Required action for telecom companies: Suspend SIM card usage upon arrest orders.

The Russian government has enacted a new law aimed at enhancing the legal framework for the prevention of fraud and crimes related to the telecommunications industry. The amendments to the "Telecommunications" law, which came into force today, are intended to increase the effectiveness of combating fraud and crimes related to the theft and withdrawal of funds.

According to the new law, mobile operators are required to stop refunding subscribers the money they paid in advance for communication services. Starting September 1, a seizure can be imposed on a specific amount credited to a subscriber's account if there is suspicion that the money was obtained from criminal activities, intended for financing terrorism or extremism, or used for money laundering.

The law does not refund subscribers the money credited to their accounts as a prepayment if these funds have been seized. The right to carry out operations or freeze funds on a mobile phone account based on a court order must be exercised by authorized entities defined by law, typically financial institutions or telecommunications providers, following the court's directive.

Only law enforcement agencies and courts have the right to suspend operations or seize funds based on a court order, as stated by Viktor Gusakov, the head of the legal company "Master of Law". The measures outlined in the new law are aimed at preventing the withdrawal of funds obtained through criminal activities.

Maria Ivatkina, an expert from the "Myfinances.rf" portal of the NIIF of the Ministry of Finance of Russia, made this statement to "RBK Investments". The press service of the Ministry of Digital Development explained the new law's requirements for mobile operators.

The new law is also focused on addressing issues related to the seizure of funds paid as a prepayment for communication services. It allows for a court order to suspend operations with the money that was paid as a prepayment for communication services, or to seize such funds.

The new law requires operators to stop refunding subscribers' money if law enforcement agencies suspect that it was obtained through criminal activities. The seizure can also be imposed if the money was received from legal entities whose accounts have been blocked due to suspicion of involvement in illegal operations.

The new law is part of a broader effort by the Russian government to combat fraud and money laundering. By targeting the telecommunications industry, the government aims to disrupt the flow of funds obtained through criminal activities and prevent their use for financing terrorism or extremism.

Required action for telecom companies: Suspend SIM card usage upon arrest orders.