Yes, they are scratch and sniff. Each denomination has it's own aroma, among them maple syrup, Canadian bacon and Moose Head beer.
I doubt they would call it "Canadian bacon" as that is basically an US invention, also called Irish bacon. I believe the similar Canadian product is traditionally called 'Peameal bacon'
No, not really. They're pulling your leg. The 'scratch and sniff/maple syrup' myth is just one of those internet rumors. Google it.
Canadian notes, being printed on a polymer material, are water proof. Don't run them through a dryer cycle, though. They'll shrink up to nothing.