He believes that such a measure could prevent corruption, particularly within the government.
(Photo from Facebook Page: Cesar Purisima)
Purisima noted that strategies like this have already been implemented in India, the European Union, Nigeria, and Singapore.
According to the former Finance Secretary, in 2016, India withdrew their ₹500 and ₹1000 bank notes to target black money and counterfeit cash.
In the same year, the European Union phased out their €500 note to reduce money laundering and terror financing.
In 2022, Nigeria revised the design of their high-value notes and removed them from circulation to enable banks to detect illegal transactions.
Singapore, in 2014, stopped printing their $10,000 note as a measure against money laundering.
Canada, in 2000, withdrew their $1000 bill from circulation to combat organized crime.
Purisima highlighted that testimonies from conspirators involved in anomalous flood control projects, such as engineers from the Department of Public Works and Highways (DPWH), demonstrate how easily large amounts of money can be transferred when bundled into P1000 bills.
(Photo from Taguig.com)
"They described billion-peso cash deliveries where each large suitcase of ₱1,000 bills could only contain about ₱50 million. They mentioned that a ₱1 billion cash delivery to a Congressman at the Shangrila BGC parking lot required around 20 suitcases, multiple vehicles, and massive coordination. Now imagine if the largest bill in circulation were only ₱200. That same ₱1 billion would have needed 100 suitcases, a convoy of vehicles, and a warehouse just to store the cash. The sheer impracticality would make this kind of corruption much harder to hide," stated Purisima.
Purisima suggested that to implement demonetization, the public should be given six months to exchange their P1000 and P500 bills.
They should provide a valid National ID when exchanging notes at the bank.
Any exchange amounting to and beyond ₱500,000 will need to be deposited into a bank account and reported to the Anti-Money Laundering Council (AMLC).
"This isn't foolproof. Corruption will always look for ways to adapt. But it will raise the cost, the risk, and the logistical difficulty of hiding and moving dirty money. It will also force billions currently stashed in vaults, basements, under beds and closets back into the banking system where accountability can reach it," Purisima further explained.
