Counterfeit Money Laws in Japan

Counterfeit Money Laws in Japan impose serious criminal penalties on people who manufacture, alter, use, acquire, deliver, or import counterfeit currency for circulation. Japan’s Penal Code contains a dedicated chapter on crimes involving the counterfeiting of currency, while additional laws regulate currency imitations and similar materials.

Understanding Counterfeit Money Laws in Japan is important for residents, visitors, businesses, and anyone handling Japanese yen. The rules apply not only to counterfeit Bank of Japan notes but can also cover certain foreign currencies circulating in Japan.

What Are the Counterfeit Money Laws in Japan?

Japan’s main rules concerning counterfeit currency are found in Chapter XVI of the Penal Code. Articles 148 through 153 cover counterfeiting and altering currency, passing counterfeit currency, counterfeit foreign currency, acquiring counterfeit currency for the purpose of passing it, attempts, and preparation of equipment or materials for counterfeiting.

The Bank of Japan’s official currency-law guidance identifies these provisions and explains that making or knowingly using counterfeit Bank of Japan notes is punishable. Additional Japanese laws also restrict the manufacture and sale of objects that closely resemble genuine currency.

Is Making Counterfeit Money Illegal in Japan?

Yes. Manufacturing or altering current Japanese currency for the purpose of putting it into circulation is a serious criminal offense.

Article 148 of the Penal Code provides that a person who counterfeits or alters a current coin, banknote, or bill for the purpose of uttering it may be punished by imprisonment for life or imprisonment for a definite term of not less than three years.

The same article also applies to a person who passes counterfeit or altered currency or delivers or imports it for the purpose of putting it into circulation.

Counterfeit Money Laws in Japan and Using Fake Currency

Japan does not only criminalize the manufacture of counterfeit currency. Passing or delivering counterfeit or altered currency can also result in serious criminal liability.

Article 148(2) provides that a person who passes counterfeit or altered currency, or delivers or imports it for the purpose of passing it, is subject to the same punishment provided for counterfeiting or altering currency under Article 148(1).

This makes it important for people who discover a suspicious banknote to avoid attempting to use it elsewhere. If you suspect that a note is counterfeit, the appropriate response is to seek guidance rather than knowingly putting the note back into circulation.

What If You Receive a Counterfeit Note Without Knowing?

Receiving a suspicious banknote is not automatically the same as deliberately counterfeiting or knowingly passing it. The circumstances and the person’s knowledge can be important when determining how the law applies.

If you discover that a note may be counterfeit, do not attempt to spend it at another business. Keep it separate and contact an appropriate police station or the Bank of Japan.

For additional guidance, see our related article What Should You Do If You Receive Counterfeit Money?.

Counterfeit Money Laws in Japan and Foreign Currency

Japan’s criminal provisions also address certain counterfeit foreign currency.

Article 149 of the Penal Code applies to counterfeiting or altering foreign coins, banknotes, or bills that are used in transactions in Japan when the purpose is to put them into circulation. The provision also covers passing, delivering, or importing such counterfeit foreign currency for circulation.

The Bank of Japan explains that Japanese law includes separate provisions concerning counterfeit, altered, and imitation currency circulating in foreign countries. This means that counterfeit-currency issues in Japan are not limited exclusively to Japanese yen.

What Are the Penalties for Counterfeit Currency in Japan?

The potential punishment depends on the specific conduct involved.

Counterfeiting Japanese Currency

Under Article 148, counterfeiting or altering current Japanese currency for the purpose of circulation can result in life imprisonment or imprisonment for a definite term of at least three years.

Passing Counterfeit Japanese Currency

A person who passes counterfeit or altered currency, or delivers or imports it for the purpose of passing it, can face the same punishment under Article 148(2).

Counterfeiting Foreign Currency

Article 149 provides that counterfeiting or altering foreign currency used in transactions in Japan for the purpose of circulation is punishable by imprisonment for a definite term of not less than two years.

Acquiring Counterfeit Currency

Article 150 addresses acquiring counterfeit or altered currency for the purpose of passing it. The provision provides for imprisonment of not more than three years.

What Does Japanese Law Say About Acquiring Counterfeit Money?

Acquiring counterfeit currency can create criminal liability when the acquisition is connected with the purpose of passing the currency.

Article 150 specifically addresses a person who acquires counterfeit or altered coins, banknotes, or bills for the purpose of uttering them and provides for imprisonment of not more than three years.

This means that people should not assume that they can legally purchase or obtain counterfeit currency simply because they did not personally manufacture it.

Are Attempts to Counterfeit Money Also Punishable?

Japanese law also addresses attempts involving the offenses covered by Articles 148 through 150.

Article 151 provides that attempts to commit the offenses described in the preceding three articles are punishable. Therefore, a person does not necessarily have to successfully complete the intended counterfeit-currency offense before legal consequences can arise.

What About Equipment Used to Make Counterfeit Currency?

Japanese law also addresses preparation of equipment and materials for currency counterfeiting.

Article 153 provides a penalty for preparing implements or materials for the purpose of counterfeiting or altering currency. The provision carries imprisonment of not less than three months and not more than five years.

This demonstrates that Japanese counterfeit-currency law extends beyond completed counterfeiting and certain forms of circulation.

Can Fake Currency Images or Imitations Also Be Illegal?

Japan has additional legislation concerning objects that closely resemble genuine currency.

The Bank of Japan explains that the Act on Control of Imitation of Currency and Securities prohibits manufacturing or selling objects that closely resemble current coins, government currency, banknotes, and certain government or municipal securities. A violation can result in imprisonment of not more than three years.

Consequently, businesses and designers should be careful when creating materials that resemble actual currency, even when there is no intention to pass them as genuine money.

How Does Japan Protect Banknotes From Counterfeiting?

The Bank of Japan incorporates multiple security features into its banknotes to make counterfeiting more difficult and to help people identify genuine currency.

The current series of Bank of Japan notes includes features such as holographic elements, watermarks, intaglio printing, and other security technologies. The Bank of Japan provides information about these features through its official currency-security resources.

People who regularly handle Japanese yen can use these features as part of their normal cash-checking procedures.

What Should You Do If You Find a Suspicious Japanese Banknote?

If you believe you have received a counterfeit Japanese banknote, do not knowingly use it to purchase goods or services.

The Bank of Japan advises people who discover a suspicious banknote to report it immediately to a nearby police station or to the Bank of Japan. Its guidance also provides information about identifying the security features of genuine notes.

Keep the suspicious note separate from genuine currency and retain useful information about where and when you received it.

If you need information specifically about reporting suspected counterfeit currency, see our related guide Where Should You Report Counterfeit Money?.

Can a Bank Exchange Counterfeit Money in Japan?

A suspected counterfeit note should not be treated like an ordinary genuine banknote. If you believe a note is suspicious, you should report it to the appropriate authority rather than attempting to exchange or spend it elsewhere.

The Bank of Japan’s guidance specifically instructs people who find suspicious notes to notify a nearby police station or the Bank of Japan.

Whether a particular genuine but damaged banknote can be exchanged is a separate issue from the treatment of counterfeit currency.

Counterfeit Money Laws in Japan for Businesses

Businesses that regularly accept cash should establish procedures for checking banknotes and responding to suspicious currency.

Employees should know how to recognize the basic security features of genuine Japanese banknotes and should understand what to do if a suspicious note is discovered.

Businesses should also avoid returning a suspected counterfeit note to circulation simply because they want to recover its face value.

For broader business guidance, our article on Counterfeit Money Prevention for Businesses explains practical measures businesses can use to reduce counterfeit-currency risks.

Counterfeit Money Laws in Japan Compared With Other Countries

Counterfeit-currency laws differ significantly between countries. Japan’s Penal Code contains specific provisions covering manufacturing, passing, acquiring, and preparing materials for counterfeit currency.

Japan also has separate rules covering foreign currency and objects that closely resemble genuine currency. This means visitors, companies, and international businesses should not assume that the rules from their home country apply in Japan.

When a suspected counterfeit note is discovered, the safest approach is to follow the Japanese reporting process rather than attempting to resolve the matter privately.

Frequently Asked Questions

Are Counterfeit Money Laws in Japan Strict?

Japan imposes serious criminal penalties for counterfeiting and passing counterfeit currency. Article 148 allows for life imprisonment or imprisonment of at least three years for specified counterfeiting and passing offenses.

Is Making Fake Yen Illegal?

Yes. Counterfeiting or altering current Japanese currency for the purpose of circulation is prohibited under Article 148 of the Penal Code.

Is Using Counterfeit Money Illegal in Japan?

Knowingly passing counterfeit or altered currency can result in criminal liability. The Bank of Japan specifically states that making or knowingly using counterfeit Bank of Japan notes is punishable.

What Should I Do If I Accidentally Receive a Counterfeit Yen Note?

Do not knowingly spend or pass the suspicious note to another person. Keep it separate and report it to a nearby police station or the Bank of Japan.

Can Foreign Counterfeit Currency Be Covered by Japanese Law?

Yes. Article 149 addresses counterfeit or altered foreign currency that is used in transactions in Japan, including passing, delivering, or importing it for circulation.

Final Thoughts on Counterfeit Money Laws in Japan

Counterfeit Money Laws in Japan cover the manufacture, alteration, passing, acquisition, and preparation associated with counterfeit currency. Japanese law also addresses certain foreign currencies and objects that closely resemble genuine currency.

The potential criminal consequences can be severe, particularly for people who manufacture counterfeit currency or knowingly put counterfeit notes into circulation. Anyone who discovers a suspicious Japanese banknote should avoid using it and follow the reporting guidance provided by the Bank of Japan or local police.

For additional information about whether suspected counterfeit currency can be exchanged, read Can You Exchange Counterfeit Money?.

Because Japanese laws and their translations can change, anyone facing an actual legal matter should consult a qualified legal professional in Japan and review the current official Japanese legislation.