£50 notes to stay despite money laundering claim
Bank of England resists calls to abolish high denomination note ‘widely used by criminals’
£50 notes will not be scrapped but instead get a polymer redesign in a bid to make them more durable and harder to forge.
The announcement by the Bank of England follows growing calls to withdraw the note altogether over fears that the UK's largest denomination was widely used by criminals and rarely for ordinary purchases.
In March, a review by the Treasury found the roughly 330 million £50 notes in circulation, with a combined total of £16.5bn, were “rarely used” for routine transactions.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Treasury concluded that “there is also a perception among some that £50 notes are used for money laundering, hidden economy activity, and tax evasion”.
Peter Sands, former chief executive of Standard Chartered bank, said in a 2016 report that high-denomination notes are favoured by terrorists, drug lords and tax evaders.
Illegal money flows exceed $2 trillion (£1.4 trillion) a year, Sands said. But rather than focus on the criminals, he argued G20 countries should now target the cash itself, urging central banks to stop issuing £50, $100 and €500 notes.
Following the study, the European Central Bank announced it was to axe the €500 note, known in some circles as a “Bin Laden”, in a bid to crackdown on money laundering.
However, Robert Jenrick, exchequer secretary to the Treasury, has resisted a similar move
“People should have as much choice as possible when it comes to their money and we're making sure that cash is here to stay. Our money needs to be secure and this new note will help prevent crime” he said.
The decision to switch to polymer plastic notes will, however, “also raise questions over which famous Briton will feature on the reverse of the note”, says the BBC.
Steam engine pioneers James Watt and Matthew Boulton appear on the current £50, issued in 2011.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
UK gynaecological care crisis: why thousands of women are left in pain
The Explainer Waiting times have tripled over the past decade thanks to lack of prioritisation or funding for women's health
By Harriet Marsden, The Week UK Published
-
'The Hum': the real-life noise behind The Listeners
In The Spotlight Can some of us also hear the disturbing sound that plagues characters in the hit TV show – and where is it coming from?
By Chas Newkey-Burden, The Week UK Published
-
The Week Unwrapped: Are we any closer to identifying UFOs?
Podcast Plus, will deals with Tunisia and Kurdistan help Labour? And what next for the Wagner Group?
By The Week Staff Published
-
Are UK pensions safe?
Today's Big Question Bank of England governor says its debt market support must end – but the multi-billion-pound scheme could be extended
By Sorcha Bradley Published
-
When will paper £20 and £50 notes expire?
Business Briefing Old notes will soon be taken out of circulation by the Bank of England
By The Week Staff Published
-
What is inflation and why is it so high?
feature Smaller petrol price increases mean inflation has dipped slightly – but it remains in double digits
By Sorcha Bradley Last updated
-
Brits keeping 21 million ‘money secrets’ from friends and family, survey reveals
Speed Read Four in ten people admit staying quiet or telling fibs about debts or savings
By Joe Evans Last updated
-
Negative interest rates explained: how your finances could be affected
In Depth Money experts share their views and advice
By The Week Staff Last updated
-
London renters swap cramped flats for space in suburbia
Speed Read New figures show tenants are leaving Britain's cities and looking to upsize
By The Week Staff Published
-
Should the mortgage holiday scheme have been extended?
Speed Read Banks warn that some homeowners may struggle to repay additional debt
By The Week Staff Last updated
-
RBS offers coronavirus mortgage holidays
Speed Read Taxpayer-owned bank follows measures taken in virus-struck Italy
By The Week Staff Last updated