Navigating from the map to the prison facilities?
In a significant move to combat financial fraud, a new law has come into effect in Russia from July, criminalizing card transactions involving "droppers" (intermediaries used to hide the origin or destination of funds) and other forms of intermediation in financial transfers.
The new law, which adds an article to the Criminal Code, imposes penalties of up to 6 years in prison and a million-ruble fine for intermediation, considered a criminal offense. The law applies to anyone, not just the original card owner, who unknowingly or knowingly facilitates such transactions.
Under the Central Bank's regulations effective from May 15, 2025, banks are authorized to limit transfers and block cards if transactions are suspected to involve fraud or suspicious intermediaries such as "droppers." Individuals added to a national list of suspicious customers face a monthly transfer cap of 100,000 rubles (about $1,280), limiting both outgoing and incoming transactions, to themselves or others.
These measures are part of the Central Bank’s anti-fraud efforts to crack down on unauthorized or deceptive card usage involving intermediaries in transactions. Violators of these restrictions could see their cards blocked and face severe transfer limits, effectively penalizing the use of droppers or illicit intermediaries in card transactions.
The operational consequence of these new laws is stringent control over transfers, with blocking and transfer caps acting as de facto penalties against those using drops or intermediaries for transactions. While the exact penalties in terms of fines or criminal charges are not detailed in the provided search results, the new law clearly indicates a tough stance against such activities.
A notable case illustrating the severity of the new law is that of the son of actor Vadim Demchog, who was recently sentenced to 2 years in prison for facilitating the withdrawal of nearly 2 million rubles stolen from a pensioner by scammers. The phrase "they made me do it" no longer works in the context of the new Russian law.
According to economist Irina Sovenko, the punishment for "dropping" is as severe as for kidnapping. Examples of accidental involvement include sending a transfer, returning a mistaken transfer, or withdrawing money for someone else. Sovenko emphasizes that even carelessness can lead to a criminal charge.
The phrase "sentenced for a transfer" was previously a joke, but now it is a reality due to the new law. The Central Bank's weakening of the ruble remains likely in August, despite high interest rates and a tight monetary policy. Experts advise hurrying to acquire dollars, as August is traditionally unfavorable for the ruble. However, potential violators of the new law should be cautious, as the penalties for involvement in transactions involving stolen money are now significantly harsher.
[1] It's important to note that the exact penalties in terms of fines or criminal charges are not detailed in the provided search results. The operational consequence of these new laws is stringent control over transfers, with blocking and transfer caps acting as de facto penalties against those using drops or intermediaries for transactions.
In light of the new law, individuals engaging in intermediation may face prison terms of up to 6 years and million-ruble fines, as intermediation is now considered a criminal offense. Additionally, those involved in such activities might encounter restrictions in finance, such as card blocking and transfer caps, as part of the Central Bank's anti-fraud efforts.
