The role of EUR 500 notes in connection with money laundering

Lavrentios Lavrentiadis

The €500 note has long been associated with money laundering, illicit financial activities, and tax evasion due to its high value and ease of transport. Here’s an overview of its role in money laundering and cash transactions:

Why Was the €500 Note Popular for Money Laundering?

  1. High Value, Low Bulk: A stack of €500 notes worth €1 million weighs only 2.2 kg and can fit into a small briefcase, making it ideal for discreet movement of large sums.
  2. Difficult to Trace: Unlike digital transactions, cash is untraceable, which facilitates illegal transactions without leaving a financial paper trail.
  3. Use in Criminal Networks:
    • Drug trafficking groups used it for cross-border cash transfers.
    • Terrorist organizations exploited it for financing.
    • Corrupt officials and tax evaders used it for offshore hidden funds.
  4. Limited Circulation in Daily Life: Unlike smaller banknotes, the €500 bill was rarely used for legal purchases, increasing suspicion of its role in illicit finance.

Crackdown and Phase-Out

  • 2016: The European Central Bank (ECB) announced the discontinuation of the €500 note, citing its role in financial crime.
  • 2019: Most EU central banks stopped issuing new €500 bills, though existing ones remain legal tender.
  • Countries like the UK and Switzerland have imposed strict regulations on large cash transactions.

Current Status & Money Laundering Implications

  • Although discontinued, €500 notes are still in circulation and often hoarded.
  • Many have resurfaced in criminal investigations, especially in money laundering schemes in Spain, Germany, and Switzerland.
  • Authorities have increased scrutiny on large cash deposits and cross-border cash movements.

Alternative Methods Used by Criminals

  • With the phase-out of €500 notes, criminals have shifted to:
    • Cryptocurrencies (Bitcoin, Monero, etc.).
    • Hawala-style informal money transfers.
    • Smaller-denomination cash smuggling.
    • Luxury assets (art, jewelry, real estate).

There is no publicly available evidence that Lavrentios Lavrentiadis was involved in the bribery of judges or in money laundering.

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