Ukraine wants to strengthen responsibility for “drop accounts”: Rada supports bill

The Verkhovna Rada adopted as a basis Bill No. 16013, aimed at strengthening the protection of Ukrainians’ bank accounts from cyber fraud. The document provides for criminal liability for illegal transactions with payment instruments, as well as for transferring or gaining access to bank accounts for use in criminal schemes.

The bill provides for amendments to the Criminal and Criminal Procedure Codes of Ukraine. Its purpose is to strengthen the fight against illegal actions with bank and payment accounts, electronic wallets, payment instruments and personal data for access to them.

What is proposed to be changed

In particular, it is proposed to reword Article 200 of the Criminal Code. Liability will be provided for illegal actions with payment instructions, messages, orders, payment instruments and other means of access to bank and payment accounts and electronic wallets.

This includes, among other things, their theft, appropriation, obtaining by fraud or abuse of trust, and acquisition in another illegal way.

It is also proposed to supplement the Criminal Code with a new article 200¹.

It should establish criminal liability for the transfer, receipt, purchase, storage, or other acquisition of payment instruments or accounting information, as well as providing access to a bank account or electronic wallet, if this is done for the purpose of fraud or another criminal offense.

Combating “drop accounts”

The draft law pays special attention to the so-called “drop accounts”. These are bank accounts, access to which is transferred to third parties and which can be used to conduct illegal financial transactions.

According to the data provided by the Verkhovna Rada, law enforcement agencies record the systematic use of nominal payment account networks in economic crime, drug crime, and cybercrime schemes.

The proposed amendments to Article 200 and the new Article 200¹ of the Criminal Code are aimed at counteracting such schemes.

The draft law has not yet entered into force

The draft law No. 16013 has currently been adopted only as a basis, so the proposed norms are not yet effective legislation. Before final adoption, the document must undergo further consideration in the Verkhovna Rada.

The initiative is also related to the adaptation of Ukrainian legislation to European norms in the field of combating fraud and counterfeiting of non-cash payment instruments.