Laos has banned the production, sale, and advertising of crafts made from kip banknotes, including money bouquets and decorative money trees, under a new directive issued by the Ministry of Industry and Commerce on 22 October.
The directive targets products made by folding, gluing, stapling, or otherwise incorporating banknotes into decorative items. It also prohibits selling or exchanging kip banknotes, particularly new notes, above their face value for profit.
Money bouquets and other cash arrangements are popular gifts at weddings, university graduations, and traditional merit-making ceremonies in Laos. Authorities say turning banknotes into decorative items damages their quality, shortens their lifespan in circulation, and undermines the dignity of the national currency.
The restrictions apply to businesses, shops, individual sellers, and online advertisements, including those posted on social media.
Penalties for Violations
The new directive refers to a decree on banknote management, issued on 31 December, 2025, which sets out penalties for damaging or misusing currency.
Under the existing rules, individuals who deliberately damage banknotes or resell new notes for profit can face fines of LAK 5 million (about USD 230). Businesses and financial institutions that violate currency-handling regulations face fines starting at LAK 10 million (approximately USD 460), with penalties doubling for repeat offences.
The Ministry of Industry and Commerce has instructed provincial and district authorities to educate businesses about the restrictions, monitor compliance, and coordinate enforcement. Violators may receive warnings, be required to undergo re-education, or face fines and other measures under existing legislation.
The Bank of the Lao PDR is responsible for issuing, inspecting, and destroying physical currency.
