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Kazakhstan to introduce criminal responsibility for pyramid schemes

ASTANA, December 26. /ITAR-TASS/. Kazakhstan is introducing criminal responsibility for making pyramid schemes that provides for imprisonment of the scheme masterminds and managers. The corresponding proposals are made in a bill “on the introduction of amendments and addenda to certain legislative acts of the Republic of Kazakhstan on matters of combating the financial (investment) pyramid schemes” that was adopted on Thursday in the second and final reading by the upper house of the national parliament (Senate).

“The bill is aimed at the creation of the legal framework and modernization of the legislation to step up the protection of the rights and legal interests of person and citizen, public order from unlawful acts linked with the operation of pyramid schemes,” Senator Vladimir Bobrov said.

He specified that in accordance with the amendments to the country’s Criminal Code, the organizers and managers of pyramid schemes could be fined, or sentenced to restriction of liberty for up to three years, or imprisoned for the same period with the confiscation of property. Under aggravating circumstances, the imprisonment term may reach 12 years.

The document also introduces a ban on media advertising of pyramid schemes.

The law adopted in the second reading with amendments is sent to the Kazakh president for signature.

Russia’s State Duma lower house of parliament is also considering a bill, according to which the Russian Criminal Code may be supplemented with a new article, which provides for the maximum penalty — imprisonment for 10 years with a fine of up to one million rubles, for making a pyramid scheme and management of its operation.

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