A design error means the affected notes won’t technically be valid until the Validation Bill passes through the Legislative Assembly.
According to the Currency Regulations 2025 – which specifies the wording of notes that are legal tender – the new notes are to include the wording “this note is legal tender for the payment of any amount” but the printed notes say “these notes are legal tender for the payment of any amount.”
The series index and serial number are supposed to appear at the left hand top corner and at the right hand bottom corner. The new notes only contain this information at the right hand top corner.
The proof supplied by the printer De La Rue shows the series index and serial number twice on the note which the Financial Secretary Pat Clunie, one of the Commissioners of Currency, says was changed when the proof note was brought down at the end of January.
“The change removed the index and serial number from the bottom left corner on the reverse of the banknote as it obscured the penguin silhouette and didn’t look correct,” said Mr Clunie.
The Financial Secretary continued that “the legislative change required for the new notes was finalised in April/May and it was missed that it still made reference to needing the index and serial number to appear twice on the banknote.
“In addition, during the final drafting the statement on the front “These notes….” was changed to “This note….”, arguably better English but was not on the note or in the existing legislation and these two mistakes were not picked up before the legislation was passed in June.”
The Bill to validate the notes, which have been in circulation since August 14, has been published in a Gazette Supplement and will go before the Legislative Assembly at the end of this month.
Amendment regulations are expected to be made at the same time which will deal with the problem by “not being as prescriptive regarding the features that appear on the notes.”
Any Bills affecting currency of the Falkland Islands also have to receive permission from a UK Secretary of State, according to Annex A to the Constitution. On this the Attorney General says:
“Strictly speaking, the Currency Notes Validation Bill is not about issuance of notes. The notes have already been issued and no change is being made with the notes. Just correcting a compliance error.
“Further down paragraph 5 (of Annex A) allows that Governor to assent to the Bill and then transmit a copy to the Secretary of State together with reasons for assenting.
“The law is flexible and allows the Governor’s assent to be given to the Bill.”
Mr Clunie says any new notes will be printed to the specification in the amended Currency Regulations 2025 and “These have been made less prescriptive to allow for any future design changes to be easily accommodated.”
