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False August 2008 | The Brink’s Journal | Page 13 Although it’s been more than two years since German- based Heros Armored collapsed in one of Europe’s largest fraud scandals, the armored transportation business is inherently risky, and no provider can guarantee with 100 percent certainty that security of the cash and valuables it transports on behalf of its customers. Providers can, however, assume liability for valuables in their possession so that, in the event of loss or theft, customers do not suffer a loss. This excerpt from Managing Risk: Evaluation Armored Transportation Providers, a white paper published by Brink’s, Incorporated, explores the criteria for evaluating and choosing a provider, and the dangers of making a selection without knowing the facts. The full text of this white paper is available for download at http:// www. brinksinc. com/ WhitePapers/. The Choice is Yours Even though many doctors wear white lab coats, we don’t typically assume that all doctors who wear white coats are equally qualified to treat our ailments. The same is true for armored transportation providers. The armored trucks may look impressive, but it’s the operational quality and financial strength of the provider that determines the security of your valuables. Take the case of U. S.- based Revere Armored, Inc., for example. Started in 1979 when an auto mechanic took possession of an armored truck whose owner was unable to pay the repair bill, Revere’s explosive growth was fueled by aggressive pricing designed to underbid competitors. Customers never questioned the company’s financial stability, the owners’ background, the company’s operational policies, or the astonishingly low pricing structure, presumably to avoid losing out on the great bargain they thought they were getting. Lose, however, they did. In 1993, federal authorities raided the company’s headquarters and uncovered one of the biggest heists of the century— pulled off by Revere itself. Of the $ 84 million Revere reportedly had in storage on behalf of customers, only $ 45 million was discovered. The rest of the money was used by the owners to pay their personal gambling debts and operate the business. Revere customers collectively lost almost $ 40 million. As staggering as that loss was, it is small compared to the losses suffered by customers of German- based Heros Armored. Heros was shut down in 2006, its owners accused of stealing hundreds of millions in customer cash— a loss so great it severely tested the German monetary system. As with Revere, much of this loss will likely never be recovered or reimbursed to the customers who placed their trust in Heros. The lesson here is clear: There is no substitute for strength, stability, and integrity. Trust your instincts. If a deal seems too good to be true, it probably is. More information and explanation of these questions can be found in Managing Risk: Evaluation Armored Transportation Providers, a white paper published by Brink’s, Incorporated, and available for download at http:// www. brinksinc. com/ WhitePapers/. Choosing an Armored Transportation Provider How much risk are you willing to take? Brink’s Highlight Top Ten Questions To Ask Before You Sign A Contract 1. How long has the company been in business? 2. What coverage does the armored car insurance policy provide? 3. Does the insurance certificate list all exclusions and warranties that could impact claims? 4. Does the company have the financial strength to satisfy its insurance premiums and deductibles? 5. Is insurance coverage restricted by insurance inspectors’ recommended upgrades, modifications or procedures? 6. How does the provider handle losses? 7. How quickly does the armored transportation provider settle claims? 8. Has any company lost money with the provider and not been fully reimbursed? 9. Are the company’s employees screened and trained in all relevant security procedures? 10. Are you guaranteed payment for all risks assumed by the carrier, while in the hands of the carrier, anywhere in the world? False Page 14| The Brink’s Journal | August 2008 www. brinksinc. com Brink’s Global News India imported 139 tonnes of gold in the first half of the current year, down 67 percent from a year ago, the head of Bombay Bullion Association said on Friday. “ If prices stay at the same rates the rest of the year will show a similar fall in imports,” Suresh Hundia, president of the Bombay Bullion Association said. The Gemological Institute of America’s ( GIA) laboratory in Thailand will now offer diamond grading services in addition to the colored stone and pearl services it currently offers, effective immediately. GIA Thailand is initially offering the diamond grading services for diamonds ranging from 0.15 carats up to 1.99 carats. The laboratory is also accepting diamonds for all other services that will be dealt with on an expedited basis at one of the U. S. offices. Ken Scarratt, managing director for South East Asia and director for GIA Thailand Laboratory, also said that clients in the region can send goods for identification or grading by using the Brink’s Bonded Facility in Thailand. “ All clients have to do is submit their stones to Brink’s in their home Country and Brink’s Thailand will handle importation into Bond. In this way GIA can service every country in the region,” he explained. According to Scarratt, GIA Thailand’s booth at the 41st Bangkok Gems and Jewelry Fair that runs from February 27 to March 2, 2008 will focus mainly on diamonds, though all other services will be covered as well. Citing information from the United States Geological Survey ( USGS), Expreso daily reported today that Peru continues to be the world’s top silver producer and has replaced the U. S. and Australia as the world’s number two producers of copper and zinc. Confirming the information, the Andean country’s Ministry of Energy and Mines reported that despite social conflicts in Peru, the country had had a successful 2007 and was the world’s largest silver producer as well as the second highest producer of zinc and copper. According to the USGS, Peru produced over 109 million ounces of silver in 2007. Mexico and China were ranked in second and third place with more than 96 million ounces and over 86 million ounces of production respectively. Demand for silver has increased 1.51 percent this year. It was also reported that the Andean country produced 1,200 metric tons of copper, replacing the U. S. as the world’s second largest copper producer. Chile is still ranked first with production as high as 5,700 tons. With 1,500 metric tons of zinc produced in 2007, Peru also replaced Australia as the world’s second highest zinc producer. China remains the world’s largest zinc producer. It is time to begin bidding farewell to the YTL, which came into circulation three years ago, as official sources have indicated that it will be replaced by a new currency, the Turkish Lira ( TL), in January 2009. The new Turkish banknotes, which will be named the E9 Emission Group, will feature new sizes, colors, designs and security features. The usage of the YTL 1 banknote has been very limited and, therefore, there will be no TL 1 banknote. However, the new currency will feature a TL 200 banknote, according to data from the Turkish Central Bank. The use of coinage, the TL 1 coin in particular, will be promoted. The pictures adorning the surface of banknotes will also change. Important figures of Turkish culture, such as poets, writers, mathematicians, intellectuals, musicians and artists, will adorn the new banknotes. However, the central bank has not yet decided which names to be used. Yunus Emre, one of the most prominent names in Turkish literature and poetry, may grace the new banknotes. Another personality expected to be featured on the banknotes is Nene Hatun, who is known for her superhuman efforts during the Turkish War of Independence. The central bank will make its final decisions on design issues this coming autumn. “ We will see the faces of prominent Turkish historical figures on the new banknotes. These [ banknotes] will not only include those from the 14th or 15th centuries, but also some figures from contemporary history,” a senior official from the central bank noted. The TL banknotes will be designed in accordance with the most advanced security technologies. The new security measures and features to distinguish forged money will be announced to the public later. Meanwhile, the YTL 1 coin, which has been criticized because of its similarity to the euro, will also change. The new TL 1 coin will feature a new shape and alloy to prevent forgery, as the YTL 1 was easily forged. Turkey Central bank to release new currency in 2009 Peru world’s largest silver producer Second highest zinc / copper producer India Jan- June gold imports 139T, down 67 pct GIA Thailand To Grade Diamonds |