Is there an American flag on top of the Peace Tower on the $5 note in the 1986 series?

The flag that many believe to be the Stars and Stripes on the Canadian $5, $10, and $50 notes is, in fact, the Canadian Red Ensign.

The Red Ensign features the Union Jack in the top left corner. On the right, is the shield of Canada on a red background. This is not the same shield as the one used in 1867; that one bore the quartered arms of the four provinces of Canada, namely, New Brunswick, Nova Scotia, Ontario, and Quebec. As each new province joined Confederation, its coat of arms was incorporated in the shield of the Red Ensign. In 1921, however, Canada received from King George V new armorial bearings similar to those we have now. In 1924, this shield was modified by Order-in-Council, creating the shield we know today.

The Canadian Red Ensign was replaced by our current red and white Canadian flag, which features the single maple leaf. The flag was raised for the first time at the Parliament Buildings of Canada on 15 February 1965, after almost 40 years of debate on the adoption of a national flag.

In 1965, the Red Ensign can be found only on the $5, $10, and $50 bank notes, because this flag is the one that flew over the Parliament Buildings when the prime minister depicted on the face of the note was in power. The single maple leaf can be found on the $2 and $1,000 notes of the 1986 series. The $100 note features the Union Jack, and the $20 note depicts a weather vane on top of the Library of Parliament.