The Monetary Authority of Singapore (MAS) says it plans to discontinue the issuance of the $1,000 note from Jan 1, 2021.
From now till Dec 2020, a limited quantity of such notes will be made available each month, announced the central bank on Nov 3.
The move comes as a pre-emptive measure to mitigate the higher risks of money laundering and terrorism financing associated with large denomination notes. Such notes allow individuals to carry large amounts of money anonymously and can facilitate the risk of money laundering and other activities.
MAS says the move is aligned with international norms. Major jurisdictions have similarly stopped issuing notes in large denominations.
Existing $1,000 notes will remain legal tender and can continue to be used as a means of payment. Banks can also continue to recirculate existing notes deposited with them.
MAS says it will make sufficient quantities of notes in other denominations, especially the $100 note to meet demand.
It also urges everyone to use electronic payments such as PayNow and FAST.