What is considered defaced currency? Is defaced paper money considered legal tender? Can I get a damaged currency note replaced?

Defaced banknotes are banknotes that contain words, signs, symbols and drawings or caricatures that are either written or inscribed on the surface deliberately.

The following guidelines for the assessment of defaced banknotes should be observed:

Full value Bank Negara Malaysia will compensate full value to any piece of banknotes, which has minor defacing.

No value Bank Negara Malaysia will not compensate any value to any piece of banknote which is defaced in any significant way, for example, markings done on the portrait of the Yang di-Pertuan Agong, writing political slogans or using the banknote as a writing pad or invitation card.

Part III of the repealed Central Bank of Malaysia
Act 1958 [Act 519]

(Part III of the repealed Act shall continue to remain in full force and effect until such date to be appointed by the Minister in accordance with subsection 1(2) for the coming into operation of Part VIII of the Central Bank of Malaysia Act 2009 [Act 701])
Coins tampered with or notes defaced

25. A coin shall be deemed to have been tampered with if the coin has been impaired, diminished or lightened otherwise than by fair wear and tear or has been defaced by stamping, engraving or piercing, whether the coin shall or shall not have been thereby diminished or lightened, and a note shall be deemed to have been defaced if any word, sign, symbol, drawing, caricature, or other thing whatsoever, has been written, inscribed, or in any other manner or by any other means whatsoever has been shown on its surface, or if it is torn, marred, burnt, injured, spoilt or otherwise howsoever mutilated.

...
Refund of lost or imperfect notes or coins

27. (1) No person shall be entitled to recover from the Bank the value of any lost, stolen or imperfect note or coin or any coin that has been tampered with or any note which is defaced.

(2) The circumstances in which, and the conditions and limitations subject to which, the value of lost, stolen, or imperfect notes or coins or coins that have been tampered with or notes which are defaced may be refunded as an act of grace shall be within the absolute discretion of the Bank.

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