Singapore will stop issuing S$1,000 notes next year to curb money laundering risks

THE Monetary Authority of Singapore (MAS) will discontinue the issuance of the S$1,000 note from Jan 1, 2021.

From now till December 2020, a limited quantity of S$1,000 notes will still 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," the central bank said in a press statement on Tuesday.

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 S$1,000 notes that are deposited with them.

To meet demand, MAS will make available sufficient quantities of other denominations, in particular the S$100 note, the next highest denomination after S$1,000.

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It also encouraged everyone to use electronic payments such as PayNow and Fast.

MAS's move is aligned with international norms, and major jurisdictions have likewise stopped issuing large denominations in light of money laundering and terrorism financing concerns. For instance, European authorities halted the printing of the 500 euro note last year.

Large-denomination notes allow individuals to carry large values of money anonymously, and thus can facilitate illicit activities.