Financial Crime World

Combating Financial Terrorism in Bulgaria: A Comprehensive Guide

As a member of the European Union, Bulgaria has adopted robust anti-money laundering (AML) regulations to prevent financial crimes and safeguard its financial system’s integrity. This guide provides an overview of AML laws in Bulgaria, key regulatory authorities, and compliance requirements.

Bulgarian AML Framework

Bulgaria’s AML framework is built around three primary pieces of legislation:

  • The Money Laundering Act
  • Anti-Money Laundering Measures Act
  • The Criminal Code

These laws provide a comprehensive framework for preventing financial crimes and maintaining the integrity of Bulgaria’s financial system.

Regulatory Authorities

The following regulatory authorities play crucial roles in enforcing AML compliance in Bulgaria:

  • Financial Supervision Commission (FSC)
  • Bulgarian National Bank (BNB)
  • Financial Intelligence Directorate (FID)
  • Ministry of Finance (MOF)

These authorities work together to ensure that financial institutions and designated non-financial businesses and professions comply with AML regulations.

Compliance Requirements

To ensure compliance, companies operating in Bulgaria must:

Ultimate Beneficial Owners (UBOs) Disclosure

  • Reveal the identity of their ultimate beneficial owners (UBOs)
  • Appoint a contact person who is a Bulgarian citizen

AML Program Development and Maintenance

  • Develop and maintain comprehensive AML programs
    • Risk assessments
    • Policies
    • Procedures

Customer Due Diligence

  • Conduct thorough customer due diligence and know your customer checks
    • Verify identities
    • Assess risk profiles

Enhanced Due Diligence

  • Implement enhanced due diligence measures for high-risk customers

Record Keeping and Reporting

  • Maintain records of customer transactions and due diligence documentation for at least five years
  • Continuously monitor customer transactions for suspicious activities
  • Report suspicious transactions to the Financial Intelligence Directorate (FID) promptly

Consequences of Non-Compliance

Failure to comply with AML regulations can result in severe penalties, including fines and imprisonment. Bulgaria actively cooperates with international organizations and countries to combat money laundering and terrorist financing.

FATF Status

Bulgaria is not currently listed on the FATF Countries List for strategic AML deficiencies, demonstrating its commitment to effective AML measures.

Conclusion

Financial institutions and designated non-financial businesses and professions operating in Bulgaria must adhere to stringent compliance requirements to prevent illicit financial activities. Staying informed about evolving AML regulations and continuously improving AML controls are essential for businesses to ensure they remain compliant and contribute to the global financial system’s integrity.