18 U.S.C. § 472: Counterfeit Currency Penalties and Forfeiture

Violating 18 U.S.C. § 472 is a federal felony that carries up to 20 years in prison, a fine of up to $250,000, or both. Those 18 USC 472 penalties apply not only to someone who passes a counterfeit bill but to anyone who utters, publishes, sells, imports, possesses, or conceals a fake U.S. obligation or security with intent to defraud. A conviction also brings mandatory restitution to victims and forfeiture of the counterfeit notes and any equipment used to produce them.¹

The Conduct That Triggers a § 472 Charge

Section 472 reaches several distinct acts, and each one independently qualifies as a felony when done with intent to defraud.¹

Passing a counterfeit note during a transaction, such as paying for groceries with a fake $20.
Uttering or publishing a counterfeit instrument by presenting it as genuine or putting it into circulation.
Selling counterfeit notes to a buyer, even one who knows the money is fake. The sale itself is the offense.
Importing counterfeit instruments into the United States with intent to use or distribute them.
Possessing or concealing counterfeit currency when there is evidence of a plan to use it fraudulently.

Attempts count too. Trying to pass a fake bill and failing is enough for a § 472 charge to stick.

Prosecutors often add charges from neighboring statutes. Someone who prints the bills and then spends them can face charges under both 18 U.S.C. § 471 (manufacturing) and § 472, each carrying its own 20-year ceiling.² Possessing plates, digital scans, or electronic images of currency with intent to use them for counterfeiting is a separate Class B felony under § 474, with a maximum sentence of 25 years — potentially longer than the passing offense itself.³

The Intent-to-Defraud Requirement

Every conviction under § 472 requires proof that the defendant acted with intent to defraud. That element is what separates a felon from someone who unknowingly received a fake bill in change.¹

Prosecutors rarely have a confession. Intent usually comes out of circumstantial evidence: making several small purchases to break a fake bill into real change, hiding notes from officers, possessing a large quantity of counterfeits, or keeping printing equipment nearby. The quality of the counterfeit matters as well. A stack of novelty-store props is a very different case from a set of high-quality reproductions with a distribution plan.

Genuine ignorance is a defense: if you did not know a bill was counterfeit when you spent it, the mental state for a conviction is missing. Willful blindness, however, can satisfy the intent requirement. A person who deliberately avoids asking questions about a suspiciously cheap bundle of cash may still be found to have acted with intent to defraud.

Prison Time and Fines

Section 472 authorizes imprisonment of up to 20 years, a fine, or both.¹ The fine ceiling for an individual comes from 18 U.S.C. § 3571, which caps felony fines at $250,000.⁴

Actual sentences depend on the Federal Sentencing Guidelines. The guidelines set a base offense level for counterfeiting and then adjust it upward based on factors like the face value of the counterfeits, whether the defendant manufactured them, whether counterfeiting equipment was involved, and prior criminal history. Someone caught passing one fake $20 at a convenience store will face a very different sentence from someone running an operation that produced hundreds of thousands of dollars in fake notes.

Either way, the conviction is a permanent federal felony record. That carries long-term consequences for employment, voting rights, and firearm ownership.

Restitution to Victims

Federal courts can order mandatory restitution to anyone who lost money because of the counterfeiting scheme. Under 18 U.S.C. § 3663A, a defendant convicted of a fraud-based property offense must repay the value of the property lost or destroyed, using whichever is greater: the value at the time of the offense or the value at sentencing.⁵ The court may also order reimbursement for a victim’s lost income and expenses tied to participating in the prosecution.

Forfeiture of Counterfeit Notes and Equipment

Under 18 U.S.C. § 492, all counterfeit notes, printing plates, paper, ink, and other equipment used in a counterfeiting operation are forfeited to the United States.⁶ Refusing to hand over counterfeiting materials when a Treasury agent asks for them is a separate misdemeanor punishable by up to a year in prison. A person whose property was seized may petition the Secretary of the Treasury for relief, but only if the forfeiture happened without willful negligence or any intent to break the law.

What Counts as a Protected Obligation or Security

The 20-year penalty reaches well beyond paper bills. Under 18 U.S.C. § 8, an “obligation or other security of the United States” includes:⁷

Federal Reserve notes, the standard paper currency in circulation.
Treasury notes and certificates of indebtedness.
U.S. bonds and bond coupons.
Gold and silver certificates.
Stamps and other representatives of value, including postage and revenue stamps.
Checks and drafts drawn on U.S. officers.

Forging a Treasury bond or a government check exposes a person to the same § 472 penalties as printing fake $100 bills. Counterfeiting a foreign government’s currency inside the United States is a separate offense under § 478, also carrying a 20-year maximum.⁸ Counterfeit coinage above five cents falls under § 485, with a 15-year ceiling.⁹

How Long Prosecutors Have to Charge

Federal prosecutors have five years from the date of the offense to bring counterfeiting charges. The deadline comes from the general federal statute of limitations for non-capital offenses, 18 U.S.C. § 3282.¹⁰ Once five years pass without an indictment, the government can no longer prosecute that specific conduct. For an ongoing operation, though, the clock restarts with each new act: every fake bill passed or shipment imported opens a fresh five-year window.

If You Receive a Counterfeit Bill

If you suspect a bill you received is counterfeit, do not try to spend it and do not return it to the person who gave it to you. Knowingly passing a fake note, even one you received innocently, can expose you to a § 472 charge.

Contact your local police department or the nearest Secret Service field office, especially if you can describe the person who passed the bill or provide other useful details. Hold onto the note and turn it over with whatever information you have.¹¹ Banks and other financial institutions that encounter suspected counterfeits without investigative leads submit them directly to the Secret Service Counterfeit Currency Processing Facility on form SSF 1604, with one form per note.¹² If the note is confirmed counterfeit, it will not be returned and the holder will not be reimbursed. Whoever holds the fake bill when it is identified absorbs the loss.

1
Office of the Law Revision Counsel. 18 USC 472 – Uttering Counterfeit Obligations or Securities
2
Office of the Law Revision Counsel. 18 USC 471 – Obligations or Securities of United States
3
Office of the Law Revision Counsel. 18 USC 474 – Plates, Stones, or Analog, Digital, or Electronic Images for Counterfeiting Obligations or Securities
4
Office of the Law Revision Counsel. 18 US Code 3571 – Sentence of Fine
5
Office of the Law Revision Counsel. 18 US Code 3663A – Mandatory Restitution to Victims of Certain Crimes
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Office of the Law Revision Counsel. 18 US Code 492 – Forfeiture of Counterfeit Paraphernalia
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Office of the Law Revision Counsel. 18 USC 8 – Obligation or Other Security of the United States Defined
8
Office of the Law Revision Counsel. 18 US Code 478 – Foreign Obligations or Securities
9
Office of the Law Revision Counsel. 18 USC 485 – Coins or Bars
10
Office of the Law Revision Counsel. 18 US Code 3282 – Offenses Not Capital
11
U.S. Secret Service. Reporting Suspected Counterfeit Currency to the United States Secret Service
12
United States Secret Service. SSF 1604 Suspected Counterfeit Note Submission Form