Make provision about the acceptability of Scottish banknotes throughout the
United Kingdom; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Requirement to accept Scottish banknotes
Subject to section 3, a business must not make any distinction between Scottish
and other banknotes issued in the United Kingdom in terms of acceptability as
payment for goods and services.
Powers of OFT in relation to acceptability of banknotes
A business that fails to comply with section 1 may be reported to the Office of
Fair Trading (OFT) by any person.
Upon receipt of a notification under subsection (1) the OFT may make such
investigations as it considers necessary and may inform a business of its duties
If the OFT is satisfied that a business has breached section 1 persistently, it may
issue that business with a notice requiring it to take action to comply with this
Such action may include requirements to display notices about the
acceptability of banknotes.
For purposes of subsection (3), breaches are to be regarded as “persistent” if
there is evidence of three or more such breaches in any period of twelve
Defence against forgery
Nothing in this Act constrains the right of a business to refuse to accept any
banknote which it considers is, or may be, a forgery.
If, when exercising its powers under section 2, the OFT is satisfied that the
actions of a business were taken in order to protect itself against forgery, it may
not take action under subsection (3) of that section.
For the purposes of this section, a business must have reasonable grounds to
believe that a banknote is a forgery.
This Act may be cited as the Scottish Banknotes (Acceptability in United
This Act extends to England and Wales, Scotland and Northern Ireland.