New Russian laws to punish financial pyramid organizers

New Russian laws to punish financial pyramid organizers

- in All News, Regulation
Russia

Russia has made regulatory amendments, under which organizers of financial pyramids can be sentenced to up to six years in prison and can be ordered to pay hefty penalties, a notice from Kremlin’s press office indicated on Wednesday. The new rules will apply for fraudsters in cases when the collected amount from deceived investors exceeds RUB 1.5 million.

When the misappropriated sum exceeds RUB 1.5 million the case will be considered of large size, while if the amount is over RUB 6.0 million it will be an especially large offense.

Russian president Vladimir Putin signed in late March 2016 amendments to the Federal Criminal Code. The law was approved by the State Duma, or the lower chamber of the Federal Assembly, on 16 March and by the Federal Council on 23 March.

According to online financial media LeapRate, in cases when the sum of misappropriated funds exceeds RUB 1.5 million, offenders will be fined up to RUB 1 million or the income of the defendant for two years, while if the amount exceeds RUB 6.0 million, offenders will have to pay up to RUB 1.5 million or a fine equal to the income of the defendant for a period of three years. In both cases pyramid organizers can also be sentenced to corrective labor for a period of up to four years (for large amounts) or five years (for very large amounts), or receive prison sentence of up to four years (for large amounts) or up to six years (for very large amounts).

Earlier in March, President Putin signed another set of law amendments to the Russian Federation Code of Administrative Offenses, aiming to combat the creation and operation of financial pyramids. Under the law, those found guilty of administrative offenses would be liable to an administrative fine.

Source: Kremlin

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