Financial Crime World

Bulgaria Strengthens Anti-Fraud Measures, Reduces Risk of Financial Fraud

A recent report by MONEYVAL, a Council of Europe body responsible for assessing compliance with international standards to combat money laundering and terrorism financing, has praised Bulgaria’s efforts in strengthening its anti-money laundering and combating terrorist financing systems. The country has made significant progress in implementing measures to prevent financial fraud.

Progress Made

According to the report, Bulgaria is now largely compliant with 27 out of the 40 applicable Financial Action Task Force (FATF) Recommendations. The country has improved its compliance with recommendations on:

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

Upgrades in Compliance

Bulgaria’s rating was upgraded from “partially compliant” to “largely compliant” in several areas, including:

  • Customer due diligence
  • Transparency and beneficial ownership of legal arrangements
  • Regulation and supervision of financial institutions
  • Powers of supervisors
  • Cash couriers
  • Statistics

Progress on Recommendations

The country is also making progress on recommendations related to:

  • Correspondent banking
  • New technologies

Remaining Deficiencies

While Bulgaria still has some minor deficiencies in certain areas, it is now rated as “compliant” or “largely compliant” with 27 FATF Recommendations, and “partially compliant” with 13 others. There are no Recommendations where Bulgaria is non-compliant.

Next Steps

The country is expected to report back to MONEYVAL within the next year on its progress in strengthening its implementation of measures to combat money laundering and terrorism financing.

Importance of Anti-Fraud Framework

Bulgaria’s efforts to improve its anti-fraud framework come as a welcome development, given the growing threat of financial fraud in the region. By strengthening its preventive measures, Bulgaria is taking a crucial step towards protecting its citizens and businesses from the risks of financial crime.