Financial Crime World

Financial Intelligence Unit Roles in Bulgaria: Combating Money Laundering and Terrorism Financing

The Bulgarian government has established a robust financial intelligence unit (FIU) system to combat money laundering and terrorism financing. The State Agency for National Security (SANS) is the primary regulatory body responsible for overseeing anti-money laundering (AML) and combating the financing of terrorism (CTF) in the country.

Roles and Responsibilities

The Financial Intelligence Directorate of SANS has the authority to gather, preserve, examine, analyze, and disclose financial intelligence. The FIU plays a vital role in detecting and preventing illegal activities by collecting and analyzing suspicious transactions and other financial data.

Key Authorities

  • Bulgarian National Bank
  • State Commission on Gambling
  • National Customs Agency
  • Financial Supervision Commission

These authorities play a crucial role in monitoring compliance with AML requirements in specific industries.

Compliance Requirements for Reporting Entities

To comply with AML/CTF regulations in Bulgaria, reporting entities such as banks, insurance companies, and intermediaries must adhere to strict guidelines. These entities must:

  • Perform customer due diligence
  • Gather and store information and documents
  • Assess the risk of money laundering and terrorism financing
  • Disclose suspicious transactions and customers

In addition to these duties, reporting entities must also:

  • Establish an AML program
  • Perform comprehensive customer verification
  • Record-keeping
  • Assessment of risk level
  • Reveal questionable activities and clients
  • Provide AML training for employees
  • Ensure contact and information exchange at the national and international levels

Record-Keeping Requirements

Records must be preserved for at least five years. Reporting entities are responsible for obtaining essential information from third-party providers if necessary.

Bulgaria’s Progress in Implementing International Standards

Bulgaria has made significant progress in implementing international standards, with two of the Financial Action Task Force’s (FATF) 40 Recommendations fully implemented. The country is also largely compliant with the remaining 15 recommendations.

Understanding AML/CTF Reporting Obligations

For individuals or businesses operating in Bulgaria, it is crucial to understand their AML/CTF reporting obligations. This includes:

  • Notifying the FIU before carrying out a procedure or transaction if there are indications of money laundering and/or criminal activity
  • Notifying the FIU even after commercial or professional relationships have been established

Understanding these requirements is essential for maintaining compliance with AML/CTF regulations in Bulgaria. Failure to comply can result in severe penalties and reputational damage.

Conclusion

By working closely with the FIU and other authorities, reporting entities can play a vital role in preventing financial crimes and maintaining the integrity of the Bulgarian financial system. Understanding the roles and responsibilities of the Financial Intelligence Unit in Bulgaria is crucial for maintaining compliance with AML/CTF regulations and preventing money laundering and terrorism financing.