Financial Crime World

Bulgaria Enhances Financial Institution Security Measures to Combat Money Laundering and Terrorism Financing

According to a follow-up report released by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), Bulgaria has significantly improved its preventive framework to combat money laundering and financing of terrorism.

Improved Compliance with FATF Recommendations

The report highlights Bulgaria’s enhanced compliance with ten Financial Action Task Force (FATF) Recommendations, including those on:

  • National cooperation and coordination
  • Politically exposed persons
  • Money or value transfer services
  • Internal controls
  • Foreign branches and subsidiaries

Since the adoption of MONEYVAL’s mutual evaluation report in May 2022, Bulgaria has taken numerous steps to strengthen its anti-money laundering and combating terrorist financing systems.

Key Improvements

Bulgaria is now compliant with Recommendations:

  • 14 on money or value transfer services
  • 32 on cash couriers

Additionally, the country has upgraded its rating from “partially compliant” to “largely compliant” for several other recommendations.

Current Status

Bulgaria currently meets 27 out of the 40 applicable FATF Recommendations. The remaining deficiencies are minor and relate to:

  • Correspondent banking
  • New technologies

Notably, there are no recommendations on which Bulgaria is non-compliant.

Progress Made

The report highlights progress made by Bulgaria in implementing measures to combat money laundering and terrorism financing, including improvements in:

  • National cooperation and coordination
  • Customer due diligence
  • Transparency and beneficial ownership of legal arrangements

Ongoing Monitoring

MONEYVAL’s evaluation was carried out as part of its ongoing monitoring of the country’s anti-money laundering and counter terrorist financing systems. The committee will require Bulgaria to report back within one year on progress made in strengthening its implementation of measures to combat money laundering and terrorism financing.

Future Expectations

Bulgaria is expected to continue implementing the necessary improvements to its anti-money laundering and counter terrorist financing systems, ensuring that financial institutions in the country remain secure and compliant with international standards.