They propose introducing separate criminal liability for droppers and organizers of fraudulent schemes

In Ukraine, it is proposed to introduce separate criminal liability for so-called droppers, drop-drivers and organizers of schemes using bank cards and accounts. The Ukrainian Interbank Association of Payment System Members (EMA) announced the development of a draft law that provides for the addition of a new article 200¹ to the Criminal Code.

The document aims to clearly distinguish liability for the first time between persons who transfer their payment instruments for illegal transactions and organizers of such schemes.

What punishment is proposed for droppers

The draft law provides for liability for persons who knowingly transfer bank cards, accounts, electronic wallets or access to them to others, knowing that they can be used for fraudulent transactions.

For such actions, it is proposed to establish a fine of 300 to 1,000 non-taxable minimum incomes of citizens – approximately from 5 to 17 thousand hryvnias.

At the same time, liability will arise only if it is proven that the person was aware of the illegal purpose of transferring their payment instruments.

Examples of such evidence in the EMA include correspondence about using the card for “scams”, receiving a reward for transferring the card, issuing several accounts in a short time or transferring a SIM card and access to a banking application together with the card.

Stricter sanctions are provided for organizers

The draft law establishes a separate level of liability for drop-outs – persons who organize the search for account owners or buy up bank accounts for further use in fraudulent schemes.

For such actions, the following is proposed:

a fine of 17 to 51 thousand hryvnias or restriction of liberty for up to two years;
in case of repeated commission or prior conspiracy by a group of persons – up to three years of restriction or imprisonment;
for organized groups – from three to six years of imprisonment with confiscation of property.
What else does the bill propose

The document also provides for:

clarification of the rules on forgery and falsification of payment documents;
regulation of the investigation of cases related to the activities of droppers;
the possibility of extending liability to the use of crypto wallets in fraudulent schemes.

In addition, the EMA proposes to finalize the bill by providing alternative types of punishment for droppers, in particular community service or restriction of liberty, as well as the possibility of exemption from liability in the event of voluntary reporting to law enforcement information about the organizers of the scheme.

Why was there a need for a new article

The association explains that the current legislation does not allow for effective prosecution of droppers.

In particular, the article on fraud requires proving the fact of deceiving the victim, the article on money laundering requires proving the intent to conceal the criminal origin of the funds, and Article 200 of the Criminal Code mainly concerns counterfeit payment documents and cards, while droppers use real bank accounts opened in their own names.

That is why the authors of the legislative initiative propose to introduce a separate component of the criminal offense for such cases.