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The Central Bank will assist the Ministry of Internal Affairs in combating financial fraud

The Central Bank will assist the Ministry of Internal Affairs in combating financial fraud

The State Duma adopted the amendments in the first reading, obliging the Bank of Russia to notify the Ministry of Internal Affairs of cases and attempts to make money transfers without the consent of the client.

According to one AG expert, amendments deserve attention and support, because they are aimed at protecting the interests of victims of such crimes, however, they contain significant legal ambiguity regarding the protection of legally protected secrets. Another believes, that the adoption of the bill will improve the situation with the disclosure of crimes of embezzlement of funds from the settlement accounts of citizens, whose rights are most vulnerable. The third noticed, that the amendments are organically integrated into a single trend towards the transformation of the Ministry of Internal Affairs of Russia into a body, accumulating a significant share of automated services, contributing to the investigation of crimes.
15 July, the State Duma adopted in the first reading amendments to certain legislative acts (draft law no 160028-8) regarding the assistance of the Central Bank and the Ministry of Internal Affairs of Russia in order to counteract fraudulent activities in the field of money transfers.

The amendments complement h. 44 Art. 26 of the Law on Banks and Banking Activities with the wording that, that the Bank of Russia notifies the Ministry of Internal Affairs of Russia of cases and (or) attempts to transfer funds without the consent of the client. In its turn, Art. 27 It is proposed to supplement the Law on the National Payment System with h. 8 the following content: “The Bank of Russia provides the federal executive body in the field of internal affairs with information, contained in the database, about cases and attempts to make money transfers without the consent of the client, specified in h. 5 this article, based on information, received from the specified federal executive body about committed illegal actions. Order of information exchange, the form and list of information provided by the parties are fixed in the agreement, concluded between the Bank of Russia and the federal executive body in charge of internal affairs”.

The explanatory note notes, that the currently widespread scam, related to the voluntary transfer of information by an individual (for example, payment card numbers, codes, passwords), which are used by criminals to carry out unauthorized operations, including money transfers without the consent of customers ("social engineering"), is one of the most pressing problems, negatively affecting the level of public confidence in remote payment services and, as a consequence, to the credit and financial system as a whole.

“The bill was developed with the aim of improving the information interaction between the Bank of Russia and the Ministry of Internal Affairs of Russia on issues, related to the initiation and investigation of criminal cases on the facts of fraud in the implementation of money transfers. An effective way to prevent, prevention and disclosure of crimes in the field of financial fraud with payment bank cards is the operational interaction of the Ministry of Internal Affairs of Russia with the Bank of Russia. Information exchange between the Ministry of Internal Affairs of Russia and the Bank of Russia will be carried out on the basis of bilateral agreements, which will determine the form and order of interaction. Operational information exchange is expected through the technological infrastructure of the Bank of Russia - the automated incident processing system FinCERT of the Bank of Russia", - noted in the note. The authors of the amendments also explained, that the draft law developed by them expands the list of users of the ASIO FinCERT by adding it to the list of users of the Ministry of Internal Affairs of Russia. This approach will allow, in particular, maintain the legal regime of banking secrecy.

Planned, that the amendments will enter into force one year after their official publication.

Head of the Expert Center for Criminal Law Policy and Enforcement of Judicial Acts of the Non-Governmental Organization "Business Russia", lawyer AP d. Moscow Ekaterina Avdeeva believes, that the bill is organically integrated into a single trend towards the transformation of the Ministry of Internal Affairs of Russia into a body, accumulating a significant share of automated services, contributing to the investigation of relevant crimes. “To a greater extent, law enforcement practice will be affected by the terms of agreements between the Central Bank of the Russian Federation and the Ministry of Internal Affairs of Russia, by which it will be possible to understand the nature of the transmitted information, and also whether it will be a transfer or the law enforcement agency will receive the entire service for use at its discretion. Significant simplification of access to banking information for law enforcement officers will speed up the process of investigating relevant criminal cases, Eliminate long waiting times for responses to inquiries to banks, which, Besides, may not contain information necessary for the Ministry of Internal Affairs”, she suggested.

On the other hand, according to the expert, if the draft law is adopted, certain corruption risks may additionally arise. "To level them, circle of information and employees, with access to FinCERT, must be strictly defined, and the access procedure is regulated with tracking the validity and expediency of requests”, - Ekaterina Avdeeva is convinced.

Vice-President of the Administration of Stavropol Territory Nikita Trubetskoy believes, that the bill aims to improve the information interaction between the Bank of Russia and the Ministry of Internal Affairs of Russia on issues, related to the initiation and investigation of criminal cases on the facts of fraud in the implementation of money transfers. “One of the reasons for the low effectiveness of the investigation of such acts is the inability to promptly obtain information from credit institutions. In general, this draft law deserves attention and support., because it is aimed at protecting the interests of victims of crimes, related to transfers of funds without the consent of the client", he noted.

However,, according to the expert, the bill contains significant uncertainty regarding the protection of legally protected secrets. “The transfer of relevant information by the Bank of Russia will be carried out “on the basis of information from the Ministry of Internal Affairs of Russia about committed illegal actions”. However, the procedure for exchanging information, the form and list of information provided will be determined by an interdepartmental agreement between the Bank of Russia and the Ministry of Internal Affairs of Russia, it will determine the form and order of interaction (operational information exchange is expected through an automated system). For the preparation of such an agreement and technical infrastructure, the draft law provides for a one-year deferment for the entry into force of the federal law.. I guess, that the absence in the bill of an exhaustive list of grounds (concretizing the indefinite concept specified in the project: "based on the information of the Ministry of Internal Affairs of Russia about the committed illegal actions") to send a request, as well as general information about the procedure for sending and officials (position held in the structure of the Ministry of Internal Affairs, the need for coordination with the head of the department, divisions, etc.), authorized to send a request and receive relevant legally protected information, – leaves questions about the level of protection of personal data, bank secrecy, secrets of the investigation and other secrets protected by law in the exchange of information between departments. Is the level of interdepartmental agreement on these issues sufficient?? Think, what is not. Hope, that appropriate amendments will be made during the consideration of the bill", - concluded Nikita Trubetskoy.

Managing partner, lawyer of the Criminal Defense Firm Alexei Novikov believes, that the adoption of the bill should improve the situation with the disclosure of crimes of embezzlement of funds from the settlement accounts of citizens, whose rights are most vulnerable. “One of the largest banks in the country has developed a system, allowing to detect such attempts of theft from the cards of its users. However, this project is being implemented only by the bank itself and only with its bank cards.. This bill is aimed at promptly providing information to law enforcement officers., to prevent illegal actions in relation to the property of citizens, however, only time will tell how exactly it will be applied., he thinks.

According to the expert, law enforcement officers did not have such opportunities before, since information about the accounts of citizens and transactions on them are classified as banking secrecy and are protected by the relevant law. “It was possible to get access to such data only on the basis of a court decision. Let's hope, that the adoption of such a law will favorably affect the protection of the rights of citizens, and will not be used for the sake of uncontrolled and total obtaining of information bypassing the current norms of the Code of Criminal Procedure of the Russian Federation”, - concluded Alexey Novikov.

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