, including velocity and central bank workload.
• Establish and enforce rigorous **minimum standards for authenticity and fitness** for all currency recirculated via CRS.
• Develop a comprehensive **CRS monitoring and audit framework** to ensure commercial bank compliance with central bank standards.
• Evaluate the technical specifications, sensor technology, and security features of various CRS models.
• Design a policy framework for the legal and operational **risk sharing** between the central bank and CRS operators.
• Utilize CRS performance data (e.g., reject rates, fitness scores) to optimize its contribution to the cash cycle.
• Understand the role of CRS in anti-money laundering (AML) and know-your-customer (KYC) compliance at the point of deposit.
• Formulate a strategic policy on the future expansion and technological integration of the national CRS network.

• Cash Operations and Policy Specialists at Central Banks.
• Banking Supervisors and Compliance Officers.
• Product and Operations Managers for Commercial Bank CRS Networks.
• Internal Auditors focused on Cash Integrity and Technology.
• FinTech and Payments Strategy Analysts.
• Risk Managers focused on Decentralized Cash Handling.

• CRS Compliance Audit Simulation Exercises and Checklist Development
• Group Activities on Designing a Policy for Risk Sharing between Central Bank and CRS Operator
• Case Studies on CRS Counterfeit Dispensing Incidents and Remediation
• Expert Lectures on Advanced CRS Sensor Technology and Central Bank Certification
• Discussions on the Role of CRS in AML/KYC Compliance at the Teller Line
• Individual Exercises on Analyzing CRS Performance Data and Identifying Compliance Breaches

Unit 1: The Role and Impact of Cash Recycling Systems

• Defining CRS: automated devices that authenticate, sort, and dispense cash at the point of service.
• Impact of CRS on cash velocity, inventory levels, and the central bank's workload.
• Analyzing the cost savings and efficiency gains for commercial banks and retailers using CRS.
• The policy challenge: ensuring recycled cash meets the same integrity standards as centrally processed cash.
• Mapping the legal ownership and accountability of cash held within a commercial bank's CRS network.

Unit 2: Setting and Enforcing Standards for Recycling

• Establishing non-negotiable **authenticity standards** (counterfeit detection) for CRS.
• Defining the minimum **fitness standard** for notes permitted to be recycled/recirculated.
• Protocols for **central bank certification and testing** of CRS models and their sensor capabilities.
• Designing the on-site audit methodology for commercial bank CRS operations and compliance.
• Managing the disposal and accountability of counterfeit and suspect notes identified by CRS.

Unit 3: CRS Technology and Operations Management

• Technical overview of CRS sensor technology, internal sorting, and vaulting capabilities.
• Strategies for remote monitoring, maintenance, and troubleshooting of a decentralized CRS network.
• Utilizing CRS performance data (e.g., reject rates, downtime) to identify compliance or machine failures.
• Integrating CRS data feeds with central bank surveillance and cash tracking systems.
• The role of software updates and patch management in maintaining the security and integrity of CRS.

Unit 4: Policy, Risk, and Compliance

• Developing the regulatory framework for CRS operations, including penalty schemes for non-compliance.
• Analyzing the risk of using CRS for money laundering or terrorist financing at the point of deposit.
• Protocols for integrating CRS transactions into the commercial bank's **AML/KYC compliance framework**.
• Managing the legal and liability risks associated with dispensing a counterfeit note from a CRS.
• The role of the central bank in managing systemic risk related to large-scale CRS network failure.

Unit 5: Strategic Development and Future CRS

• Strategies for expanding the CRS network to remote or underserved geographical areas.
• Analyzing the potential of next-generation CRS (e.g., enhanced sensors, AI integration).
• The policy decision on **full cash automation** and the reliance on third-party CRSs.
• Developing incentive structures (e.g., reduced central bank fees) to encourage compliance and efficient recycling.
• Future coordination between CRS networks and potential Central Bank Digital Currency (CBDC) physical access points.