Directive Concerning Security and Surveillance Systems at Financial Institutions

1 CBL/SD/006/2010 DIRECTIVE CONCERNING SECURITY & SURVEILLANCE SYSTEM AT FINANCIAL INSTITUTIONS

1. Introduction In order to ensure adequate security protection of the premises and facilities of financial institutions including head offices, branches, cash centers, outlets, etc, the Central Bank of Liberia (CBL) hereby issues this directive to require banks to comply with the following minimum security standards for their bank premises, including their vaults.
2. Vault Security Each financial institution shall ensure that its pre-vault door(s) and /or vault door(s) have a combination-form lock. The door of the pre-vault room must have a vault-combination form lock or be opened with security locks whose keys cannot be duplicated. The vault doors must also be of international standard, stainless steel with built-in dual combination locks. The walls and ceilings, and floors of the vault must be re-enforced with minimum steel bars, crushed rocks and solid concrete. These minimum standards apply to Head Office and all branches and outlets, regardless of the size and volume of cash holdings of a branch or an outlet. In addition, each financial institution shall be required to submit to the CBL specimens of the vaults of all proposed branches or outlets for review and assessment, prior to commencing construction work on such branches or outlets.
3. Surveillance System Each financial institution shall have 24-hour, 7 day working closed circuit television (CCTV) cameras installed and fully operational both within and outside of the premises of its head office, and during the night hours for its branches, cash centers, outlets, windows, etc. The CCTV must be mounted at location(s) covering the front entrance, vault entrance, back entrance and within the vault. The camera system must maintain recordings up to at least three (3) months, and the recordings should be stored on a back up for up to

2 six (6) months. The financial institution shall ensure full security of the information recorded on the camera. In case of both the vault security and surveillance system, each financial institution shall ensure a 24-hour electrical, rechargeable batteries or solar powered system to ensure proper functioning of the CCTV camera at all times as indicated above. The surveillance system shall be complemented by an alarm system at the Head Office and the branches. 4. Hiring of Security Firms Each financial institution shall, before hiring any security firms, ensure that such firm is legally registered and licensed by the relevant Government agency. The financial institution shall be required to conduct the necessary due diligence on the security firm to ascertain its character, financial capacity and ability to facilitate a timely settlement of legitimate claims in the event of unforeseen circumstances such as burglary, theft, armed robbery and other disasters. The financial institution shall also be required to obtain an insurance coverage bond from the security firm to provide the assurance that it would perform on its insurance liability to the bank as provided under the insurance contract between the parties. 5. Insurance Requirements The financial institution must be adequately insured with regards to theft, burglary, armed robbery, fire and other disasters. The financial institution must ensure that the policies in place adequately cover cash in transit, cash on premises and cash in vault. Insurance coverage must be obtained from a registered and licensed insurance company that has a financially sound re￾insurer(s) that has the capacity to honor and pay legitimate claims that may arise by unforeseen circumstances. The reinsurer of the prospective insurance company must have maintained and currently hold an international rating of BB+ or above.

3 The financial institution shall be required to conduct the necessary due diligence on the insurance to ascertain its character, financial capacity and ability to facilitate a timely settlement of legitimate claims in the event of unforeseen circumstances such as burglary, theft, armed robbery and other disasters. The due diligence shall include but not limited to review of the external audited financials of both the insurance companies and the re￾insurers for the last three years. 6. Forbearance Each financial institution shall be required to ensure compliance with this directive within the period of six (6) months for Monrovia and its suburb and within a period of 12 months for branches and windows outside of Monrovia. This regulatory forbearance shall take effect as of the date of issuance of this directive. The requirements of this directive shall apply to all bank branches and windows as specified above. 7. Penalty for non-compliance Any financial institution found in violation of this directive shall be subject to a fine of not less than L$100,000.00 for each day of violation as of the end of the forbearance period and/or other supervisory sanctions as may be determined by the CBL. Issued this 3rd day of December 2010 in the City of Monrovia, Republic of Liberia. Signed: _____________________________ Central Bank of Liberia