A bill to combat financial pyramids was introduced to the State Duma

Senators and deputies introduced a bill to the State Duma to combat financial pyramids, should from the Duma electronic database.

The project, according to the explanatory note, is necessary in connection with the intensification of the activities of financial pyramids.

It is proposed to amend the law “On consumer cooperation (consumer societies, their unions) in the Russian Federation” and the law “On the protection of the rights and legitimate interests of investors in the securities market.” Parliamentarians proposed prohibiting consumer cooperatives from raising borrowed funds from persons other than shareholders, as well as establishing restrictions on attracting investments from individuals.

“[Сейчас] the lack of status of a financial organization is not a limitation for carrying out activities to raise funds. <...> Thus, countering the activities of financial pyramids cannot be sufficiently effective due to the lack of legislative restrictions on attracting funds and (or) other property of citizens,” the authors explain.

The initiative was introduced by Vice Speaker of the Federation Council Nikolai Zhuravlev, senators Anatoly Artamonov, Mukharbiy Ulbashe, as well as Chairman of the State Duma Committee on the Financial Market Anatoly Aksakov, Deputy Oleg Savchenko and others.

September 26 Zhuravlev announced introducing a bill into the lower house. He stated that violation of the ban could be punishable by a fine of up to 1 million rubles. or suspension of activities for up to 90 days. The next stage, according to Zhuravlev, is the possibility of introducing criminal liability.