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Putin Orders Tighter Control Over Russians’ Finances
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Russian leader Vladimir Putin has ordered Rosfinmonitoring, the country’s financial watchdog, to step up scrutiny of suspicious transactions inside Russia, The Moscow Times reported on November 5.
He claimed that foreign criminal networks and intelligence agencies pose a threat to the country’s financial stability by using tools such as cryptocurrency and alternative payment systems to conceal underground transfers and involve young people in illegal schemes.
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Putin directed the intelligence body to anticipate these threats before substantial damage occurs, urging broader implementation of advanced analytical software and artificial intelligence models.
The directive comes as state authorities consistently increase financial oversight across the country. These regulatory shifts have resulted in widespread account freezes, card suspensions, tighter restrictions on foreign currency, and increased barriers to cryptocurrency transactions, The Moscow Times reported.
In September, Rosfinmonitoring submitted a proposal allowing banks to pause operations if a client’s personal details partially match records of individuals with frozen assets, with account access restored after five days unless restrictions are formally extended.
Earlier in the summer, legislation was enacted enabling commercial banks to hold outgoing money transfers for up to six hours if the activity triggers internal suspicion flags.
This expansion of state control over personal accounts comes against the backdrop of Russia’s skyrocketing war spending, which has put unprecedented pressure on the nation’s federal budget.
In 2026, Russia’s war spending surged to approximately 17 trillion rubles ($200 billion)—nearly matching the record level originally planned for 2027—after Putin ordered a sharp increase in the defense budget.
The new figure represented a roughly 40% jump over the Russian government’s initial 2026 budget plan. Putin reportedly directed the nearly $60 billion spending boost after the Kremlin concluded that negotiations involving US President Donald Trump would not end the war on terms acceptable to Moscow. As a result, defense spending accelerated rapidly, pushing Russia’s projected 2026 federal budget deficit past 7 trillion rubles ($82 billion).
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