British wholesalers withdraw euro note linked to criminals

The decision to end trading was made after police found nine out of every 10 of the notes in circulation are linked to crime, tax evasion and terrorism.

It closed an annual 500 million euro (424m) trade in the distinctive largest denomination euro note among businesses across the country.

The Serious Organised Crime Agency (Soca), which co-ordinated the voluntary industry move, said there is "no credible legitimate use" for the note in Britain.

Officials have been watching the market for signs of criminals changing tactics since trading secretly stopped about one month ago.

They have been expecting to see drug smugglers, people traffickers and other top-level crime gangs struggling to launder their profits as a result.

The distinctive pink and purple note is a favourite with criminals because it takes up less space than other currencies and is accepted across the continent.

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."

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

He said: "Our analysis found that only about 10 per cent of 500 euro notes sold in the UK retail market were used legitimately."