High-denomination banknotes, such as the US $100 bill, are increasingly viewed as tools for illicit financial activities like money laundering, corruption, and tax evasion, according to various experts and reports. While cash use for retail transactions has declined, the total value of high-denomination notes in circulation has risen, with the US dollar's value in circulation nearly doubling every decade to reach $2.4 trillion by March 2026. The $100 bill alone accounts for approximately $1.92 trillion of this total value as of 2024, with roughly half of all US banknotes held abroad by Q1 2025.
Investigative journalist Oliver Bullough, in his book "Everybody Loves Our Dollars," argues that cash, especially high-denomination dollar, euro, and pound banknotes, serves as the international currency of crime. Criminals prefer these notes for their ability to conduct transactions without the scrutiny of bank compliance officers, making it easier for drug smugglers, human traffickers, wildlife traffickers, kleptocrats, and terrorists to evade detection. Bullough contends that if the largest denomination were a $50 or $20 bill, criminals would face significantly higher logistical challenges and costs, potentially undermining their business model.
Experts like former Standard Chartered Bank CEO Peter Sands advocate for the elimination of high-denomination banknotes, including the €500, US$100, Swiss francs 1,000, and UK£50, to combat an estimated annual financial crime sum of US$2 trillion and $1 trillion in corruption globally. The European Central Bank's decision in 2016 to cease issuing the €500 note due to concerns about its role in illicit activities serves as a prominent example of policy action in this area. While existing €500 notes remain legal tender, they are no longer part of the Europa series and have not been issued since April 2019.
However, there is a counter-argument that high-denomination notes also serve as an important store of value and are in demand during crises, providing a precautionary buffer against economic instability. This perspective highlights a paradox where the legitimate use of large notes as precautionary cash coexists with growing official concerns about their exploitation for illicit finance. Despite the hundreds of billions of dollars spent annually on anti-money laundering efforts, critics argue the system is ineffective, expensive, and often discriminates against marginalized communities, failing to deter sophisticated criminals.
