S’pore to stop issuing S$1,000 notes as ‘pre-emptive’ move against money laundering, terrorism financing: MAS
Large denomination notes — which allow individuals to carry large amounts of money anonymously — can facilitate illicit activities, Singapore's central bank said.
SINGAPORE — From January next year, Singapore will stop issuing S$1,000 notes to reduce the risk of them being used for money laundering or terrorism financing.
In a statement on Tuesday (Nov 3), the Monetary Authority of Singapore (MAS) said that such large denomination notes — which allow individuals to carry large amounts of money anonymously — can facilitate illicit activities.
It added that the move is a “pre-emptive measure to mitigate the higher money laundering and terrorism financing risks associated with large denomination notes”, and is “aligned with international norms”.
In 2014, Singapore discontinued issuing S$10,000 notes for similar reasons. At the time, the notes were one of the highest-value denominations in the world.
Major jurisdictions such as the United States and Eurozone countries have also scrapped large denomination notes.
From now until December, a limited quantity of S$1,000 notes will be made available each month, MAS said.
Any S$1,000 notes in circulation will remain legal tender and can continue to be used as a means of payment. Banks can also continue to recirculate existing S$1,000 notes that are deposited with them.
Sufficient quantities of other denominations — in particular the S$100 note, which is the next highest denomination — will be made available in order to meet demand.
Members of the public are encouraged to use electronic payments such as PayNow, MAS said.
