Q: I know it is illegal to deface and/or damage money with the intent to defraud or to force the government to replace the damaged bills with new ones. My question is: is it illegal to burn a bill beyond recognition and scatter the ashes? Since I cannot submit it to the Feds for replacement, they are out nothing. Actually, that's one less bill they have to answer for, so it's like donating money to the Government.
True or false? — Jeffrey K., Omaha, Neb.
A: Even though you may have money to burn, turning cash into ashes is a no-no, according to the U.S. Bureau of Engraving and Printing, which makes all U.S. paper currency.
Specifically, this is a violation of Title 18, Section 333 of the United States Code, which says that “whoever mutilates, cuts, disfigures, perforates, unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, Federal Reserve Bank, or Federal Reserve System, with intent to render such item(s) unfit to be reissued, shall be fined not more than $100 or imprisoned not more than six months, or both.” The law is enforced by the Secret Service.
As a practical matter, of course, money burners are not easy to catch. If you find yourself in the woods trying to start a fire, and the only paper you’ve got is cash, you’ll probably get away with the crime. Just don’t light the match if you see a guy in a black suit with sunglasses talking into his sleeve.
One big reason the government takes a dim view of destroying or defacing currency is that it has to replace it; it costs money to make money — about a nickel per note. And the demand for dollars is huge. The Bureau of Engraving and Printing produces 37 million notes a day with a face value of approximately $696 million.
As for helping out Uncle Sam, it’s not the government’s money, it's yours. Legal tender is provided by the Federal Reserve as a method of satisfying debts (see above), but unless you use it to pay taxes, the government doesn’t own those notes.
According to the Federal Reserve Bank of New York, there is about $675 billion in cash in circulation — the majority of which is outside the United States.But that amount is not fixed; it rises and falls based on the how much cash banks need to keep their ATMs stocked and keep the U.S. economy humming. (The Fed manages the supply of money by buying and selling Treasury debt from banks.)
As money circulates, the Fed takes old, tired bill out of circulation and replaces them with crisp new ones. Despite those laws against manhandling it, paper money still takes a beating. The average lifespan of a one dollar bill is about a year and a half.
FAQs
As satisfying as it might feel to set your cash aflame, in the U.S. and many other countries, burning money is generally illegal when done with currency that is still in circulation. Engaging in such behavior can result in fines and even imprisonment, especially if done on a large scale or with fraudulent intent.
Is there a law against burning money? ›
In the United States, burning banknotes is prohibited under 18 U.S.C. § 333: Mutilation of national bank obligations, which includes "any other thing" that renders a note "unfit to be reissued". In an amicus brief for Atwater v.
Can you go to jail for ripping money? ›
There are protections in place under federal law that are designed to ensure integrity of coins and currency. If you violate laws related to coins and currency, you could be charged with a federal crime and could face the potential for jail time or other serious penalties. You could also be left with a criminal record.
Is burning notes crime? ›
If a person publicly tear or destroy Indian notes, what is the punishment according to IPC? There is no punishment regarding such act in Indian Penal Code.
Why is it illegal to burn paper money? ›
Specifically, this is a violation of Title 18, Section 333 of the United States Code, which says that “whoever mutilates, cuts, disfigures, perforates, unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, Federal Reserve ...
Is it illegal to iron money? ›
You may have heard that defacing currency is a federal offense. It is only illegal if done for fraudulent purposes.
Can you cash in burnt money? ›
The Bureau of Engraving and Printing (BEP) redeems mutilated currency as a free public service.
What happens if you rip a 100 dollar bill? ›
Currency Procedures
Under regulations issued by the Department of the Treasury, mutilated United States currency may be exchanged at face value if: More than 50% of a note identifiable as United States currency is present.
Is it illegal to punch holes in pennies? ›
Notably, all forms of United States currency are protected under federal law, including paper bills and coins. Simply put, Title 18 U.S. Code 331 makes it a federal offense to fraudulently alter, mutilate, or falsify coins in the United States.
Is it illegal to write a check for less than $1? ›
Whoever makes, issues, circulates, or pays out any note, check, memorandum, token, or other obligation for a less sum than $1, intended to circulate as money or to be received or used in lieu of lawful money of the United States, shall be fined under this title or imprisoned not more than six months, or both.
The FBI's Uniform Crime Reporting (UCR) Program defines arson as any willful or malicious burning or attempting to burn, with or without intent to defraud, a dwelling house, public building, motor vehicle or aircraft, personal property of another, etc.
Is it a crime to write on money? ›
It is not illegal to write on money, but it is illegal to deface money. Defacing money includes: Changing the denomination, such as adding zeros to make the value larger. Burning, shredding, or destroying money.
Is lighting things on fire a crime? ›
Under California Penal Code Section 451 PC, maliciously setting a fire is a serious felony that can result in lengthy prison sentences, and under California Penal Code Section 452 PC, recklessly starting a fire that causes damage and/or injury is a "wobbler" that can also lead to felony charges.
Is burning money a felony? ›
As satisfying as it might feel to set your cash aflame, in the U.S. and many other countries, burning money is generally illegal when done with currency that is still in circulation. Engaging in such behavior can result in fines and even imprisonment, especially if done on a large scale or with fraudulent intent.
What happens if you burn a $100 bill? ›
Burning money is illegal in the United States and is punishable by up to 10 years in prison, not to mention fines. It's also illegal to tear a dollar bill and even flatten a penny under the weight of a locomotive on the railroad tracks.
Is it a felony to rip up money? ›
Section 331 of Title 18 of the United States code provides criminal penalties for anyone who fraudulently alters, defaces, mutilates impairs, diminishes, falsifies, scales, or lightens any of the coins coined at the Mints of the United States.
What is the illegal burning of property? ›
California Penal Code [CPC] §451 – Arson – Penal Code Section 451 makes it illegal to burn property willfully and maliciously or to aid someone else in burning property. Even the slightest singeing is sufficient for arson.
Can banks refuse damaged money? ›
Often times, even financial institutions won't accept cash if it's too damaged. This is because the Federal Reserve does not accept deposits of mutilated money from banks and credit unions.
Why is printing money illegal? ›
Counterfeit money is currency produced outside of the legal sanction of a state or government, usually in a deliberate attempt to imitate that currency and so as to deceive its recipient. Producing or using counterfeit money is a form of fraud or forgery, and is illegal in all jurisdictions of the world.
Is it illegal to write on money? ›
It is not illegal to write on money, but it is illegal to deface money. Defacing money includes: Changing the denomination, such as adding zeros to make the value larger. Burning, shredding, or destroying money.
