A raid on a facility producing $20 bills was the largest seizure of fake currency in the last 20 years, the force said in a news release.
"We believe that the seizure occurred before any of the counterfeit banknotes, which were in various stages of production, had been distributed," the force said.
Inspector Brian Verheul said the investigation involved the Bank of Canada and York Regional Police, north of Toronto.
"Counterfeiting continues to destabilize Canada's economy," he said.
Two men, 24 and 26, face numerous federal charges.
The RCMP said counterfeit bills are typically sold to criminal distribution networks and ultimately passed to unsuspecting individuals, merchants and financial establishments.
Canadian currency has six security features including holograms, raised ink, and color shifts seen by tilting the bill, the Bank of Canada Web site says.