A Question About Burning Money - CPLEA.CA

Question of the month from the Garvie Reading Room:

Is it against the law to burn or otherwise damage Canadian currency? Canadian currency consists of both coins and bank notes (the proper name for paper money), and the law treats coins differently from bank notes. The law for coins is quite specifically spelled out in the Currency Act (R.S.C., 1985, c. C-52) Section 11 (1):

“No person shall, except in accordance with a licence granted by the Minister, melt down, break up or use otherwise than as currency any coin that is current and legal tender in Canada.”

This Act also spells out the penalties for doing so. As if that was not enough, the Criminal Code of Canada (R.S.C., 1985, c. C-46) also has a relevant section:

“456. Every one who

(a) defaces a current coin, or

(b) utters a current coin that has been defaced,

is guilty of an offence punishable on summary conviction.

(By the way, isn’t this an interesting use of “utters”? In this particular section, “utters” means to use for payment or to sell.) The law regarding bank notes is very different. Neither the Bank Act nor the Criminal Code says anything about mutilation or defacement of bank notes. Before you start scribbling on those twenties in your wallet (or burning them up for that matter), there are some important reasons why you should not damage bank notes. Writing on bank notes may interfere with the security features. As well, damage reduces the lifespan of the notes, which increases costs because then they have to be replaced more frequently. Markings on notes may also prevent them from being accepted in transactions. Furthermore, it is generally thought that marking or damaging bank notes is inappropriate because Canadian paper money is a symbol of our country and source of national pride. The production of bank notes is one of the main roles of the Bank of Canada. If you do encounter damaged or mutilated bank notes, a free redemption service is offered. In the end, how many of us actually have “money to burn”? Photos by Caitlin Thompson at http://www.flickr.com/photos/kittycanuck/