The Australian Competition & Consumer Commission (ACCC) has proposed an authorisation with conditions to the Australian Banking Association (ABA), its member banks, and other industry participants to facilitate business continuity planning in the cash-in-transit industry.
The commission also proposes to allow the parties to implement business continuity measures in case of a suspension, disruption or exit of Armaguard’s cash-in-transit services. The company currently handles 90 per cent of cash movements in the country, which total about $6 billion a week.
“It is important that the parties continue their discussions so they can resolve or avoid potential impacts to businesses and consumers across Australia should there be any disruption to Armaguard’s services,” said ACCC deputy chair Mick Keogh.
In May, the ACCC authorised – with conditions – that retailers, the ABA, the Customer Owned Banking Association, banks and other industry participants can continue developing responses to support the distribution of cash.
The move came after Armaguard expressed its concerns about its operational future in the industry, given the declining use of cash.
Last month, the ACCC granted interim authorisation with conditions to allow retailers, the ABA and banks to provide financial contributions to Armaguard. The parties previously agreed on a $50 million financial assistance over 12 months, subject to meeting monthly key performance indicators and other conditions.
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