Bulgaria Lags Behind in Money Transfer Services Regulation

Bulgaria Found Partially Compliant with International Standards

A recent report has found Bulgaria partially compliant with international standards for regulating money transfer services. While some requirements are met, others fall short in several areas, including the determination of an institution’s reputation and quality of supervision.

Shortcomings in Bulgaria’s Regulatory Framework

The report highlighted several shortcomings in Bulgaria’s regulatory framework, including:

• Insufficient mechanisms to determine whether institutions from outside the EU/EEA Member States are subject to a ML/TF investigation or supervisory measure
• Technical deficiencies related to:
  • Exemption of certain types of “other stores of values” from requirements
  • Sanctions for persons carrying out postal money orders without a license
  • Requirements for registration/licensing/maintaining lists of agents and the handling of postal money orders

Call to Strengthen Regulatory Framework and Improve Supervision

To address these shortcomings, Bulgaria has been called upon to strengthen its regulatory framework and improve its supervision of institutions involved in money transfer services. The country’s financial authorities have also been urged to increase public awareness campaigns to educate consumers about the risks associated with unlicensed money transfer services.

Bulgarian Authorities’ Response

In response to the report, Bulgarian authorities have committed to implementing measures aimed at improving the country’s compliance with AML/CFT standards. These measures include:

• Strengthening supervision and enforcement mechanisms
• Enhancing cooperation with other countries
• Increasing public awareness campaigns

Importance of Robust Regulations in Preventing Money Laundering and Terrorist Financing

The report serves as a timely reminder of the importance of robust regulations in preventing money laundering and terrorist financing. Bulgaria’s efforts to improve its regulatory framework will be closely monitored by international authorities to ensure that the country meets its obligations under global AML/CFT standards.

Conclusion

Bulgaria’s partial compliance with international standards for regulating money transfer services highlights the need for strengthened regulatory frameworks and improved supervision in preventing money laundering and terrorist financing. As the country works to improve its compliance, it is essential that international authorities continue to monitor progress and provide support to ensure the effective prevention of these serious crimes.