Singapore: High value bank note out of production

Singapore: High value bank note out of production

Singapore’s central bank stopped issuing $10,000 bank notes (U.S. $8,000) in July 2014 to deter money laundering. Critics complained the note was the bill of choice for bribe-payers in neighboring Indonesia.

Notes currently in circulation will remain legal tender, but stocks are expected to decline over time as worn notes are returned and not replaced, a monetary authority spokeswoman said.

“If the notes remained on the market, let’s say for five or 10 years after their production stopped, Indonesia would still be vulnerable to money-laundering and graft,” said Agus Santoso, the deputy chairman of the Financial Transaction Reports and Analysis Centre in Jakarta, according to a July 2014 report in the Jakarta Post newspaper. In Indonesia, the $10,000 note is the “bill of choice for bribe-payers or graft suspects because they can exchange a large amount of rupiah for just a few banknotes,” he added.

The bill was one of the world’s most valuable banknotes in circulation, along with the 1,000 Swiss franc note
(U.S. $1,120), Singapore’s $1,000 note and the 500 euro note (U.S. $680), according to the Standard Catalogue of World Paper Money. The highest banknote for U.S. currency is $100, and China makes do with the 100 renminbi note (U.S. $16).

Singapore, a global financial center and major player in the wealth management industry, has rejected accusations that it is a haven for money laundering and foreign tax cheats. The government has also said it is scrutinizing new forms of illicit financing such as the trade of precious stones and metals.   Agence France-Presse