Counterfeit Money Laws in Canada
Counterfeit Money Laws in Canada are designed to protect the integrity of Canadian currency and make it a serious criminal offence to manufacture, possess, distribute or knowingly use counterfeit money. Canada’s Criminal Code contains specific offences covering counterfeit currency, while the Bank of Canada provides guidance on identifying and reporting suspicious bank notes.
For anyone who handles Canadian cash, understanding the law is important. A person may receive a counterfeit note without realizing it is fake, but knowingly using or passing counterfeit money can result in criminal charges. This guide explains the main Counterfeit Money Laws in Canada, potential penalties, what possession means, and what you should do if you discover a suspicious bank note.
What Are Counterfeit Money Laws in Canada?
Counterfeit Money Laws in Canada are primarily found in Part XII of the Criminal Code. Canadian law defines counterfeit money broadly to include false coins or paper money that resemble or are intended to resemble current currency, forged bank notes, and certain genuine currency that has been altered to resemble a higher denomination.
The law addresses several different forms of counterfeiting activity. These include making counterfeit money, possessing it without lawful justification or excuse, introducing it into Canada, using it as genuine, and exporting or sending it outside Canada.
The applicable law can depend on what a person did, what they knew about the currency, and the circumstances surrounding the conduct. Anyone facing an actual criminal investigation or charge should obtain advice from a qualified Canadian lawyer.
Is Making Counterfeit Money Illegal in Canada?
Yes. Under section 449 of the Canadian Criminal Code, making or beginning to make counterfeit money is an indictable offence. The maximum penalty is imprisonment for up to 14 years.
This provision applies to the production of counterfeit money rather than simply receiving a suspicious note during an ordinary transaction. Counterfeiting can involve sophisticated production methods, but the underlying offence does not depend on the counterfeit being particularly convincing.
What Are the Penalties for Possessing Counterfeit Money?
Section 450 of the Criminal Code addresses possession and related conduct. Without lawful justification or excuse, a person can commit an indictable offence by buying or receiving counterfeit money, offering to buy or receive it, having counterfeit money in their custody or possession, or introducing counterfeit money into Canada.
The maximum penalty under section 450 is 14 years’ imprisonment.
However, receiving a counterfeit bank note unknowingly is not the same factual situation as deliberately acquiring counterfeit currency. The circumstances and evidence surrounding a person’s knowledge and conduct matter when determining whether criminal liability exists.
Is Using Counterfeit Money Illegal in Canada?
Yes. Section 452 of the Criminal Code makes it an indictable offence, without lawful justification or excuse, to utter or offer to utter counterfeit money or use counterfeit money as though it were genuine.
The same section also covers exporting, sending or taking counterfeit money out of Canada. The maximum penalty is 14 years’ imprisonment.
This means a person who discovers that a bank note is counterfeit should not simply try to spend it elsewhere. Passing the note to another person as genuine can create a significantly different legal situation from accidentally receiving it.
Can You Be Charged for Accidentally Receiving a Counterfeit Note?
Receiving a counterfeit note does not automatically mean that the recipient committed a counterfeiting offence. Someone may accept a fake note during an ordinary transaction without knowing that it is counterfeit.
The important distinction is what happens after the person becomes aware, or has reason to suspect, that the note may not be genuine. The Bank of Canada advises people who suspect that they have received a counterfeit note to give it to local police for examination. If the note turns out to be genuine, the Bank of Canada says it will be returned.
For more information about what to do after receiving suspicious currency, see our guide on counterfeit money laws and legal information.
What Should You Do If You Receive Counterfeit Money?
If you believe you have received a counterfeit Canadian bank note, do not attempt to spend it. The Bank of Canada recommends giving a suspected counterfeit note to local police. Timely reporting can help law enforcement investigate counterfeiting activity.
If you are offered a suspicious note during a transaction, the Bank of Canada recommends politely refusing it, explaining your concern, asking for another note and informing local police about a possible attempt to pass counterfeit money.
This approach is important because the person presenting the note may also be an innocent victim who did not know it was counterfeit.
How Can You Check a Canadian Bank Note?
The Bank of Canada recommends checking the security features of Canadian polymer notes. Its basic approach includes feeling the raised features, looking through the transparent window, tilting the note to examine colour-changing and metallic features, and flipping the note to compare elements on both sides.
Regularly checking notes can help individuals and businesses identify suspicious currency before accepting it. The Bank of Canada provides educational materials specifically for retailers, cash handlers and members of the public.
Counterfeit Money Laws in Canada and Businesses
Businesses that handle cash should have procedures for checking bank notes and dealing with suspected counterfeits. Retail employees, cashiers and other employees who regularly accept cash can benefit from training on Canadian bank-note security features.
The Bank of Canada states that most counterfeits enter circulation at retail points of sale and provides free training resources for retailers.
A business that discovers a suspicious note after a transaction should avoid putting it back into circulation and should provide it to local police according to the Bank of Canada’s guidance.
What Happens to a Counterfeit Note Reported to Police?
A suspected counterfeit note can be submitted to local police for examination. The Bank of Canada explains that timely reporting helps police and prosecutors respond to counterfeiting activity and track counterfeit currency in communities.
If the note is determined to be genuine, the Bank of Canada says it can be returned. If it is counterfeit, however, the person who accepted it generally bears the financial loss. The Bank of Canada states that counterfeit notes are not reimbursed.
Does Canada Have Laws Against Counterfeit Currency Images?
Canadian law also addresses the reproduction of bank-note images. The Bank of Canada explains that criminal and civil laws apply to reproductions of Canadian bank notes and that commercial users may need written permission to reproduce bank-note images.
For legitimate educational or publishing purposes, the Bank provides guidance and a non-commercial image gallery subject to specific conditions.
Frequently Asked Questions About Counterfeit Money Laws in Canada
Is counterfeit money illegal in Canada?
Yes. Canadian criminal law prohibits various activities involving counterfeit money, including making, possessing in specified circumstances and knowingly using counterfeit money as genuine.
How long can you go to jail for making counterfeit money in Canada?
Under section 449 of the Criminal Code, making or beginning to make counterfeit money is an indictable offence punishable by a maximum of 14 years’ imprisonment.
What is the penalty for possessing counterfeit money in Canada?
Section 450 provides a maximum penalty of 14 years’ imprisonment for the specified possession and related offences described in that section.
What happens if I accidentally receive fake Canadian money?
Do not attempt to spend the note. The Bank of Canada recommends giving a suspected counterfeit note to local police for examination.
Can I spend a counterfeit bill if I did not make it?
You should not knowingly use counterfeit money as genuine. Section 452 specifically prohibits using counterfeit money as though it were genuine, subject to the statutory requirements and any lawful justification or excuse.
Where should I report counterfeit money in Canada?
The Bank of Canada advises people who suspect they have received counterfeit money to give the note to their local police.
Conclusion
Counterfeit Money Laws in Canada cover the production, possession, use and movement of counterfeit currency. Sections 449, 450 and 452 of the Criminal Code establish serious indictable offences, with maximum penalties of up to 14 years for the conduct covered by those provisions.
For ordinary consumers and businesses, the safest response to a suspected counterfeit note is not to pass it on. Check the note carefully, follow Bank of Canada guidance and report suspected counterfeit currency to local police. Understanding the law can help Canadians avoid accidentally turning a suspicious bank note into a more serious legal problem.
For additional information, explore what counterfeit money laws are and learn more about counterfeit money laws and penalties explained.