Euro and cybercash may aid launderers

Speakers at the International Conference Group meeting on money laundering have warned that the introduction of the euro, coupled with money transfers over the internet, are boons to money launderers. Senior investigator with Britain’s customs and excise, Eamon Kearney, explained “The euro is of concern to us because it will allow large amounts of cash to flow across borders…with no need to convert from one currency to another”. Concern was also expressed over the large denomination of notes as after the introduction of the cash euro there will be notes as large as €500, whereas, in comparison, Britain’s largest note is only £50 (€82). This would allow launderers who want to convert drugs profits into cash, to conceal large amounts in a small space, rendering the euro as useful as other currencies with large denomination bills, such as Dutch guilders or the Swiss franc. Moreover, Mr. Kearney that the euro would have the major advantage of being usable in any European country that has switched to the currency. Other speakers at the conference claimed that the internet, with its ease of setting up online bank accounts and the ability to move money around with so-called ‘Smartcards’ now facilitated transfers of profits from drugs deals and other illegal activities.