UK removes 'bin Laden' euros

UK removes 'bin Laden' euros   
By Rachael Brown  Updated Fri May 14, 2010 5:18pm AEST


Money laundering experts say the note facilitates crime.

The 500 euro note, one of the largest denomination notes in the world, is being pulled from distribution in the United Kingdom.

They are known in some countries as "bin Ladens" - the bank note everyone knows exists, but few people other than criminals will ever see.

The decision comes after police linked 90 per cent of these notes in circulation to crime, tax evasion and terrorism.

The UK's Serious Organised Crime Agency (SOCA), which has been studying currency trading, has concluded the 500 euro note is at the heart of money laundering because it is so easy to move.

Organised crime and money laundering expert Jeffrey Robinson agrees that the note facilitates crime.

"If I were a money launderer or a bank robber or a counterfeiter or a drug trafficker and had a magic wand, that would be my wish, a 500 euro note. Immediately it reduces the bulk," he said.

Mr Robinson says the note's versatility also aids money launderers.

"Euros separate the money from the crime. No-one knows what country you've sold your drugs in because it could be any one of 30 countries," he said.

He says the euro is the most idiotic thing Europe has ever produced.

Nick Kochan, author of money laundering book, The Washing Machine, agrees. He says for laundering to be curbed, the note must be taken off the market throughout all of Europe.

"To me it cries out for a multinational decision across the whole of the euro zone to burn, to shred, or whatever you do to this nomination because, quite frankly, I mean Britain isn't even in the euro," he said.

"We have a lot of institutions. I mean banks and shops will take the euro, but basically this is a eurozone problem, not really a British problem."

But while the UK will be stopping the distribution of new notes, there will still be plenty of old ones in circulation.

Mr Kochan says the idea for the note was originally devised for two reasons.

"The European bank officials, the currency officials, thought there would be inflation," he said.

"And the second [reason] is they were looking to cater to a very wealthy sort of German or Belgian or French consumer who would have wanted it to go and buy his Rolex watch or diamonds in Switzerland or Berlin or somewhere."