Singapore to stop issuing S$1,000 note to reduce money laundering risk

Singapore to stop issuing S$1,000 note to reduce money laundering risk

singapore 1000 one thousand dollar note file changing hands
File photo of a S$1,000 note. (Photo: Marcus Mark Ramos)

SINGAPORE: Singapore will stop issuing S$1,000 notes from Jan 1 next year to reduce money laundering and terrorism financing risks, said the Monetary Authority of Singapore (MAS) on Tuesday (Nov 3).

From now until December, a limited quantity of S$1,000 notes will be made available each month.

"This is a pre-emptive measure to mitigate the higher money laundering and terrorism financing risks associated with large denomination notes," said MAS, noting that large denomination notes allow individuals to carry large values of money anonymously.

"The move is aligned with international norms and major jurisdictions have already stopped issuing such large denomination notes."

READ: Singapore steps up scrutiny of shell firms to combat money laundering

Existing S$1,000 notes in circulation will remain legal tender and can continue to be used as a means of payment. Banks can continue to recirculate existing $1,000 notes that are deposited with them, MAS said.

It added that other denominations will be made available "in sufficient quantities" to meet demand, particularly the S$100 note which is the next highest denomination.

The public is also encouraged to use electronic payments such as PayNow and FAST.

READ: MAS ‘closely studying' reports on 'FinCEN' leak that mentioned Singapore banks in suspicious transactions

Singapore stopped issuing S$10,000 notes in 2014, then one of the world's most valuable banknotes.

“The development of more advanced and secured electronic payment systems has reduced the need for large value cash-based transactions," MAS deputy managing director Ong Chong Tee had said.

Source: CNA/Reuters/jt(cy)

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