Financial Crime World

Criminal Code of Russia: Crimes Against Financial Security

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The Criminal Code of Russia has identified several types of financial crimes that threaten the security and stability of the country’s financial system. These crimes can be broadly categorized into three main areas:

Crimes against the Securities Market

  • Article 185, 1853, and 1856 of the Criminal Code define crimes related to:
    • Manipulation of securities prices
    • Illegal trading
    • Other fraudulent activities in the securities market

Crimes against Budget Revenues

  • Articles 183, 186, and 187 outline crimes such as:
    • Tax evasion
    • Fraud
    • Embezzlement committed by individuals or organizations

Crimes against Financial Security

  • Article 39 and 41 of the Criminal Code address crimes that cause harm to financial security in the public finance sector, including cases of:
    • Extreme necessity
    • Reasonable risk

Characteristics of Financial Crimes

Financial crimes are characterized by their deliberate nature, with intent being a mandatory element in most cases. The acts committed may be carried out through various means, including:

  • Use of authority
  • Instruction
  • Manipulation of others

Complicity and Co-Execution

Co-execution is not common in financial crimes, particularly those involving special subjects such as heads of organizations. However, some financial crimes allow for expanded co-execution, with participants carrying out part of the objective side of the crime.

Causing Harm to Financial Security

Causing harm to financial security in public finance is often committed under circumstances of:

  • Extreme necessity
  • Reasonable risk

These circumstances are explained by the need to select competing goals for the use of funds in conditions of shortage.

Protection of Financial Safety

Effective protection of financial safety requires:

  • Stable and uniform application of criminal prohibitions against financial crimes
  • Development of guidelines for resolving complex issues related to the qualification of financial crimes

Recent Developments

The author, an external expert, participated in the development of two draft resolutions by the Plenum of the Supreme Court of Russia:

  • Resolution No. 32: On judicial practice in cases of legalization (laundering) of money or other property acquired by criminal means, and acquisition or sale of property knowingly obtained by criminal means.
  • Resolution No. 48: On the practice of the courts’ application of legislation on liability for tax crimes.

The approval and implementation of these resolutions are crucial in ensuring a stable and secure financial system in Russia.