In recent years, the availability of high quality, inexpensive scanning, image editing and printing equipment has markedly increased. Images of bank notes, once difficult to obtain, are now readily available. As the availability of images has increased, so has the risk of misuse for the purpose of counterfeiting. As a direct consequence of the widespread availability of digital imaging capabilities to the general public, the Bank of Canada has made several modifications to the images it distributes, the procedures governing who is allowed to use them and the restrictions placed on their use. This paper describes circumstances which led to the development of the Bank of Canada's image distribution policy, the library of images, and the adoption of digital watermarking technology.