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Bulgaria's Corruption-Money Laundering Crisis

· 2 min read
Lucy Wilson
Financial Intelligence Analyst

Maria Nizzero and Arzu Abbasova, researchers at RUSI, the Royal United Services Institute for Defence and Security Studies

Bulgaria's Grey Listing by FATF​

  • In October 2023, the Financial Action Task Force (FATF) added Bulgaria to its list of jurisdictions under increased monitoring (grey listing).
  • This "grey listing" is a strong warning that Bulgaria's financial integrity is inadequate, and its response to money laundering risks and enabling offenses, such as corruption, leaves much to be desired.

Bulgaria's Reputation as a Safe Haven for Crime and Money Laundering​

  • Bulgaria's weak legal framework, lack of political will, and perceived impunity for those involved in corrupt activities have attracted criminals from around the world.
  • Bulgaria is considered one of the most corrupt countries in the European Union, according to the European Commission.

FATF's Concerns About Bulgaria's Anti-Money Laundering Measures​

  • The FATF had previously expressed concerns about Bulgaria's failure to implement anti-money laundering measures effectively.
  • The EU's Anti-Money Laundering Authority (AMLA) reported that Bulgarian banks had processed €5 billion in suspicious transactions between 2017 and 2021.
  • The European Court of Auditors found that Bulgarian authorities failed to investigate and sanction several high-risk cases of money laundering and terrorist financing.
  • Corruption and money laundering are intricately linked, as criminals often use bribery and other corrupt practices to facilitate money laundering activities.
  • Bulgaria's weak rule of law and lack of transparency make it an attractive destination for illicit funds.

A Call to Action for Bulgaria​

  • Bulgaria must take decisive steps to address its vulnerabilities to money laundering and corruption.
  • This includes strengthening its legal framework, increasing transparency, and enhancing the capacity of its law enforcement and regulatory agencies.

Opportunity for Bulgaria to Demonstrate Commitment​

  • The FATF's assessment provides an opportunity for Bulgaria to demonstrate its commitment to fighting money laundering and corruption.
  • With international cooperation and support, Bulgaria can turn the tide against these destructive activities and build a more prosperous and corrupt-free future for its citizens.

This article was exclusively written for Mediapool.bg.