Analysis of the draft law:
1. Essence of the draft law
This draft law is aimed at criminalizing the activities of so-called “fraudulent call centers” by supplementing the Criminal Code of Ukraine with a new special Article 255-4. The document introduces separate criminal liability for the creation of, leadership of, or participation in electronic communication fraud organizations. Furthermore, the draft establishes penalties for aiding, abetting the activities of such groups, and recruiting new individuals into them. Special attention is paid to the liability of officials who use their position to support or conceal the criminal activities of such structures.
2. Structure and main provisions
The draft law is structured as an amendment to the Special Part of the Criminal Code of Ukraine. Key changes include:
- Introduction of Art. 255-4: This is a special provision that distinguishes electronic communication fraud as a separate category of organized crime.
- Differentiation of liability: The severity of the penalty depends on the person’s role: from 7–12 years for organization to 5–10 years for participation or abetting.
- Criminalization of recruitment: A separate penalty (3–5 years) is provided for involving individuals in such activities, and up to 10 years for repeat offenses.
- Liability of officials: An increased sanction (8–12 years) has been introduced for officials who facilitate the operation of such organizations.
- Mechanism for exemption from liability: An incentive provision has been established for rank-and-file participants who voluntarily report the crime and cooperate with the investigation (excluding organizers).
- Definition of terms: The draft law provides a clear legal definition of an “electronic communication fraud organization,” which encompasses a stable association of three or more persons with a distribution of functions and the use of electronic communication tools.
3. Significance for legislators, business, and citizens
For various segments of society, this document carries the following impact:
- For legislators and law enforcement: A clear toolkit is provided for combating a phenomenon that was previously often qualified under general fraud articles (Art. 190 of the Criminal Code), which was less effective given the organized nature of call center activities.
- For business (in particular, the financial sector): The definition in the note to the article covers the illegal use of banking secrets and payment instrument credentials, which creates a basis for more systemic protection of clients and financial institutions.
- For citizens: The draft is aimed at strengthening protection against cyber fraud. Particularly important is the provision on holding accountable those who carry out “recruitment” or offer employment in such organizations, which should limit the dissemination of vacancies in this shadow segment.
- For experts: The creation of a separate corpus delicti, which includes the confiscation of property and special conditions for exemption from liability, is a significant shift in the approach to regulating crimes committed using high technology.
Analysis of the explanatory note:
Greeting. As a lawyer with many years of practice, I have analyzed this draft law in detail. Below I provide a structured analysis for your material.
1. Essence of the draft law
The draft law proposes to introduce a new Article 255-4 into the Criminal Code of Ukraine, which establishes special criminal liability specifically for the organization, technical support, and functioning of “fraudulent call centers.” The main innovation lies in changing the approach to qualification: the crime becomes “formal,” meaning that to hold persons accountable, law enforcement does not need to prove separate episodes of loss regarding each victim — it is sufficient to prove the very fact of the structure’s operation and the involvement of individuals in it.
2. Reasons and necessity for adoption
In the author’s opinion, current legislation is insufficiently effective in combating this phenomenon due to several key factors:
- Complexity of proof: Under the current Article 190 (fraud), the investigation must prove each specific theft, which, in the context of the cross-border activities of “call centers,” can drag on for years.
- Gaps in the qualification of organizers: Often, “technicians,” recruiters, and infrastructure owners avoid punishment because they do not formally make the fraudulent calls themselves, and general norms on complicity require complex proof of the link to each individual crime.
- Public danger: During martial law, these criminals actively speculate on topics of assistance to IDPs and the military, which requires a firm state response.
- European integration: Ukraine must comply with EU directives and international obligations (in particular, the Budapest Convention) regarding the criminalization of preparatory acts for cybercrimes.
3. Main consequences for society and business
This law will have a significant impact on various stakeholder groups:
- For law enforcement: A tool will emerge for the rapid liquidation of “call centers” at the stage of their creation, without waiting for hundreds of statements from deceived citizens.
- For business and citizens: This is a significant step toward increasing the level of financial security, as the law is aimed at destroying the infrastructure of fraudsters itself (technical administrators, recruiters), not just the “shooters” who make the calls.
- For rank-and-file “call center” employees: A mechanism for exemption from liability is introduced for those who voluntarily report the activities of a criminal group and help expose it. This is intended to act as a powerful stimulus for the collapse of such structures from within.
- For legislators and experts: The adoption of this act will eliminate a legal gap, allowing Ukraine to meet international standards for combating cybercrime.
In summary, this is an attempt by the state to move from a “reactive” response to each individual crime to a “proactive” one — the destruction of the organized structure as such.
Analysis of other documents:
1. Position of the draft law author
The President of Ukraine explicitly supports the initiative and submits it as urgent for priority consideration. This position indicates the head of state’s intention to systematically and radically overcome the problem of fraudulent call center activities, which threaten the financial security of citizens and the country’s image.
2. Key provisions and their significance
This draft law proposes to introduce a special article (255-3) into the Criminal Code, which effectively equates the activities of organized fraudulent call centers to grave criminal offenses. Here is what is worth noting:
- Rigid sanctions: The draft provides for strict punishment — from 7 to 12 years of imprisonment for organizers and leaders. This indicates the state’s intention to reclassify these crimes from the category of “ordinary fraud” to the category of dangerous criminal organizations.
- Liability of “abettors”: An important novelty is the punishment for persons who are not direct participants but provide services, information, or means (e.g., technical support, databases). This is a serious signal to business: any assistance to such organizations falls under a criminal article.
- Counteracting recruitment: The article separately criminalizes the process of involving new persons (“operators”) to work in call centers, which is aimed at destroying the human resources of such structures.
- Punishment for corrupt officials: A separate point (Part 6) provides for strict punishment for officials who facilitate the operation of call centers or help them avoid liability. This is a tool for combating the “covering” (protection) of such business by law enforcement or officials.
- Possibility of exemption from liability: To stimulate the exposure of networks, a mechanism for exemption from punishment is provided (except for organizers) if a person voluntarily informs law enforcement about the organization’s activities before being notified of suspicion.
Conclusion for business and experts: The draft law introduces a new definition — “electronic communication fraud organization.” This creates a basis for granting law enforcement broad powers in investigating activities involving the collection of personal data or banking secrets. Entrepreneurs working in the CRM, telecom, and marketing sectors should be particularly careful and ensure proper compliance so that their services are not accidentally interpreted as “abetting” the activities of fraudsters.
