Financial Crime World

Financial Crimes Definition in Bulgaria: Understanding Anti-Money Laundering Regulations

Bulgaria has implemented a robust anti-money laundering (AML) framework to combat financial crimes and safeguard its financial system’s integrity. This article provides an overview of the country’s AML regulations, legal framework, regulatory authorities, and compliance requirements.

At the heart of Bulgaria’s AML regime is the Money Laundering Act, which outlines the legal framework for combating money laundering and terrorist financing. The Anti-Money Laundering Measures Act complements this legislation by specifying detailed measures and procedures for financial institutions to prevent and detect money laundering activities. Additionally, the Criminal Code of Bulgaria includes provisions related to money laundering as a criminal offense.

Regulatory Authorities

Financial Supervision Commission

The Financial Supervision Commission is responsible for supervising financial institutions such as banks, insurance companies, and investment firms.

Bulgarian National Bank

The Bulgarian National Bank monitors credit institutions and non-bank payment service providers.

Financial Intelligence Directorate

The Financial Intelligence Directorate receives, analyzes, and disseminates suspicious transaction reports and other financial intelligence to law enforcement agencies.

Ministry of Finance

The Ministry of Finance coordinates Bulgaria’s AML efforts at the national level.

Compliance Requirements

To comply with Bulgarian AML regulations, companies must:

  • Reveal the identity of their ultimate beneficial owners (UBOs)
  • Appoint a contact person who is a Bulgarian citizen
  • Develop and maintain comprehensive AML programs, including:
    • Risk assessments
    • Policies
    • Procedures
  • Conduct thorough know-your-customer checks on customers
  • Implement customer due diligence measures to monitor and mitigate the risk of money laundering
  • Apply enhanced due diligence for high-risk customers
  • Maintain records of customer transactions and due diligence documentation for at least five years
  • Continuously monitor customer transactions for suspicious activities
  • Report suspicious transactions promptly to the Financial Intelligence Directorate
  • Provide AML training to employees to understand their roles and responsibilities in AML compliance

Consequences of Non-Compliance

Severe Penalties

Failure to comply with AML regulations can result in severe penalties, including fines and imprisonment.

International Cooperation

Bulgaria actively cooperates with international organizations and other countries in the fight against money laundering and terrorist financing. It is a member of the Financial Action Task Force (FATF).

Conclusion

In conclusion, Bulgaria’s commitment to combating financial crimes is evident through its robust AML legal framework and regulatory authorities. 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 the evolving AML landscape and continuously improving AML controls are essential for businesses operating in Bulgaria to ensure they remain compliant and contribute to the integrity of the global financial system.