Financial Crime World

Bulgaria Urged to Boost Efforts Against Financial Terrorism

A recent report by the Council of Europe’s anti-money laundering body, MONEYVAL, has highlighted Bulgaria’s moderate level of effectiveness in combating money laundering and financing of terrorism. While Bulgaria achieved a moderate level of effectiveness in several areas, the report also identified several areas where improvement is needed.

Key Findings

  • Bulgaria demonstrated a moderate level of effectiveness in assessing money laundering and terrorism financing risks, domestic coordination, investigation and prosecution of terrorism financing, targeted financial sanctions related to terrorism financing, and international cooperation.
  • However, Bulgaria showed a low level of effectiveness in areas such as:
    • Use of financial intelligence
    • Investigations and prosecutions of money laundering
    • Confiscation of proceeds of crime or property of equivalent value
    • Targeted financial sanctions related to proliferation financing
    • Prevention of misuse of legal persons and arrangements

Recommendations

  • Strengthen the regulatory framework to combat financial terrorism
  • Improve practical application of measures to combat financial terrorism
  • Conduct a comprehensive national risk assessment for terrorism financing risks
  • Enhance inter-agency cooperation between law enforcement agencies
  • Develop necessary technical tools to support effective cooperation

Challenges and Concerns

  • Limited understanding of terrorism financing risks due to lack of comprehensive statistics
  • Challenges related to inter-agency cooperation between law enforcement agencies, hindered by a lack of necessary technical tools
  • Bulgaria has faced criticism in recent years over its failure to effectively implement anti-money laundering measures, leading to concerns that it may be vulnerable to terrorist financing

Conclusion

The report’s findings come as Bulgaria struggles to combat financial terrorism and money laundering. The recommendations are seen as a crucial step towards improving Bulgaria’s regulatory framework and ensuring that the country is better equipped to combat these threats. It is essential for Bulgaria to take immediate action to address the identified shortcomings and strengthen its efforts against financial terrorism.