Why Money Launderers Love $100 Bills

Money laundering constitutes an estimated 2% to 5% of global GDP, yet current anti-money laundering (AML) regulations remain largely ineffective despite costing roughly $200 billion annually. Journalist Oliver Bullough highlights that while banks face onerous compliance requirements, criminals consistently outmaneuver these systems by utilizing cash and trade-based methods. High-denomination banknotes, particularly $100 bills, serve as the primary medium for illicit transactions, functioning as a global store of value for criminal enterprises. Beyond cash, trade-based money laundering—such as misinvoicing manufactured goods or carousel fraud—allows value to move across borders without triggering financial surveillance. Governments continue to issue large quantities of high-denomination currency, creating a paradox where the supply of physical cash grows despite its declining use in legitimate commerce, ultimately facilitating a parallel, unregulated financial system that dwarfs the reach of traditional banking oversight.