Concept and significance of distributing counterfeit money
Das Distribution of counterfeit money constitutes a criminal offense involving the act of bringing counterfeit, altered, or forged money into circulation. The aim of these actions is usually to make the counterfeit money appear as genuine legal tender and thus gain unlawful financial advantages. The offense falls under the category of currency counterfeiting crimes and is clearly regulated in Germany by the Criminal Code (StGB). The legal provisions serve to protect payment transactions and the reliability of payment instruments.
Legal basis for the distribution of counterfeit money
Criminal Code (StGB)
The main statutory provisions on the distribution of counterfeit money are found in §§ 146 to 149 of the Criminal Code (StGB).
- § 146 StGB – Counterfeiting currency: Covers the production and putting into circulation of counterfeit money.
- § 147 StGB – Preparation of counterfeiting currency: Relates to preparations for counterfeiting, such as obtaining printing plates.
- § 148 StGB – Less serious cases: Regulates the sentencing range in less serious cases.
- § 149 StGB – Counterfeiting of stamps: Protects other payment instruments such as postage stamps.
“Distribution” in particular constitutes a form of putting into circulation pursuant to § 146 para. 1 no. 3 StGB.
Definition of counterfeit money
Counterfeit money refers to any forged or altered legal tender. The following are included:
- forged banknotes or coins,
- altered genuine banknotes or coins,
- foreign and domestic currencies,
- euro- and non-euro-based means of payment (especially within the European Union),
- in a broader sense, also electronic payment instruments, as far as regulated by law.
Elements of the offense of distributing counterfeit money
Objective elements of the offense
- Counterfeit money: The money must be counterfeit, forged, or altered.
- Distribution: The counterfeit money is passed on to a third party, bringing it into circulation. This includes, for example, paying with counterfeit money at a retail store, passing it on to another person, or inserting it into machines.
- Putting into circulation: This is fulfilled as soon as the counterfeit money is passed on in such a way that the recipient regards it as genuine at first sight and is able to use it.
Subjective elements of the offense
- Intent: The perpetrator must act knowingly and intentionally, that is, he or she knows that it is counterfeit money and wants it to be used as a means of payment.
- Intent to deceive: The key factor is the aim to deceive another person about the authenticity of the money.
Sentencing range, legal consequences, and sentencing
Sentencing range
According to § 146 StGB, the penalties are:
- Imprisonment of not less than one year in the standard case.
- In less serious cases, imprisonment from six months up to five years is possible (§ 148 StGB).
Sentencing
The following criteria are decisive for the assessment of individual cases:
- Number and value of counterfeit notes/coins distributed,
- Organization and professionalism of the act,
- the degree of intent and possible repeat offenses,
- Role of the perpetrator (e.g., acting as an intermediary),
- Previous convictions of the perpetrator,
- Attempt or completion of the offense.
Attempt and completion
According to German law, the attempt to distribute counterfeit money is also punishable (§ 23 StGB in conjunction with § 146 StGB). Even the mere attempt to distribute counterfeit money is sufficient for prosecution, provided that actions are taken towards the commission of the offense.
Distinction from similar criminal offenses
- Manufacturing counterfeit money: Acts of production alone are also punishable (§ 146 para. 1 no. 1 StGB), but must be distinguished from distribution.
- Possession of counterfeit money: The mere possession of counterfeit money with the intention to pass it on is an element of the offense (§ 146 para. 2 StGB).
- Unintentional passing on: Those who act without knowledge (no intent) do not fulfill the criminal offense, but may still be held civilly liable for returning or reporting the money (§ 965 BGB).
International dimensions and cooperation
European context
The introduction of the euro and the abolition of national currencies in parts of Europe require intensive cross-border cooperation. Central banks, such as the European Central Bank (ECB), and police authorities (Europol, Interpol) cooperate with national agencies to combat counterfeit currency crime.
International agreements
Germany is legally bound under international law to the Geneva Convention for the Suppression of Counterfeit Currency (1929). In addition, the Federal Republic cooperates with international organizations for prevention and prosecution in the area of currency counterfeiting.
Investigation and prosecution measures
Police investigations
State law enforcement agencies are obliged to record and investigate relevant cases. Measures include:
- Securing evidence at the “crime scene”,
- Seizure of counterfeit money,
- Evaluation of surveillance videos,
- Cooperation with the Deutsche Bundesbank,
- Networking with international authorities.
Detection and assessment
The detection and identification of counterfeit money is regularly carried out by specialized forensic laboratories and experts of the Bundesbank. They analyze the material, printing and security features as well as the serial numbers of the notes and coins.
Prevention and education
Protective measures and responsibility
The Deutsche Bundesbank, credit institutions, and the retail trade are obliged to take appropriate control measures to prevent counterfeit money. Regular training, public awareness campaigns, and technical safeguards (holograms, watermarks) are intended to make distribution more difficult.
Assistance and duties when finding counterfeit money
Private individuals and companies are required to immediately report and hand over counterfeit money to the police or a branch of the Deutsche Bundesbank. Reimbursement of the face value is not possible, as counterfeit money does not constitute legal tender. Knowingly reintroducing it into circulation constitutes the criminal offense of distributing counterfeit money.
Literature, information, and sources
- Criminal Code (StGB), §§ 146-149
- Bundesbank – Information on counterfeit money prevention
- European Central Bank – Counterfeit prevention measures
- Geneva Convention for the Suppression of Counterfeit Currency
Summary
The distribution of counterfeit money constitutes a criminally relevant act that is rigorously prosecuted and severely penalized in Germany. The protection of currency and payment transactions is central, and international cooperation and preventive measures also play an important role. Handling, passing on, and attempting to distribute counterfeit money are prohibited under clear statutory provisions. Anyone who comes into contact with counterfeit money is obligated to report and surrender it to the responsible authorities.
Frequently asked questions
What penalties are imposed for distributing counterfeit money?
Anyone who distributes counterfeit money is liable to prosecution under §§ 146 and 147 of the Criminal Code (StGB). Penalties range from imprisonment of not less than one year up to fifteen years in particularly serious cases. Attempting the offense is also punishable, as is participation in manufacturing or smuggling. The threat of punishment increases if the act is carried out on a commercial basis or as a member of a gang. In addition, the court may impose a professional ban and order confiscation of the means used as well as the counterfeit money.
Is there a difference between distribution and merely putting counterfeit money into circulation?
Yes, criminal law differentiates between various actions: Manufacturing, acquiring, and putting counterfeit money into circulation are each separate offenses. In the legal sense, distribution means handing counterfeit money over to several people or distributing larger quantities. Merely putting money into circulation, i.e., introducing it for the first time into payment transactions (e.g., making a payment), is also punishable, but does not necessarily require mass distribution.
What happens if I accidentally pass on counterfeit money?
Legally, intent is decisive for criminal liability. Anyone who brings counterfeit money into circulation without knowledge is generally not liable to prosecution. However, as soon as there is doubt about authenticity or there is knowledge of the money’s fraudulent nature and it is nonetheless passed on or used, liability arises. Anyone who realizes they have received counterfeit money is obligated to surrender it immediately to the police or the bank.
Can I also be liable to prosecution if I “only” pass on counterfeit money without selling it?
Yes, simply passing it on—for example, as change—fulfills the legal elements of distributing under § 146 StGB if done intentionally. Gaining a benefit such as payment is not required for liability; intentional passing on, whether for payment or free of charge, is sufficient.
How are cases handled in which minors are involved in the distribution of counterfeit money?
For minors (under 18), the provisions of the Juvenile Court Act (JGG) apply. Juvenile criminal law especially provides for educational measures and mitigated sanctions. Nonetheless, distributing counterfeit money is considered a serious criminal offense even for minors and is prosecuted accordingly. For young adults (18–20 years), either juvenile or adult criminal law may apply, depending on maturity and circumstances of the offense.
What obligations do I have if I learn about persons distributing counterfeit money?
Anyone who reliably learns of the manufacture or distribution of counterfeit money is, under certain circumstances, obliged to notify the authorities pursuant to § 138 StGB. Failure to do so may, under certain conditions, lead to criminal liability for failing to report a planned criminal offense. In addition, victims may assert civil law claims for damages.
Can companies or merchants also be held criminally liable if they circulate counterfeit money?
Companies and their staff are required to recognize counterfeit money and to implement appropriate security measures. If counterfeit money is passed on, both the acting persons and the company can be held liable, in the form of fines or disgorgement of profits. Banks, exchange offices, and cash handling businesses are subject to particularly high standards of diligence. Offenses committed by employees may be attributed to the company as organizational fault (§ 30, § 130 OWiG).
