Financial Crime World

Bulgaria Takes Significant Steps in Combating Financial Terrorism, Says MONEYVAL Report

In a major boost for the country’s anti-money laundering and counter-terrorism financing (AML/CFT) efforts, Bulgaria has made significant progress in implementing key recommendations from the Financial Action Task Force (FATF), according to a recent report by MONEYVAL.

Improved Systems for Preventing Money Laundering and Terrorism Financing

The report highlights Bulgaria’s improved systems to prevent money laundering and terrorism financing since May 2022, with notable advancements in areas such as:

  • National Cooperation and Coordination: Bulgaria has strengthened its national cooperation and coordination mechanisms to combat financial crime.
  • Customer Due Diligence: The country has improved its customer due diligence procedures to ensure that customers are properly identified and their transactions are monitored.
  • Transparency of Beneficial Ownership: Bulgaria has increased transparency around beneficial ownership, making it easier to identify the true owners of companies.

Compliance with FATF Recommendations

The report notes that Bulgaria has largely complied with FATF recommendations 14 on money transfer services and 32 on cash couriers, having initially been rated “partially compliant” before the upgrade. While there are still some minor issues to be addressed for other recommendations, Bulgaria’s overall progress is a testament to its commitment to strengthening its AML/CFT regime.

Notable Strides in Implementing Recommendations

Bulgaria has also made notable strides in implementing recommendations on:

  • Correspondent Banking: The country has improved its correspondent banking practices and implemented measures to prevent financial crime.
  • New Technologies: Bulgaria has taken steps to address the risks associated with new technologies, such as cryptocurrencies.

Current Compliance Status

The country is currently rated as compliant or largely compliant with 27 out of the 40 applicable FATF recommendations assessed by MONEYVAL. Notably, Bulgaria does not have any outstanding guidelines that it does not follow.

Next Steps

The Council of Europe has mandated Bulgaria to submit a comprehensive report within one year outlining its efforts to reinforce measures against money laundering and terrorism financing. This report underscores Bulgaria’s determination to continue improving its AML/CFT framework and stay ahead of emerging threats in the financial sector.

Conclusion

With this latest development, Bulgaria joins a select group of countries that have made significant strides in combating financial terrorism, demonstrating its commitment to international cooperation and best practices in AML/CFT efforts. As the global fight against financial crime continues to evolve, Bulgaria’s progress serves as a positive example for other nations to follow.