Why Money Launderers Love $100 Bills | Odd Lots

Global money laundering accounts for an estimated 2-5% of global GDP, yet current regulatory frameworks remain largely ineffective. While digital payments dominate daily life, the circulation of high-denomination currency, particularly the $100 bill, continues to reach record highs, providing criminals with a liquid, anonymous tool for moving illicit wealth. Beyond cash, trade-based money laundering—the misinvoicing of luxury goods, industrial equipment, and commodities—functions as a massive parallel financial system that often bypasses traditional banking oversight. Journalist Oliver Bullough highlights that the current "know your customer" (KYC) compliance regime imposes massive costs on financial institutions without significantly hindering criminal networks. These networks increasingly integrate cash with stablecoins to move value instantaneously across borders, exploiting jurisdictional arbitrage and the lack of international coordination among central banks to maintain their operations.