New Law Empowers Russian Police to Freeze Bank Accounts Without Judicial Oversight Amid Cybercrime Concerns

President Vladimir Putin has enacted a new law empowering police to freeze individuals’ bank accounts without requiring a court order, significantly extending government control over personal financial resources. Officials describe this move as part of a strategy to tackle cybercrime and financial fraud.

This legislation, which was approved by the lower house, the State Duma, on July 22 and by the upper house, the Federation Council, on July 25, permits officers from the Interior Ministry to halt any banking activities by private citizens for a period of up to 10 days based solely on suspected illegal conduct.

Account freezes can be enacted in «urgent situations» with the concurrence of both the head of the investigative agency and a supervising prosecutor. Following this action, authorities are obligated to submit a formal request to a court within the stipulated 10-day timeframe.

Previously, pre-judicial account freezes were permissible only in cases involving property confiscation in criminal matters. With the introduction of this new law, police are authorized to act preemptively if they suspect funds may be connected to criminal activities.

Additionally, the legislation imposes fresh requirements on financial institutions.

Banks and money transfer companies must provide law enforcement with complete information regarding a citizen’s accounts and transactions within three days of receiving a request, or within 24 hours if the request is made electronically.

Legislators supporting the bill contended that it addresses deficiencies in the existing legal framework, which they claimed restricts law enforcement’s capacity to recover stolen assets or provide restitution to crime victims.

Authorities assure that the law will not encroach upon the rights of compliant citizens, as prosecutors must be informed of all account freezes.

However, legal experts express concerns about the law’s broad scope and ambiguity.

Yuliy Tai, a senior partner at the Bartolius law firm, stated in an interview with Vedomosti that the legislation does not enumerate specific crimes that warrant account freezes and lacks essential procedural protections.

He highlighted that it remains unclear whether the amount of funds frozen needs to correspond to the alleged damages.

Ruslan Zafesov, managing partner at ZE Lawgic Legal Solutions, cautioned that these enhanced powers could lead to arbitrary or unwarranted asset confiscations.

He pointed out that, even within the current legal framework, property belonging to unrelated parties can sometimes be seized in economic crime probes without adequate proof of illicit origins.

Although the law is officially designed to strengthen measures against cyber-related financial crimes, critics worry that it could be misused to target political adversaries, journalists, or activists, especially in a climate where financial coercion is increasingly used as a means of state control.

The new legislation is anticipated to come into effect later this year.