Financial Crime World

Bulgaria Makes Progress in Combating Money Laundering and Terrorist Financing

Sofia, Bulgaria - Bulgaria has made significant strides in combating money laundering and terrorist financing, according to a recent assessment report by international authorities.

Awareness of Beneficial Ownership Requirements

The report highlights that all financial institutions are aware of the concept of beneficial ownership for legal entities, as required by article 3 (2) of the Rules on the Implementation of the Law on Money Laundering and Financing of Terrorism (LMML). This demonstrates a strong understanding of the importance of identifying and monitoring the ultimate beneficiaries of transactions.

Supervision and Monitoring

The Financial Intelligence Directorate - State Agency for National Security (FID-SANS) plays a primary role in ensuring compliance with AML/CFT requirements. The agency has implemented a range of measures to address non-compliance, including:

  • Administrative sanctions
  • Increased on-site and off-site supervision

These measures demonstrate a commitment to enforcing AML/CFT regulations and promoting a culture of compliance among financial institutions.

Designated Non-Financial Businesses and Professions

Bulgaria’s list of designated non-financial businesses and professions subject to AML/CFT requirements is more extensive than international standards, covering:

  • External accountants
  • Private enforcement agents

While awareness among these sectors has improved, there remains a need for further education on the enhanced measures required for Politically Exposed Persons (PEPs).

International Cooperation

Bulgaria’s authorities have established a comprehensive network of bilateral and multilateral agreements, enabling effective cooperation with foreign counterparts. This highlights Bulgaria’s commitment to international cooperation and its willingness to work together to combat money laundering and terrorist financing.

Areas for Improvement

While Bulgaria has made significant progress, there are still areas that require improvement, including:

  • Extending the list of predicate offences to include all categories of piracy, market manipulation, and insider trading
  • Covering all aspects of terrorism financing in Bulgarian legislation

Despite these challenges, the assessment concludes that Bulgaria’s legal framework provides a solid basis for effective cooperation, with international authorities praising the country’s efforts in combating money laundering and terrorist financing.

Key Findings

  • All financial institutions are aware of beneficial ownership requirements
  • FID-SANS plays primary role in supervising AML/CFT compliance
  • Administrative sanctions imposed for non-compliance
  • Bulgaria’s list of designated non-financial businesses and professions is more extensive than international standards
  • International cooperation is effective, efficient, and advanced
  • Areas for improvement include extending predicate offences and covering all aspects of terrorism financing

Source:

  • Financial Intelligence Directorate - State Agency for National Security (FID-SANS)
  • Ministry of Justice
  • Supreme Prosecutor’s Office of Cassation