Bulgaria Compliant with Global AML/CFT Standards, Moneyval Reports
A recent follow-up report by the Council of Europe’s Moneyval committee has found that Bulgaria has strengthened its anti-money laundering (AML) and combating terrorist financing (CFT) systems, meeting international standards. The country had been placed under compliance-enhancing procedures two years ago after a previous mutual evaluation report raised concerns.
Progress Made in Implementing AML/CFT Measures
According to Moneyval, Bulgaria is now fully or largely compliant with 13 out of 40 applicable Financial Action Task Force (FATF) recommendations. While there are still areas that require improvement, the nation has made significant progress in implementing AML/CFT measures.
Enhanced Oversight and Monitoring
Among the improvements is the enhanced oversight of designated non-professional business and professions (DNFBPs), including:
- The gambling sector
- Real estate
- Legal services
The new National Revenue Agency’s (NRA) anti-money laundering unit, launched last year, will enforce requirements such as:
- Customer verification
- Document collection
- Risk assessments
The NRA’s AML unit will also monitor operations, transactions, and customers flagged as suspicious, sharing information with authorities in other countries.
Growth of the Bulgarian Gambling Industry
Despite these improvements, the Bulgarian gambling industry continues to grow, predicted to generate BGN200 million for the country’s budget in 2024. With gambling contributing over BGN300 million in taxes and fees to the state budget over the past two years, changes to Bulgaria’s tax structure could boost its financial contribution further.
Challenges Ahead
However, the fee for obtaining a licence has increased significantly, up 300%, while the tax on income has jumped from 15% to 20%. Despite these challenges, Bulgaria’s compliance with global AML/CFT standards is a significant step forward in strengthening its financial system.