Money Laundering

We’ve probably all been there - that sinking feeling when the washing machine door locks, the cycle starts - and you remember that there may just have been bank notes in the pocket!

But all is not lost as the Bank of England, which was established in 1694, is committed to refunding or exchanging damaged notes, stating on its website: “When one of our banknotes gets damaged we will exchange it, if at least half of it remains.”

Latest statistics report that last year, 2024, £50k of cash that had been ‘washed, rinsed and spun’ was refunded, plus another £10 million of notes exchanged because they were “contaminated’ - perhaps torn, chewed by pets, damaged in water or fire. It’s a quite a startling statistic. 

What it points to also is that, despite the growth of the so-called cashless society, where credit cards and contactless payments rule the roost, millions of Brits still prefer the feel of real money in their pockets - even if they do put it in the washing machine!

Of recent times, with cost of living increases and other financial pressures, many people say that cash makes budgeting easy, while others insist it’s more secure than trusting online outlets. And for some it’s just the pleasure of the feel of a crisp tenner or £20 note in their hand.

Clearly there are many advantages to using cash but the downside can be if the notes get damaged.

Last year the total stood at £13,644,117 - which was up 46 per cent on 2023 and the highest since 2021.
The value of exchanged notes has also increased over the past three years, with £9.35 million swapped in 2023 and £8.78 million in 2022.
This came after a high of £16.24 million in 2021.

Some people may not be aware that there is process in place to help, but damaged notes can be deposited at major banks and building societies, as well as at the Post Office. They can also be sent to the Bank of England directly via post.

The Bank of England comments,“We receive thousands of claims each year from members of the public, banks, businesses and the police.”

The Bank of England has also revealed how many individual notes are in circulation, which last year totalled 4.6 billion.