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Why is cash still king? Crime, Europol suggests

Cash is slowly falling out of favor with consumers, but is still a preferred method for laundering ill-gained profits, the European law enforcement organization says.

July 14, 2015

Europol's latest strategic report, "Why is cash still king?" indicates that while cash is slowly falling out of favor with consumers, it is still one of the preferred methods used to launder the proceeds of crime.

In the EU, the use of cash is the main trigger for suspicious transaction reports within the financial system, accounting for more than 30 percent of all reports, a Europol press release said. Reports on detections of suspicious physical cash movements represent around one-third of all contributions to Europol in the area of money laundering.

Although the use of cash for payments has experienced a moderate decline in the EU, the demand for high denomination notes not commonly used for payments has continued.

This raises questions about the purpose for which they are being used and whether this could be linked to criminal activity, the release said.

Europol Director Rob Wainwright, said that linking cash to criminal activities remains a challenge for law enforcement:

A fragmented enforcement approach at national and international levels, and the differing regulatory frameworks across the EU member states are widely exploited by criminals, who adapt their methods and routes to take advantage of these loopholes. Stepping up efforts to increase international cooperation and information exchange, and establishing a more harmonized approach among EU member states concerning cash movements within the EU, are crucial if we are to tackle these criminal activities.

The findings of "Why is cash still king?" are addressed in a set of recommendations aimed at providing practical solutions that might help prevent the use of cash for criminal purposes, and lead to a higher conviction rate among perpetrators.

The report is dedicated to Clément Gorrissen and Simon Davis of the United Nations Office on Drugs and Crime, who lost their lives in the line of duty.

Download the full report.