EUR500 IS SCRAP

0 Comments | Sunday Mirror, Jan 18, 2009 | by DARREN BOYLE

THE EUR500 note should be withdrawn because it is only used by criminals and drug dealers, an Irish MEP has warned.

The purple notes are rarely seen in shops or pubs but still make up a staggering EUR223- billon of the total amount of euros in circulation.

Fine Gael MEP Gay Mitchell warned that the high value of the EUR500 note makes it easier for criminals to transport cash across the globe to help finance their empires.

International money laundering experts have worked out that 3,220 EUR500 notes can be packed into an ordinary briefcase - worth a staggering EUR1.61million.

Many of the EUR500 notes surface in Spain, particularly in areas around the Costa Del Sol where many of Europe's top drug dealers live.

Along the Costa Del Sol, the notes are described as "Bin Ladens" because everyone knows they exist, but few can claim to have seen them.

The European Central Bank was warned 10 years ago that the massive bank notes would be used by drug dealers and criminals.

In 2000, the Canadian Authorities began withdrawing their EUR1,000 (EUR611) notes because it was being used to facilitate organised crime.

Ten years ago Otmar Issing, Chief Economist of the European Central Bank acknowledged fears that the large notes would become a boon to criminals.

He told MEPs: "We know from the movies that people operating in the black market never write a cheque - it is always cash. And if you have a higher denomination note - like the EUR500 - your suitcase is somewhat smaller."

Mr Mitchell said the ECB's governing council is now investigating the situation.