Introduction
Transportation of valuable items and the cash industry have thrived for centuries. In the past, the industry used manual systems to transport and safeguard valuable products such as gold. As technology advanced and the value of products increased, the classical method and system became ineffective. Cyber security attacks, theft, fire, explosion, chemical burns and other accidents attacked the industry. This led to infrastructure and equipment upgrades and rules and regulations to guide the industry.
Cash and valuables in transit have gradually grown in the UK. The organization involves storing and sorting cash and other valuables and transportation. The government, financial organizations and retailers own the organization. The industry is essential in protecting and replenishing the money supply to smoothen business in the country and worldwide. Due to the nature of the industry, crime is a real internal and external challenge. This has led the government to devise various methods of curbing crime, for instance, wearing protective equipment, training for couriers, installing body cameras and many more to safeguard the values and cash. Moreover, the government has regulated the business to avoid customer exploitation and law-breaking by the companies and hinder the transportation of illegal substances such as drugs, illegal firearms and unregulated cash. Thus, this paper will cover more about the cash and valuables in transit in the UK, the importance of regulating the industry and how they can be regulated.
Sector Size
The CVIT industry has reached a value of approximately USD 19.6 billion globally (Expert Market Research, 2022). The industry is expected to grow more at a CAGR of 8% between 2022 and 2027 to attain a value of USD 31.1 billion by 2026 (Expert Market Research, 2022). The UK GDP is contributed significantly by service and transport industries which entail cash and valuable in transit. The service industry contributes 80% of the UK economy (Statista D. Clark & 7, 2023). On the other hand, the transportation sector contributes approximately 70.6 billion British pounds to the country’s gross value added (GVA). Hence this makes the cash and valuable transit industry significant for the UK economy. The CVIT sector employs more than ten thousand people; the estimated annual turnover is around 1.2 billion euros. Some of the UK’s top CVIT security companies include BDI Securities, Brinks, G4S cash solution, Loomis, Note Machine and Pivotal (Bsia, 2023). The more prominent players control the industry by purchasing small and medium companies. The cash and valuable in Transit (CVIT) operatives are regulated by Private Security Industry Act. Security Industry Authority regulates the private security sector in the UK. The body is responsible for regulating licensing and controlling voluntary approved contractor schemes.
Why regulating It
Cash and valuable in the transit industry are crucial for the UK economy. The industry serves both small, medium and large businesses, becoming one of the country’s economic backbones. Due to money and valuable product, transportation regulation is essential to curve fraudulent activities such as corruption, transportation of illegal products and cyber security attacks, theft and mishandling of customers’ products. Moreover, the regulation is crucial for the UK to control the operations involved in cash and valuables in transit.
It is significant to regulate the cash and valuables in transit to curb irregularities such as corruption. Some irregularities are corruption, allowing money laundering through physically transporting cash and valuable items (FATF, 2015). Physical cash and valuables transportation has provided a loophole for criminal activities such as money laundering. This is possible due to minimal supervision and restrictions on physical cash and valuable assets. The operations have made it difficult for authorities to monitor nationwide criminal activities and cash movement. For instance, the most considerable cash and valuable transportation organization, Loomis UK Limited, transports cash and valuables globally; hence it is easy for criminals to use the organization to move cash and valuables from one country to another. Hence making it crucial to regulate the transportation of cash and valuables.
Customer protection is essential in various industries, including cash and valuables in transit. Hence, it is essential to ensure customer rights are upheld by the organization that engages in transporting cash and valuable items. For example, ensuring the cash and valuables reach their destination safely, compensation of lost items and cash in case of accidents and reducing exploitation of customers by the companies. It is critical to ensure that all companies are insured to enable them to come through when there is damages, theft or accident of customers’ products, including cash. This gives customer assurance of the services, hence maintaining and attracting customers. Moreover, the government can reduce the number of complaints.
How regulating it
LICENSING
Strict follow-ups and checkups to ensure that the security firms that are involved with cash and valuables in transit are licensed. Licensing is a crucial tool the UK government can use to regulate the industry. This ensures that the business meets a certain standard, for instance, ensuring safety measures, following up set procedures, and employing trained personnel vetted by the required authority. Security Industry and Authority (SIA) are responsible for licensing organizations and people involved (GOV.UK, 2022). Hence the government can regulate the business by offering licenses to individuals and companies that meet the set standard. Regular checkup is also crucial to ensure the licensed organization meets the SIA’s obligation. Conclusively licensing can offer discipline and enforcement.
TRAINING
Training is crucial for CVIT by ensuring employees have the necessary skills, knowledge and competencies to carry out their duties effectively and efficiently with the law’s requirements (Info Channel, 2020). Training ensures risk management, incident response, professionalism and compliance with set rules.
INSPECTION
Inspection is significant to ensure the companies operate in a secure, safe manner and operate under the set regulation. Inspection can be carried out to ensure CVIT companies do not involve illegal operations and comply with the set regulation.
Conclusion
In conclusion, CVIT in the UK is a growing industry comprised of small, medium and large organizations. Hence, with the industry’s expansion, more regulation is needed to control their operation. Regulation is crucial in preventing illegal operations and controlling and protecting customers. Consequently, Licensing, inspection and training are essential in regulating the industry. If proper measures are installed, the industry can thrive efficiently and follow the set rules and regulations.
References
(2020) YouTube. YouTube. Available at: https://www.youtube.com/watch?v=QJ3B7H1pZH4 (Accessed: April 11, 2023).
Bsia (2023) Cash & valuables in transit members, BSIA. Available at: https://www.bsia.co.uk/cvit-members/ (Accessed: April 11, 2023).
Expert Market Research (2022) Global Cash in transit services market report and Forecast 2023-2028, Cash in Transit Services Market Report Size, Share, Trends 2023-2028. Available at: https://www.expertmarketresearch.com/reports/cash-in-transit-service-market (Accessed: April 11, 2023).
FATF (2015) Home, Money Laundering Through the Physical Transportation of Cash. Available at: https://www.fatf-gafi.org/en/publications/methodsandtrends/documents/ml-through-physical-transportation-of-cash.html (Accessed: April 11, 2023).
GOV.UK (2022) About Us, GOV.UK. GOV.UK. Available at: https://www.gov.uk/government/organisations/security-industry-authority/about (Accessed: April 11, 2023).
Statista D. Clark and 7, M. (2023) UK transport GVA 2022, Statista. Available at: https://www.statista.com/statistics/760118/transport-and-storage-sector-gross-value-added-in-the-uk/ (Accessed: April 11, 2023).
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