Organizing financial schemes using nominee cardholders carries up to six years in prison
President Volodymyr Zelenskyy has signed law No. 16013, which introduces criminal liability for the use of banking 'drop accounts' and manipulation of payment instruments. Participation in such fraudulent schemes can now lead to up to six years of imprisonment. This was reported by Ukrinform, according to the portal PromPolitInform.
The updated legislation introduces amendments to the Criminal Code and the Criminal Procedure Code of Ukraine. The document aims to protect citizens’ financial assets and combat illicit activities related to payment methods. Specifically, the issuance, forgery, and illegal use of payment cards, instructions, or electronic money have been criminalized.
Fines and prison terms
Penalties for forging payment instruments range from 3,000 to 7,000 tax-free minimum incomes or restriction or deprivation of liberty for up to four years. For illegally obtaining access to bank accounts or electronic wallets, fines of 4,000 to 8,000 minimum incomes or imprisonment of up to five years are stipulated.
The strictest sanctions are reserved for cases where the crime is committed repeatedly or by an organized group of persons based on a prior conspiracy. In such cases, the court may impose a fine ranging from 5,000 to 10,000 tax-free minimum incomes or a prison sentence of four to six years.
Liability for participants of schemes
The regulatory changes are aimed directly at ending the activities of so-called ‘drops’—nominee account owners used to facilitate fraudulent transactions. From now on, not only direct fraud but also the transfer, receipt, storage, or sale of payment cards and account data necessary to maintain illegal financial infrastructures are criminal offenses.
The law also allows for criminal measures to be applied to legal entities if offenses were committed by their representatives in the company’s interest. The document was drafted to align Ukrainian legislation with the requirements of EU Directive 2019/713 on combating fraud and counterfeiting of non-cash payment instruments.
Photo: ОП
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