Rada at first reading passes bill on banning financial pyramid schemes in Ukraine
Ukraine's parliament at first reading approved a government bill giving the definition of "a pyramid investment scheme," banning its creation, promotion and distribution of appropriate advertising, as well as criminalizing the organization or promotion of pyramid investment schemes.
Some 310 MPs voted for the document.
According to the document, a pyramid investment scheme is a method of attracting and/or using by any means the financial assets of the scheme members in exchange for the opportunity to benefit financially through the redistribution of financial assets attracted from other participants in the financial pyramid.
The organizers of financial pyramids, as well as those that contribute to the activities of such schemes, are to bear criminal responsibility.
Persons other than the financial pyramid organizer are exempted from criminal responsibility if they voluntarily informed the law enforcement agencies about relevant activities and contributed to their termination.