Norway Targets 1000-Krone Note in Crime Fight

Norway's finance ministry has formally asked the central bank to consider eliminating the 1000-krone banknote. The move aims to disrupt anonymous criminal transactions and forms part of a broader package against money laundering. Finance Minister Trygve Slagsvold Vedum announced the proposal, citing clear advice from the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime.

“It will help us combat economic crime by making it harder for criminals to pay in cash and to launder money. Denmark removed its thousand-krone note last year, and Økokrim has clearly recommended we should do the same,” Vedum stated on social media. He emphasized the proposal is one element of a larger set of anti-money laundering measures sent for public consultation.

The Criminal Cash Economy

The push to scrap the high-denomination note stems from its appeal in illicit finance. Banknotes are anonymous and untraceable, making them a preferred tool for criminal activity. In a 2023 report, Økokrim described the criminal economy as “still very much analog.” The agency's chief, Pål Lønseth, stated last December, “We know a large proportion of the cash holdings in Norway today are used in the criminal economy.”

Statistics reveal a paradox. While cash now accounts for only about 2% of the number of payments and 1% of the total value of payments in Norway, the total cash in circulation remains near 1996 levels. This discrepancy suggests significant holdings are not used for legitimate daily transactions. The head of NHO Service and Handel, Vegard Einan, has previously supported scrapping the note, arguing, “We believe the thousand-krone note should be scrapped because it is primarily used by criminals and not ordinary consumers.”

A Historic Note Faces Modern Scrutiny

The 1000-krone note has a long history in Norway. The first notes entered circulation in 1877, bearing the image of King Oscar II. Adjusted for inflation, 1000 kroner from that year would be worth approximately 81,000 kroner today. The current design, introduced in 2019, features a wave on the front and an image of the sea on the back, celebrating Norway's coastal culture.

Denmark's decision to withdraw its 1000-krone note in May 2023 provided a direct precedent for the Norwegian initiative. The finance ministry's letter to Norges Bank explicitly references this cross-border policy alignment. When questioned whether criminals would simply switch to 500-krone notes, Vedum pointed to police assessments that removing the highest denomination makes operations more cumbersome and logistically challenging for illegal networks.

Lowering the Cash Payment Threshold

Accompanying the proposal to scrap the note is a plan to drastically reduce the legal limit for cash payments. The current threshold is 40,000 kroner. The government's proposal would lower it to 10,000 kroner. This measure further restricts the ability to move large sums of physical money anonymously, targeting another avenue for money laundering and tax evasion. Together, these steps aim to squeeze the operational space for cash-dependent criminal enterprises.

Analysis: Practical Impacts and Unanswered Questions

The proposed elimination of the 1000-krone note presents a clear logistical hurdle for large-scale cash-based crime. Transporting and storing equivalent value in 500-krone notes doubles the volume and weight, increasing detection risks. This aligns with law enforcement's goal of creating friction and inefficiency in illicit markets. For the vast majority of Norwegians, who predominantly use digital payment solutions, the direct impact may be minimal. Cash use is already marginal in legal commerce.

However, the policy raises several practical considerations. What happens to existing 1000-krone notes held by legitimate citizens? A phased withdrawal, likely with a redemption period at banks, would be necessary. There is also the question of future-proofing. As physical cash use declines overall, the relative utility of any high-value note for crime may increase, suggesting this could be a first step rather than a final solution.

Furthermore, while targeting a tool used by criminals, the policy also symbolically signals the continued decline of cash as a public good. It underscores a shift towards a more traceable, digital financial ecosystem. The success of such a measure in Norway, a global leader in digital payment adoption, will be closely watched by other nations weighing similar actions. The ultimate effectiveness will depend on how well it is integrated with broader anti-financial crime strategies, including enhanced digital surveillance and international cooperation.

The Path Forward

The ball is now in Norges Bank's court. The central bank must evaluate the finance ministry's request and provide its assessment. Any decision to remove a banknote requires careful consideration of its role in the monetary system, public trust, and practical execution. The government's broader anti-money laundering package is undergoing public consultation, indicating a multi-pronged legislative approach.

Norway stands at a crossroads between its cash heritage and a digital financial future. Removing the 1000-krone note is a tangible step into that future, driven by the imperative to combat crime in an increasingly digital age. The coming months will determine if this historic banknote will become a relic of the past.