As Valentine’s Day approaches, the Bank of Uganda (BoU) has issued a stern warning against the popular trend of “money bouquets” and other decorative cash gifts, saying that mutilating or defacing banknotes is illegal.
BoU cautioned the public, florists, and gifting businesses against gluing, stapling, or pinning Shilling notes in bouquets, cakes, or other creative displays.
“While cash gifts are welcome, currency should remain in usable condition. Damaged notes can’t be processed by ATMs and counting machines, leading to costly early replacement,” said Kenneth Egesa, BoU Director of Communications.
Why the Warning Matters
The Bank explained that physically altering banknotes:
• Makes them unusable in ATMs and counting machines
• Shortens their lifespan, forcing early withdrawal from circulation
• Increases public costs: Printing new banknotes in the 2024/25 financial year cost Shs 193.8 billion, up 11.2% from the previous year, mainly due to replacing damaged currency
Legal Consequences
Defacing currency is a criminal offence under the Bank of Uganda Act and Penal Code Act. Offenders can face:
• Up to 6 months imprisonment
• Fines starting at Shs 2,000
• Both imprisonment and fines in some cases
Businesses that knowingly participate in creating such gifts may also be held liable.
Regional Efforts
Uganda’s directive aligns with similar advisories from the Central Bank of Kenya and the National Bank of Rwanda, as East African central banks aim to protect the integrity of their currencies amid growing automation and digital payment systems.
How to Gift Cash Responsibly
BoU encourages safe and legal ways to give cash:
• Use envelopes: Keep notes flat and untouched
• Go digital: Mobile money or bank transfers are safe alternatives
• Avoid adhesives: Do not tape, pin, or fold notes in ways that cause permanent damage
“The Bank of Uganda remains committed to safeguarding the integrity of the national currency. It must continue to serve effectively as a medium of exchange and a store of value,” said Egesa.
With Valentine’s Day just days away, the BoU’s message is clear: gift love, but leave the money intact.
