It said most of the high-value 500 euro notes, worth more than £426 each, are instead being used by criminals who want to discreetly transport large quantities of cash.

An adult male can stuff and swallow 150,000 euros and 20,000 euros can be hidden in a cigarette packet.

To carry the same value of notes in pounds sterling takes up ten times the space.

One senior official at Soca's Financial Investigation Unit said an inquiry revealed 500 euro notes were inextricably tied to serious crime.

"As we developed a picture it became clear. What was previously only an anecdotal suggestion was borne out by the figures," he said.

"Our analysis found that only about 10% of 500 euro notes sold in the UK retail market were used legitimately."

Soca hopes that by taking the note out of circulation, criminal activity may be left more exposed.

The official said: "We anticipate criminals will be moved out of their comfort zone and will have to use other mechanisms for moving cash.

"They will not be able to use their favoured mechanism and that in turn will draw attention to their activities and offer up opportunities for law enforcement."

Dubbed the "bin Laden" because everyone knows what it looks like but rarely sees one, the 500 euro note was secretly withdrawn from trading around a month ago.

Officials have been watching the market for signs of criminals changing tactics and police across Europe are on alert for increased demand for other high-denomination notes.

Tourists and other legitimate customers will not be affected by the changes and the 500 euro note remains legal tender.

Ian Cruxton, Soca deputy director, said: "There is no doubt that the main UK demand for the euro 500 note comes from serious organised criminals.

"The banknote wholesalers have shown decisive leadership in withdrawing supply.

"This is a bold and welcome move which will cause substantial disruption to criminals' ability to move and launder large quantities of cash."

Source >  Yahoo News