QUICK TAKEAWAY
Counterfeiting Currency : Creating, passing and/or possessing counterfeit money, whether banknotes or coins, is an indictable offence under s.448 of the Criminal Code and can land you in jail for up to 14 years. New innovations introduced by the Bank of Canada have made it more difficult for forgers to create counterfeit currency. Although the crime is less prevalent in recent years, it still occurs.
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What is Counterfeiting?
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.
What is Needed to Convict
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 prosecutorLawyers who prosecutes charges on behalf of the Crown 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.
Treated as a Summary or Indictable Offence
Depending on the specific charge, the Crown can proceed either as a summary convictionUsed for lesser offences or by indictable offenceIndictable offences are more-serious criminal offences. 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.
Penalties for Counterfeiting
Most charges under s.448 of the Criminal Code, such as creating or possessing counterfeit currency, carry a maximum sentence of up to 14 years in prison. Minor offences, such as defacing a coin or manufacturing fake slugs, can be prosecuted as summary convictions and have a maximum jail term of two years.
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Dahlem Findlay Law
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Glossary of Legal Terms
Crown prosecutor
Lawyers who act for the federal, provincial and territorial governments and prosecute people accused of crimes on behalf of the Crown.
Indictable offence
Indictable offences are the most serious offences under the Criminal Code and they come with more serious punishments, up to a maximum penalty of life in prison.
Summary conviction
Summary convictions are used for lesser offences with penalties, fines and short jail time. They reflect the majority of offences as defined in the Code.
