Five European countries for 500 euro banknotes

This summer, five European countries – Italy, Belgium, the Netherlands, Spain and France – sent a position paper, that is, a document summarizing a position on a subject, to make a series of requests. Among these measures, he made 500 euros of banknotes illegal and raised the ceiling on cash payments to 5,000 euros, compared to 10,000 euros proposed by the Commission’s anti-money laundering regulations package last July, which was announced. Establishment of the European Anti-Money Laundering Authority.

As written this week The 24 single substrateThe five countries’ request is specifically aimed at curbing money laundering and tax evasion, of which the €500 note is a frequent instrument. The issue has returned to the topic of the hour again because in these days European institutions have begun to evaluate proposals in this area, and the preparations for the tripartite, that is, informal negotiations between the Commission, the European Council and the European Parliament, have begun. .

The main points of discussion relate to the cash circulation ceiling (which in Italy is already two thousand euros, which is less than we are talking about) and the role to be assigned to the Anti-Money Laundering Authority: whether to make it a simple control process or assign it to more active supervisory tasks. Italy would be more preferable to this second option, and is also pressing for the seat of power to be entrusted to the city of Milan. On this the ABI (Italian Banking Association) has Express request for support Prime Minister Mario Draghi.

It has long been known that criminal organizations use 500 euro banknotes to launder money from illegal activities, so much so that since 2019, the European Central Bank has I stopped printing it. However, it still has legal value and can therefore be exchanged in a bank in smaller denominations, at least for the time being. in a position paperAnd quoted from 24 single substrateThe five countries that called for the ban wrote that “the latest statistics at the end of February 2021 show that 400 million banknotes are still in circulation with a total value of 200 billion euros.”

The document goes on to ask the Commission to “engage with the European Central Bank to consider further steps on the €500 note, including the introduction of phase-out to allow for a gradual transition by the public to smaller banknotes under the supervision of banks and central banks.”

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