ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Currency Handling) Regulations
5. Exchange of defaced notes
Edition: 2022-12-31 · In force
5. Exchange of defaced notes
(1)The Bank may exchange defaced notes where the notes—(a)have become unserviceable due to ordinary wear and tear;(b)have been mutilated, defaced or soiled accidentally; or(c)have been defaced by a licensed cash in transit operator through a cash defacement device accidentally or in circumstances of security threat or attack:Provided that the operator shall prove that the explosion occurred within the permitted use of the device under these Regulations.(2)Save for bank notes stained through use of a cash defacement device, any mutilated or defaced notes may be exchanged at the discretion of the Bank, upon presentation by the holder to the Bank, at the nearest branch or through institutions licensed by the Bank.(3)Upon receipt of mutilated or defaced bank notes under paragraph (2), the Bank may, with regard to the information provided?(a)agree to exchange the bank note;(b)defer its decision to allow for verification of the information provided; or(c)decline the application.(4)An application deferred under paragraph (3) shall be considered by the Bank and a decision made within sixty days from the date it was received and the Bank’s decision shall be final.(5)Notes stained through a cash defacement device shall be deemed to be proceeds of crime and shall be exchanged upon an application by a cash in transit operator to the Bank in Form CH 2 set out in the First Schedule.(6)A person, other than a cash in transit operator, who comes into possession of a dye-stained bank note shall not be eligible to apply for exchange but shall surrender such to the nearest police station, the Bank or any other financial institution and shall make a statement relating to the circumstances under which he came into possession of the dye-stained note:Provided that, such person shall not be deemed to have been involved in the underlying security breach, unless proven otherwise in a court of law.(7)Every person licensed to operate a cash defacement device shall, upon defacement of the cash through such device, either accidentally or through security related explosion, report the incident to the Bank within twenty four hours and shall thereafter lodge an application for replacement of the stained cash in Form CH 2 set out in the First Schedule.(8)The exchange of defaced notes under paragraph (5) shall be subject to payment by the applicant of the replacement costs prescribed in the Third Schedule.