Bulgaria’s Financial Crime Landscape: An Overview
Financial crime is a growing concern in Bulgaria, with money laundering being one of the most significant threats to the country’s financial stability. The Bulgarian government has taken steps to combat this issue, enacting laws and regulations aimed at preventing and prosecuting financial crimes.
Definition of Money Laundering in Bulgaria
Under Bulgarian law, money laundering is defined as the intentional conversion or transfer of property derived from a criminal offense, or the concealment or disguising of the true nature, source, location, disposal, movement, rights over or ownership of such property. This can include activities such as:
- Opening or maintaining an account in a financial institution under a fictitious name or without the consent of the account holder
- Transferring funds or property derived from a criminal offense
Investigations and Prosecution
The Bulgarian Criminal Procedural Code governs the criminal enforcement of money laundering laws, with investigations typically carried out by government investigators. Prosecutors oversee the process, and competent courts for money laundering prosecutions are district courts, including the Sofia City Court and equivalent regional district courts.
- Only natural persons can be prosecuted for money laundering
- Legal persons may only be sanctioned administratively for non-compliance with anti-money laundering rules
Punishment for Money Laundering
The punishment for money laundering in Bulgaria is severe:
- Imprisonment ranging from one to six years and fines of between 3,000 and 5,000 lev
- In cases where the offense is committed with funds or property derived from a serious intentional crime, the sentence can be increased to three to 12 years and a fine of up to 200,000 lev
Additional Consequences
In addition to imprisonment and fines, money laundering offenses can also result in:
- Confiscation of assets
- Revocation of licenses for companies involved
- Freezing of assets to secure the disgorgement of illegal funds (as requested by the Bulgarian Financial Intelligence Directorate’s investigating prosecutor)
- Damages for losses caused by the offense (entitled to victims)
Extraterritorial Reach
Bulgaria’s laws also have extraterritorial reach, applying to any money laundering offense committed outside of Bulgaria where it harms the interests of the Bulgarian state or a Bulgarian citizen. This means that individuals and businesses with connections to Bulgaria can still be held accountable for financial crimes committed abroad.
Conclusion
Overall, Bulgaria is taking steps to combat financial crime, including money laundering, by strengthening its laws and regulations and increasing cooperation between law enforcement agencies and financial institutions. However, more needs to be done to address the root causes of financial crime and protect the country’s financial stability.