Norway's proposed removal of high-value banknotes is sparking debate, with law enforcement pushing to scrap the 500 kroner note. It is the large bill they seize most often from criminal environments. The head of Norway's financial crime unit has expressed understanding for the finance minister starting with the 1000 kroner note. Yet he argues there are no good reasons to keep the nation's second-highest value bill in circulation. His comments add a new layer to the government's plan to phase out cash for large transactions.
The Law Enforcement Viewpoint
The director of the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime, PĂ„l LĂžnseth, is clear in his assessment. He stated the 500 kroner note is a large bill and the one authorities see the largest seizures of in criminal circles. LĂžnseth said the need to keep the 500 kroner note in circulation should also be evaluated. This position puts a sharper focus on the role of physical cash in facilitating illegal activity. The argument centers on making high-value transactions more difficult and conspicuous for criminals.
Voices from a Criminal Past
Two former criminals with experience in high-profile operations have weighed in. Their insights provide a ground-level view of how such a policy might work in practice. Erling HavnÄ, who was convicted for his role in the infamous 2004 Nokas armoured car depot robbery, believes removing the notes will create obstacles. He notes that criminals will arrange for euros or other payment methods. Yet when large bills disappear, everything becomes more cumbersome. HavnÄ's role in the Nokas robbery was to smash the back window of the building with a sledgehammer. He was sentenced to 16 years in prison.
He points out that weight and volume are the obvious reasons criminals often prefer high-value notes. If the most valuable bills vanish, it will become harder to transport large sums. It becomes more awkward, he said. The more hindrances there are, the better it will be. HavnÄ has long since left crime behind. After a period working as a caretaker, he has retired and now lives in a cabin outside Arendal.
The Limits of the Policy
Both former criminals highlight a significant limitation. They believe the measure will have little effect on the truly large and organised criminal networks. The big criminals use bitcoin or other payment methods, HavnÄ acknowledged. It could still be a start, and you can probably limit some crime by removing both the 1000 and 500 kroner notes. He reflected on his past, stating the large bills were very significant when it came to transport. It is simpler to transport large bills that use less space.
Ghulam Abbas, the former leader of the so-called B-gang, shares this perspective. Today he works as a community outreach worker, lecturer, and author. He also does not believe that removing either the 1000 or 500 kroner note will affect criminal environments significantly. He points out that the euro undoubtedly plays a bigger role when it comes to transport and money laundering. It is all about space, so it is a simple calculation, Abbas said. The advantage is also that there is less control from here and down through Europe.
The Shift to Digital and Foreign Currency
The testimony from these individuals points to a rapid adaptation strategy already in use by sophisticated operations. Abbas also noted that large sums are probably handled digitally, through services he has no knowledge of. This underscores a key challenge for authorities. Closing one physical avenue may simply accelerate a shift to harder-to-trace digital currencies or the use of foreign banknotes. The European euro, with its high-value bills and cross-border circulation within the Schengen area, presents a ready-made alternative. Preparedness is an important reason why cash exists in society, according to the sources. This suggests any policy must account for systemic needs beyond crime fighting.
A Clumsy Hurdle or Effective Barrier?
The debate reveals a split in expectations. Law enforcement sees the removal of high-value domestic notes as a necessary step to increase friction for illegal transactions. They aim to make moving large amounts of illicit cash physically harder and more detectable. The former criminals agree it would add a logistical hurdle, describing future operations as more clumsy or awkward. However, they are sceptical of the ultimate impact on serious, organised crime. These networks are already ahead, using cryptocurrencies, digital payment services, or stable foreign currencies like the euro.
The policy may therefore have a two-tiered effect. It could disrupt smaller-scale criminal operations and individual actors who rely on domestic cash for its convenience and anonymity. For larger syndicates with international connections, it might be little more than a minor inconvenience. They have the resources and networks to pivot to other methods immediately. The discussion continues as Norway weighs the everyday utility of cash against its misuse. The future of the 500 kroner note now hangs in the balance, caught between practical commerce and the fight against crime.