Russia's cash in circulation up 2.5 trillion rubles this year, prompting central bank to demand stricter bank scrutiny
Russia's central bank plans new recommendations urging banks to scrutinize the source of clients' cash more closely, after cash in circulation grew by 2.5 trillion rubles since the start of the year. Officials link the surge to unknown-origin funds and illegal cryptocurrency exchanges.
Bogdan Shablya, head of the Bank of Russia's Financial Monitoring and Foreign Exchange Control Service, announced that the central bank will soon issue new recommendations asking banks to look more closely at where clients' cash — both individuals and organizations — comes from.
According to Shablya, the central bank does not oppose cash itself, but rather opposes the circulation of cash whose origin cannot be established. He said this is why the bank provides guidance and recommendations to lenders on the matter.
New guidance to cover a wide range of areas
The recommendations will revise the typologies used to flag suspicious transactions. Shablya said the document would be comprehensive, covering individuals, organizations, deposits into accounts, and steps banks should take during currency conversions. The central bank plans to publish the document soon.
Shablya said cash of unknown origin mainly comes from wholesale and retail markets, and in particular from illegal cryptocurrency exchanges operating in Moscow.
Shift toward cash continues
According to the outlet RBC, Russia has seen a steady shift away from banks toward cash since March 2026. Central bank figures show cash in circulation has grown by 2.5 trillion rubles since the start of the year.
The shift is linked to businesses' demand for cash, partly as companies adapt to tax changes introduced in 2026.
