Counterfeiting Money – Legal Situation, Distinction, and Criminal Liability
Definition and Legal Classification
In legal terms, counterfeiting money refers to the production, forgery, or reproduction of means of payment with the aim of putting them into circulation as genuine money or deceiving others into believing they are genuine. This especially concerns counterfeit banknotes and coins that are either intended for circulation or appear to be legal tender.
Counterfeiting money is regulated in Germany under the Criminal Code (StGB) and is considered one of the most serious offenses against the monetary and economic order. The production of counterfeit money poses a significant threat to the integrity of economic transactions and confidence in currency systems.
Distinction: Counterfeiting, Alteration, and Circulation
For legal analysis, it is important to differentiate between various forms of the offense:
- Counterfeiting: Production of counterfeit money that imitates genuine means of payment, but does not bear official minting or issuance by an authorized entity.
- Alteration: Modification of genuine money so that it deceptively appears to have a higher value or a different identity.
- Circulation: Distribution or transfer of counterfeit or altered money into economic circulation as if it were genuine.
The focus of counterfeiting lies in the act of creating counterfeit means of payment, regardless of whether they have been used or distributed.
Criminal Law Principles in Germany
Counterfeiting Money (§ 146 StGB)
The offense of counterfeiting money is governed in Germany by § 146 of the Criminal Code. Under this provision, a person commits a criminal offense if they
- counterfeit or alter money with the intention of circulating it as genuine,
- acquire or provide themselves with counterfeit or altered money in order to circulate it as genuine,
- introduce counterfeit money into circulation as genuine.
This provision establishes counterfeiting as a separate offense alongside alteration and circulation.
Penalties
Anyone who counterfeits money is punishable by imprisonment for not less than one year. In less serious cases, the court may impose a term of imprisonment from six months up to five years. Even the attempt to commit the offense is punishable.
Dealing with Counterfeit Money (§ 147 StGB)
§ 147 StGB defines additional criminal offenses relating to handling counterfeit money. Punishable acts include, among others:
- acquiring and storing counterfeit or altered money,
- bringing counterfeit money into Germany from abroad.
This provision serves to extend protection against counterfeit money and to ensure effective prosecution even in preliminary or subsequent stages of the offense.
Preparation of Counterfeiting (§ 149 StGB)
Preparation acts—such as the production, acquisition, provision, or storage of devices and materials intended solely for counterfeiting money—are also criminalized under § 149 StGB. Liability thus extends to the preparatory stage, enabling prosecution already at the outset of production processes.
European and International Regulations
There are also European-level provisions to combat counterfeiting of money. EU Directive 2014/62/EU obliges member states to introduce minimum measures for penalizing counterfeiting. In addition, the International Convention for the Suppression of Counterfeiting Currency (“Geneva Convention on Counterfeit Currency”) establishes uniform minimum standards for criminal liability and prosecution worldwide.
Counterfeit Money – Definition and Characteristics
According to the law, money is considered counterfeit if an object is created that, from an objective perspective, is so similar to the original means of payment that it can be mistaken for genuine money. The decisive factor is whether there is a risk of confusion with legitimate currency. Money-like simulations—so-called ‘Blüten’ that are obviously not recognized as real money—may not fall under this criminal offense but can fulfill other offenses, such as fraud.
Particularities: Counterfeiting Coins
Counterfeiting does not only affect banknotes but also coins. The process of imitation, i.e., producing coins with a similar appearance, is also covered by law. Counterfeit coins are likewise included in § 146 StGB and supplementary provisions if they are intended to be circulated as legal tender.
Criminal Liability for Possession and Passing On
Ignorance of the counterfeit nature of money can exclude criminal liability, provided there is no gross negligence. However, anyone who knowingly takes possession of counterfeit money, refuses to surrender it, or knowingly uses it, typically commits a criminal offense. Intent is required in all cases.
Special Protection and Prevention Measures
To make counterfeiting more difficult, various security features are incorporated into the production of banknotes and coins. The European Central Bank and the Deutsche Bundesbank bear a particular responsibility to maintain confidence in the stability of the currency and actively combat the emergence of counterfeit money.
Sanctions and Other Legal Consequences
In addition to the realization of the main criminal offense, further sanctions such as the confiscation of counterfeit money, claims for damages in favor of the state, or civil claims in the context of fraud offenses may follow. Prosecution takes place exclusively within criminal proceedings.
Counterfeiting Money in an International Context
Counterfeiting money is recognized worldwide as a serious crime. In addition to national criminal provisions, Interpol, in particular, maintains extensive cooperation mechanisms to combat cross-border crime in this area.
Summary
Counterfeiting money involves the deceptively genuine production of banknotes or coins without legal authorization. It constitutes a serious criminal offense at the national, European, and international level, protecting both the economic system and public trust in currency law. Comprehensive legislation covers not only production, distribution, and preparatory acts but also possession and use of counterfeit money and provides for severe criminal penalties as well as extensive preventive measures.
Frequently Asked Questions
Is producing counterfeit money a criminal offense in Germany?
Producing counterfeit money, also known as counterfeiting, is a serious criminal offense under § 146 of the German Criminal Code (StGB). This provision applies both to the full counterfeiting and the alteration of genuine banknotes or coins with the intent to circulate them as genuine. It is sufficient for the perpetrator to act with the intention of making the counterfeit appear genuine; actual circulation is not required for criminal liability. Penalties range from imprisonment of not less than one year to significantly longer terms, especially in cases of organized or large-scale counterfeiting. In addition to production, possession, distribution, or smuggling of counterfeit money is also strictly prosecuted.
Are there legal differences between forging coins and banknotes?
German criminal law does not fundamentally distinguish between the counterfeiting of coins and banknotes in terms of penalties. Both forms of counterfeiting are equally punishable under § 146 StGB. The statute explicitly includes the counterfeiting of ‘paper money’ (banknotes) as well as the alteration or counterfeiting of ‘coins’ intended for circulation domestically or abroad. Even merely producing coin blanks with the intent to later forge counterfeit coins falls under this criminal provision. Depending on the circumstances, further provisions may apply, especially in cases of organized or professional counterfeiting rings.
What are the penalties for counterfeiting money in Germany?
The penalty for counterfeiting money is regulated by § 146 StGB and generally provides for imprisonment of not less than one year. In less serious cases, the court may impose a term of imprisonment from six months up to five years. The offense is particularly serious if committed on a commercial basis or as a member of a gang. In such cases, the penalty can be significantly increased. The courts also differentiate between whether the act was only attempted or whether the counterfeit money was actually put into circulation. Additionally, other offenses such as fraud or forgery may be involved in connection with counterfeiting, which can further increase the sentence.
Is mere possession of counterfeit money punishable?
Yes, mere possession of counterfeit money is punishable under § 148 StGB, regardless of whether the counterfeit was produced or merely acquired. It is a criminal offense to accept, store, or use counterfeit money for one’s own benefit—provided the person knows or at least considers it possible that the money is counterfeit. The law does not distinguish whether possession is for the purpose of circulating the false money or merely for personal use. The penalty can be imprisonment of up to five years or a fine. In aggravating circumstances, such as gang-related possession, higher penalties are also possible.
What should I do if I unintentionally receive counterfeit money?
Anyone who unintentionally receives counterfeit money, for example during a cash transaction, is legally obliged not to put it back into circulation, but to hand it in immediately to a police station or a branch of the Bundesbank. A layperson who passes on money without knowledge of its counterfeit nature cannot be held criminally liable. However, as soon as there are doubts about authenticity or suspicion of forgery, knowingly passing it on can result in criminal liability. The authorities will confiscate the counterfeit money; typically, there is no entitlement to reimbursement, as counterfeit money is considered worthless.
Are attempts and preparatory acts for counterfeiting also punishable?
Attempts to counterfeit money are also punishable under German law. § 146 paragraph 2 StGB punishes even the commencement of the act, even if the counterfeiting or alteration is not completed or the counterfeit money was not put into circulation. In addition, § 149 StGB regulates the punishability of preparing counterfeiting, such as by acquiring printing plates, papers, or other tools for producing counterfeit money. Merely possessing or producing such typical tools for counterfeiting can result in imprisonment for up to five years.
Does counterfeiting also apply to foreign currencies?
German criminal law protects not only the domestic currency (Euro or previously Deutsche Mark) but expressly includes foreign means of payment. Under § 146 StGB, counterfeiting or altering banknotes or coins that serve or are intended to serve as legal tender in Germany or abroad is punishable. The protection of the integrity of banknotes thus also extends to foreign currencies—regardless of whether they are currently used as a means of payment in Germany. This ensures comprehensive protection of international payment transactions.
