MOSCOW, September 11 (RAPSI) – Russia’s Culture Ministry has proposed amending the Criminal Code article on fraud to introduce a 10-year prison penalty for tourism fraud, according to the government's official website for pending legislation.

Penalties for operating an unlicensed travel agency that has not been added to the federal register, in particular if the crime was committed by an organized group or aimed at receiving large-scale profit, could include a prison term of up to 10 years and a fine of up to 1 million rubles ($26,900).

The amendments are expected to come into force in January 2015.

The bill states that all travel agencies must stipulate financial provisions in the form of a professional liability insurance contract or a bank guarantee worth at least 1 million rubles ($26,900).

The ministry has also proposed tougher requirements to travel agencies. The company head and the chief and deputy chief accountants must comply with business reputation requirements, in particular, have no record of conviction for deliberate economic crimes under Russia’s Criminal Code.

The bill also reads that travel companies would be obliged to issue their clients with return tickets and a hotel reservation confirmation letter.

A number of Russian travel agencies went bankrupt in July and August, including one of the oldest in Russia, the St. Petersburg-based Neva agency. The painful process has not stopped yet.

After the travel market collapsed, Prime Minister Dmitry Medvedev ordered the law enforcement agencies in early August to check activities of the travel agencies.

Russia's Investigative Committee has launched a probe into the alleged misconduct and fraud involving travel agencies that went bankrupt.