Financial Crime World

Bulgaria Cracks Down on Fraudulent Transactions with Robust Anti-Money Laundering Measures

Bulgaria has taken a comprehensive approach to prevent financial crimes and safeguard its financial system by adopting a robust anti-money laundering (AML) framework that aligns with European Union directives and international standards.

AML Framework

At the heart of Bulgaria’s AML regime is the Money Laundering Act, which outlines the legal framework for combating money laundering and terrorist financing. The Anti-Money Laundering Measures Act complements this legislation by specifying detailed measures and procedures for financial institutions to prevent and detect money laundering activities.

Regulatory Authorities

A range of regulatory authorities are responsible for overseeing AML compliance in Bulgaria:

  • Financial Supervision Commission
  • Bulgarian National Bank
  • Financial Intelligence Directorate
  • Ministry of Finance

These authorities play a crucial role in ensuring that financial institutions comply with AML regulations.

Compliance Requirements

Companies operating in Bulgaria must adhere to stringent compliance requirements, including:

  • Revealing the identity of ultimate beneficial owners (UBOs)
  • Implementing comprehensive AML programs
  • Conducting thorough know-your-customer checks on customers
  • Maintaining records of customer transactions for at least five years

Failure to comply with AML regulations can result in severe penalties, including fines and imprisonment.

International Cooperation

Bulgaria’s commitment to combating money laundering and terrorist financing is evident through its active cooperation with international organizations, including the Financial Action Task Force (FATF). The country has also been commended by FATF for its efforts in aligning with international AML standards.

Conclusion

Bulgaria’s robust AML framework and regulatory authorities demonstrate the country’s commitment to preventing financial crimes and safeguarding its financial system. Businesses operating in Bulgaria must stay informed about evolving AML regulations and continuously improve their AML controls to ensure compliance and contribute to the integrity of the global financial system.