Senate adopts amendments to law imposing criminal liability for organizing financial pyramids

12:26, 26 December 2013

ASTANA. December 26. KAZINFORM - The Senate of the Parliament of the Republic of Kazakhstan at the plenary session in second reading has considered the draft law "On amendments and additions to some legislative acts of the Republic of Kazakhstan concerning counteraction of financial (investment) of the pyramids."

"The bill seeks to establish a legal framework and modernization of legislation to increase the level of protection of rights and legitimate interests of citizens, public order against unlawful acts relating to the activities of financial pyramids", said Vladimir Bobrov, the Senator who was making the presentation.

According to him, the Criminal Code introduced responsibility for creation and management of a financial scheme. Organizers and leaders can be fined, or restricted freedom for up to 3 years, or deprived of liberty for the same term and confiscation of property. Aggravated term of imprisonment is up to 12 years.

The concept of "financial investment pyramid" is being invented, that is the activity to extract revenue from fundraising individuals and legal entities without use of borrowed funds for entrepreneurial activities providing commitments by shifting these assets and wealth accumulation of some participants due to contributions of other participants.

In addition, there will be a ban on advertising of financial pyramids in the media.

Parliament (Qurultay) Senate