Ninety per cent of 500 euro notes are linked to crime
The five hundred euro note has been withdrawn from sale by British bank
wholesalers following concerns that they are fuelling organised crime.
The five hundred euro note has been withdrawn from sale by British bank wholesalers following concerns that they are fuelling organised crime.
The decision to take the banknote out of UK currency exchange facilities was made after police discovered 90 per cent of the notes in circulation were linked to crime, tax evasion or terrorism.
The Serious Organised Crime Agency (SOCA), which coordinated the voluntary industry move, said there was no credible legitimate use for the note in Britain.
Officials have been watching the market for signs of criminals changing tactics since trading secretly stopped about one month ago. They had been expecting to see drug smugglers, people traffickers and other top-level crime gangs struggling to launder their profits as a result.
The distinctive pink and purple note is favoured by criminals because it takes up less space than other currencies and is accepted across the continent. At current exchange rates, the 500 euro note is worth about £430 more than eight times the UKs most valuable banknote, the £50 note.
One senior official at SOCAs Financial Investigation Unit said an inquiry revealed that the 500 euro notes are inextricably tied to serious crime.
He said: As we developed a picture it became clear. What was previously only an anecdotal suggestion was borne out by the figures. Our analysis found that only about ten per cent of 500 euro notes sold in the UK retail market were used legitimately.
The note will continue to circulate in other EU countries and is still legal tender. Criminals are expected to adapt by using the 200 euro note instead, but as there are fewer of them in circulation they are easier to track.