Central Bank Issues Warning: Defacing Currency Could Lead to Six-Month Jail Term
Central Bank warns individuals against defacing or misusing currency, emphasizing potential six-month jail terms as outlined in the Penal Code. Bank of Uganda specifically cautions against using banknotes for decorative purposes, highlighting the financial implications for both the public and the Central Bank due to the destruction of banknote utility.
Individuals found defacing or in possession of mutilated notes may be subject to a six-month imprisonment, as admonished by recent communications from the Central Bank.
The public is strongly advised against engaging in actions that compromise the integrity and value of the currency.
In accordance with Section 367 of the Penal Code Act, individuals who melt down, break, or deface currency by stamping names, words, or marks on it could face a six-month jail term upon conviction.
The Bank of Uganda (BoU) has specifically cautioned florists, designers, gifting stylists, and their clientele against utilizing banknotes and coins in the creation of decorative arrangements.
According to Kenneth Egesa, the Director of Communication at BoU, the misuse of banknotes often involves affixing new bills together using pins, cello tape, or other adhesives during social events.
Egesa highlighted that the defacing and misuse of banknotes have financial implications for both the public and the Central Bank. He stated, “This practice renders banknotes unusable in cash processing and distribution equipment, such as counting machines and Automated Teller Machines (ATMs), which are crucial components of the cash distribution system. Additionally, it leads to the premature withdrawal from circulation and replacement of banknotes at an avoidable cost to the public.”
