Police warn euro notes may make crime easier

Europol, the European Union law enforcement agency, has warned that the existence of a € 500 bill - worth approximately $425 - could lead to a rise in money laundering after the introduction of euro notes and coins in January.

"Law enforcement authorities fear that especially high denominations (of € 200 and € 500) may facilitate the process of money laundering," Europol said in a report.

"During the change-over period an increase in suspicious transactions is foreseen," it added.

In 11 out of the 12 eurozone countries, the highest-value euro banknote - the € 500 - will be worth more than the biggest domestic note.

In Luxembourg, where the most valuable banknote is 5,000 francs, the € 500 will be equivalent to 20,117 francs. In Greece, the € 500 will be worth 17 times the highest drachma note.

The highest denomination of the US dollar in general circulation - the currency of choice for organised crime - is $100, equivalent to € 125.

"If you were to design a system to facilitate money laundering, then the large euro note would be what you would design," said Michael Levi, professor of criminology at Cardiff University.

Officials at the European Central Bank, which is co-ordinating the changeover to the euro, say six countries - Austria, the Netherlands, Finland, Belgium, Italy and Germany - already have banknotes worth about € 200 or more.