Bulgaria Moves to Balance Bank Secrecy with Anti-Money Laundering Efforts

In a bid to strike a balance between protecting bank secrecy and combating money laundering, Bulgaria has introduced new legislation that allows for the disclosure of confidential information in certain cases.

Disclosure of Confidential Information

Under the new law, clients have the right to request that information about their accounts be disclosed to a third party. In some instances, it may be in the client’s best interest that this information is shared with authorities or other parties. However, banks must obtain express written consent from the account holder before disclosing any information.

Conditions for Disclosure

When disclosing confidential information, banks must specify exactly what information can be disclosed, to whom, when, and under what conditions. This ensures that sensitive information is only released in accordance with the law and with the client’s explicit consent.

Exceptions to Bank Secrecy

The law also allows for disclosure of bank secrets in cases where a court has ordered it, typically in investigations related to organized crime or tax evasion. In these instances, courts may order banks to disclose confidential information if there is evidence of criminal activity.

The Right to Bank Secrecy Remains Unwavering

However, the right to bank secrecy remains a fundamental individual right in Bulgaria and can only be infringed upon in accordance with the law.

New Agency Established to Combat Money Laundering

Bulgaria has also established a new agency, the Central Service for Combating Organized Crime (CSCOC), which is tasked with tracking investment proceeds from criminal activities and seizing assets linked to organized crime.

Powers of the CSCOC

The CSCOC has been granted powers to obtain banking, financial, and commercial information from traders, banks, government bodies, and organizations. This information can be used to detect and seize proceeds from organized crime.

International Cooperation

===========================

Bulgaria’s efforts to prevent money laundering are also being bolstered by international cooperation. The country has signed and ratified the Convention of the Council of Europe on Laundering, Search, Seizure and Confiscation of the Proceeds of Crime, which aims to harmonize anti-money laundering efforts across member states.

Implementation and Impact

The implementation of these new laws and regulations is expected to strengthen Bulgaria’s position in the fight against financial crime and ensure that bank secrecy is maintained while still allowing for necessary disclosures.