Internal Affairs Department Initiates Criminal Proceedings Against "Drovovod"
In a recent development, a criminal case has been opened under part 6 of article 187 of the Criminal Code of the Russian Federation, targeting individuals involved in the illegal practice known as "drop" activity. These accounts or wallets receive and transfer funds that are often linked to electronic payment fraud or money laundering.
Under Russian law, drop activities are treated as a suspicious transaction pattern subject to regulatory and criminal repercussions. The amended federal "National Payment System" law and anti-money laundering (AML) provisions empower banks and regulators to monitor, restrict, and block transactions and accounts involved in suspicious activity.
Banks are legally required to track and block suspicious transactions, such as those involving multiple senders/recipients, high-frequency transfers, operations without economic purpose, or accounts with no prior relationship—all common features of drop schemes. Failure to block such transactions leads to the bank’s liability for reimbursing victims if fraud occurs.
Russian authorities have been actively tracking and restricting payment details and cryptocurrency wallets linked to illegal activities, including drop accounts. According to recent reports, they have detected and restricted more than 600 payment details and over 1,800 cryptocurrency wallets.
Individuals or entities using drop accounts risk having their accounts blocked partially or fully, losing access to banking services, and possibly facing criminal charges if the accounts are found to facilitate fraud, money laundering, or other crimes. This affects not only outright fraudsters but also ordinary crypto users who may unknowingly engage in such flows via peer-to-peer trades or exchanges flagged as “high-risk”.
The suspect in this case has been charged for facilitating electronic payment fraud through drop accounts. It is reported that drops are people who open accounts for personal use and then hand them over to fraudsters. The maximum penalty for this crime is six years in prison.
In a recent development, a person has been detained for buying and reselling electronic payment methods for criminal activity. The suspect was traced through the testimony of another drop. Amendments were made to article 187 of the Criminal Code regarding illegal turnover of means of payment.
In a move to encourage cooperation, a law signed by President Vladimir Putin on June 24 provides for the right to be exempt from criminal responsibility for drops if they assist in the investigation. A person who has committed a crime for the first time and is a bank client can be exempt from criminal responsibility if they assist in the investigation.
These actions are part of Russia’s broader anti-fraud and AML efforts, targeting not only drop accounts but also larger laundering networks involving cryptocurrency swap services and dark web financial schemes.
- The suspect's charge in this case involves facilitating electronic payment fraud through drop accounts, as per the recent amendments made to article 187 of the Russian Criminal Code regarding illegal turnover of means of payment.
- Beyond targeting drop accounts, Russia's anti-fraud and anti-money laundering (AML) efforts also aim to dismantle larger laundering networks involving cryptocurrency swap services and dark web financial schemes, as part of a broader strategy.
