Counterfeiting Currency

The Bank of Canada reports that due to technological innovations, large stationary presses operated by skilled printers are no longer necessary to counterfeit currency. Instead, most counterfeiting is done using colour copiers and ink-jet printers. 

The introduction of polymer bills has made counterfeiting money much more difficult, but it still happens. The $100 bill is the most commonly counterfeited polymer banknote, while the $20 bill in the older series is most often forged. The Bank of Canada estimates that 80 percent of banknotes in circulation are polymer. Police say because the new bills are a challenge to copy, they are seeing more U.S. banknotes being forged because they are easier to counterfeit and Canadians are not as familiar with the bills’ security features.

The Bank of Canada states counterfeiting can have a significant impact on businesses. For example, a store owner who operates on slim profit margins of one to two percent must sell $5,000 to $10,000 worth of goods to recoup the loss incurred through a single forged $100 bill.

According to the Criminal Code, counterfeiting includes false coin or paper money “that resembles or is apparently intended to resemble or pass for a current coin or current paper money.” If you alter a genuine coin or bill to resemble a higher-value currency, you can also face charges

You can be charged with making or attempting to make counterfeit money. Possessing counterfeit currency carries the same maximum prison sentence as actually forging it. The same punishment applies if you pass or attempt to pass fake money or export it out of the country. It is also against the law to buy, receive or offer to buy or receive counterfeit money. 

If you modify a gold or silver coin (for example, filing it to remove metal) to pass it off as a legitimate coin, you can face criminal charges. The same applies if you attempt to pass a piece of metal or mixed metals that resembles a real currency. You can also be jailed if you manufacture, sell or possess anything that can be used as a substitute for a coin or token.

Despite improved security measures, counterfeit money remains in circulation, and people unwittingly take fake bills or coins. Not realizing the money is counterfeit, you may pass it on to someone else. This does not make you guilty of a criminal offence.

If you have been passed a banknote and believe it is counterfeit, you should turn it in to the police. If it is real, it will be returned. Unfortunately, if it is fake, you will not be reimbursed. If you try to pass a bill on to someone else believing it is counterfeit, you can be charged.

To win a conviction, the Crown prosecutorA lawyer who conducts a criminal prosecution on behalf of the public. must show that the currency in question is counterfeit and that you knowingly tried to pass it off. The prosecutor must prove that you had the intent to defraud or trick another person or entity or that you had the knowledge and the tools to create the forgery. 

You could argue you did not intend to defraud or deceive anyone with the counterfeit currency. Depending on the circumstances, you could argue you did not know it was a fake or were coerced into playing a part in its production.

Your lawyer may be able to show that your rights under the Canadian Charter of Rights and Freedoms were breached during the police investigation.

Depending on the specific charge, the Crown can proceed either as a summary convictionUsed for lesser offences or by indictable offenceA more serious type of Canadian criminal offence.. Indictable offences are reserved for more serious crimes and come with much harsher sentences. In either event, a conviction will mean you have a criminal record.

Section 448 defines counterfeit money but does not create the offences or set their penalties. Making counterfeit money is an indictable offence carrying up to 14 years under s. 449. Possessing counterfeit money is addressed in s. 450, and uttering or using counterfeit money is addressed in s. 452. Offences involving instruments or materials intended for counterfeiting are addressed in ss. 458 and 459 and can also carry up to 14 years. Making or possessing counterfeit tokens or slugs and defacing current coin are separate summary-conviction offences. Where the offence section sets no separate maximum, the general penalty in s. 787(1) applies: a fine up to $5,000, imprisonment for two years less a day, or both.

The Criminal Code gives 'counterfeit token of value' its own definition in s. 448 — broadly, counterfeits of stamps or other evidence of value other than money itself. A lawyer can advise how the definitions apply to a specific item.