Increasing Cash Use Sparks Concerns Over Money Laundering
In its annual report for 2025, Økokrim’s Financial Intelligence Unit (FIU) has raised alarms regarding a troubling trend: a marked increase in cash deposits within banks, indicating a rising use of cash in money laundering activities. In response, Økokrim is urging businesses and individuals who are obligated to report suspicious activities to remain vigilant.
Rune Aale-Hansen, CEO of Regnskap Norge, highlights a significant development: “In 2025, we anticipate that accountants will report an unprecedented rise in suspicious activity reports to Økokrim. This is a promising sign that our industry is taking its role in the fight against financial crime seriously.”
Aale-Hansen elaborates on Økokrim’s findings: “With the escalating scope of financial crime and the increased reliance on cash for illicit purposes, we are concerned about ensuring our industry remains alert. We also call upon authorities to adopt more direct measures to tackle this issue. A concrete step would be to either abolish or severely limit cash transactions.”
1001 Measures Against Money Laundering
This January, the Minister of Finance instructed Norges Bank to explore the possibility of discontinuing the 1,000 kroner banknote as part of a broader initiative to combat financial crime. Furthermore, the Ministry has proposed lowering the cash payment threshold to NOK 10,000.
“While initiatives that reduce cash usage are crucial, a single measure will not extinguish the fire,” warns Aale-Hansen. “The government must take decisive action to impose stricter limits on cash payments.” Suggesting radical solutions, he raises the possibility of eliminating cash as a payment method altogether: “To effectively combat financial crime, cash should be phased out. However, implementing such a change demands robust digital payment solutions and contingency plans. The financial sector has been proactively addressing this, and recommendations to enhance card payment readiness were presented last year by a working group commissioned by the Ministry of Finance. Given Økokrim’s latest insights, expediting these proposals is vital.”
Savings of Up to NOK 10 Billion for Businesses
Regnskap Norge is deeply invested in fostering measures that not only prevent financial crime but also alleviate administrative burdens on businesses.
“Reducing cash usage would not only deter financial crime but could also save businesses up to NOK 10 billion in administrative costs,” Aale-Hansen emphasizes, reminding stakeholders that the authorities have already imposed stringent limits on cash transactions.
He paints a vivid picture: “Imagine it’s a sunny spring day, and you decide it’s time for a fresh haircut. You have the legal right to pay in cash, yet your hairdresser struggles to use those very bills to pay employees. As you leave the salon, you’re handed your tax return and face an unpleasant surprise: you owe back taxes, but the state has made it impossible to settle that debt in cash.”
This poignant scenario underscores the urgent need for coherent policies that balance the fight against financial crime with the realities of modern business operations. Aale-Hansen concludes with a call to action for authorities, reinforcing the necessity of thoughtful reform in this evolving landscape.