Financial Crime World

Bulgaria: Employees Need AML Training to Meet Compliance Obligations

Introduction

In Bulgaria, Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CTF) regulations are enforced by several authorities. To comply with these regulations, businesses must establish an AML program, perform customer due diligence, maintain records, assess risk, report suspicious activities, provide AML training for employees, and ensure contact and information exchange at national and international levels.

Regulatory Bodies

The State Agency for National Security (SANS) is the primary regulatory body responsible for enforcing AML/CTF regulations in Bulgaria. SANS’ Financial Intelligence Directorate can gather, preserve, examine, analyze, and disclose financial intelligence. Other authorities responsible for monitoring compliance with AML requirements in specific industries include:

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

Compliance Requirements

To comply with AML regulations in Bulgaria, businesses must take the following steps:

  • Establish an AML program
  • Perform customer due diligence (CDD) and know-your-customer (KYC) procedures
  • Maintain records of documents and information for at least five years
  • Assess the risk of money laundering
  • Report suspicious activities and clients to the Financial Intelligence Unit (FIU)
  • Provide AML training for employees
  • Ensure contact and information exchange at national and international levels

Record Keeping

Records must be kept for at least five years. If a third-party processes or manages this information, businesses are responsible for obtaining necessary due diligence data from that party.

FATF Recommendations

Bulgaria has made significant progress in implementing the Financial Action Task Force (FATF) recommendations, with two of the 40 recommendations fully complied with and 15 others largely compliant.

Notification Obligations

Reporting entities must notify the FIU when there are indications of money laundering or criminal activity. If businesses are unable to identify clients due to commercial or professional relationships already formed, they must determine whether notification is necessary.

AML Training for Employees

As AML/CTF regulations become increasingly stringent, it is essential for Bulgarian businesses to ensure their employees receive comprehensive training on AML compliance requirements to avoid penalties and reputational damage.