Volodin proposes making transfers abroad an aggravating factor in economic crimes
In short
State Duma Chairman Vyacheslav Volodin said on 8 October that moving money abroad in connection with proven criminal acts should always be an aggravating circumstance in indictments and court sentences for all economic crimes. He noted that the Criminal Code already covers illegal transfers abroad in Articles 193 and 193.1, but said the fact of moving funds to other countries is not taken into account as a separate qualifying feature in other economic crimes such as fraud and embezzlement.
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State Duma Chairman Vyacheslav Volodin said on 8 October that the transfer of money abroad linked to proven criminal acts should always be treated as an aggravating circumstance in economic crime cases, according to RIA Novosti, Vedomosti and Kommersant. [ 1 , 2 , 3 ]
"It would be right if, in preparing indictments and in court sentences for all types of economic crimes, the transfer of funds abroad linked to proven criminally punishable acts were always an aggravating circumstance," Volodin said. RIA Novosti reported that he wrote this in his channel and asked readers, "What do you think?" Vedomosti said the statement was reported on the website of the lower house of parliament. [ 1 , 2 ]
Volodin noted that the Russian Criminal Code already contains several offences related to the illegal transfer of money abroad, set out in Articles 193 and 193.1, which cover evasion of the repatriation of funds and the transfer of money to non-residents using forged documents. [ 1 , 2 , 3 ]
He said there are known cases of other economic crimes, including fraud, embezzlement and the legalisation of money or other property obtained through crime, that were accompanied by transfers to foreign accounts, according to RIA Novosti and Vedomosti. RIA Novosti quoted him as saying that the fact of moving funds to other countries is not taken into account as a separate qualifying feature. Kommersant reported his view that such transfers are often a consequence of fraud, embezzlement or the legalisation of criminal proceeds, and that the act of moving funds abroad is not properly considered. [ 1 , 3 ]
Vedomosti gave background figures: on 30 September the Bank of Russia said suspicious operations with signs of moving money abroad fell 35% in the first half of the year to 5.5 billion rubles, while total suspicious cash-out and transfer-abroad operations fell from 32 billion to 20.9 billion rubles over the period. [ 2 ]
Vedomosti also noted that on 17 August Moscow's Cheremushkinsky District Court sentenced Sergei Petrov (Сергей Петров), founder of Rolf (Рольф), in absentia to nine years in a penal colony in a case over moving about 4 billion rubles abroad. He was found guilty of currency operations transferring funds to non-residents' accounts using forged documents. [ 2 ]
Why it matters
The proposal comes from the head of the lower house of parliament and concerns how prosecutors and courts treat capital moved abroad in economic crime cases. The documents do not say whether a bill has been drafted, so its legal effect remains to be seen.
Key facts
- State Duma Chairman Vyacheslav Volodin proposed that moving money abroad in connection with proven criminal acts always be treated as an aggravating circumstance. [ 1 , 2 , 3 ]
- The proposal covers indictments and court sentences for all types of economic crimes. [ 1 , 2 , 3 ]
- Articles 193 and 193.1 of the Russian Criminal Code cover evasion of the repatriation of funds and transfers of money to non-residents using forged documents. [ 1 , 2 , 3 ]
- Volodin said fraud, embezzlement and the legalisation of criminal proceeds can also involve transfers to foreign accounts. [ 1 , 2 ]
- According to Volodin, the transfer of funds abroad is not counted as a separate qualifying feature in such other economic crimes. [ 1 ]
- The Bank of Russia reported on 30 September that suspicious operations with signs of moving money abroad fell 35% in the first half of the year to 5.5 billion rubles. [ 2 ]
Confirmed by several sources
- Vyacheslav Volodin proposed treating the transfer of money abroad as an aggravating circumstance in economic crime cases. [ 1 , 2 , 3 ]
- Articles 193 and 193.1 of the Criminal Code currently cover illegal transfers of funds abroad. [ 1 , 2 , 3 ]
- Volodin cited fraud, embezzlement and the legalisation of criminal proceeds as economic crimes that can involve transfers of money abroad. [ 1 , 2 , 3 ]
Still unclear
- Whether a bill or formal amendment will follow the proposal. None of the documents mention a draft law, a timetable or any response from the government or courts.
- How Volodin characterised the link between moving money abroad and other crimes. RIA Novosti and Vedomosti report he said such crimes can be accompanied by transfers abroad, while Kommersant reports he said such transfers are often a consequence of fraud, embezzlement or laundering.
- Where the statement was first published. RIA Novosti says Volodin wrote it in his channel on an online platform it does not name in the readable text, while Vedomosti says it was reported on the State Duma website.