Changes in legislation

The Federal Law as of 11.06.2021 №203-FL introduces the amendments into the Code of administrative offenses of the Russian Federation, according to which the arrangement of consumer credits or loans, including real estate credits, by legal entities and sole entrepreneurs, having no right to engage in this activity, is punishable by administrative fines:

• for public officials – from RUB 30 to 50 thousand;
• for non-incorporated entrepreneurs– from RUB 30 to 50 thousand or business interruption by administrative means up to 15 days;
• for legal entities - from RUB 300 to 500 thousand or business interruption by administrative means up to 15 days;

In case of crime repetition and absence of elements of the criminally punishable acts, the following fines may be imposed:

• for public officials – from RUB 50 to 200 thousand;
• for non-incorporated entrepreneurs – from RUB 50 to 200 thousand or business interruption by administrative means up to 60 days;
• for legal entities – from RUB 500 to 2 million or business interruption by administrative means up to 60 days;

Concurrently, the Federal law as of 11.06.2021 №215-FL introduces the amendments into the Criminal and the Penal Codes of the Russian Federation, according to which the criminal liability is established for an illegal arrangement of consumer credits or loans.

In particular, the new article 171.5 is included into the Criminal Code of the RF, according to which the arrangement of consumer credits and loans, provided by a Federal law as of 21.12.2013 №353-FL «On consumer credit (loan)» is declared as a criminally punishable act under the following conditions:

• it has no signs of illegal banking activity;
• it is committed by sole entrepreneurs or persons, performing duties of companies’ heads, having no right to engage in this activity, in a large amount of money (more than RUB 2 250 thousand);
• the administrative penalty was earlier imposed for the similar offense;

Criminal liability provides the following:

• a fine – from RUB 300 to 1 million or in the amount of salary or income for the period from 2 to 4 years,
• compulsory community service up to 480 hours,
• imprisonment up to 3 years with the deprivation of right to hold specific posts or to engage in certain activities up to 3 years.