Financial Crime World

Bulgaria’s Financial Crime Reporting Procedures: A Robust Framework for Combatting Money Laundering and Terrorist Financing

As a member of the European Union, Bulgaria has implemented a robust Anti-Money Laundering (AML) framework to prevent financial crimes and safeguard the integrity of its financial system. This article provides an overview of Bulgaria’s AML regulations, regulatory authorities, and compliance requirements for financial institutions.

Regulatory Authorities

The following organizations play a crucial role in overseeing AML compliance in Bulgaria:

  • Financial Supervision Commission (FSC): responsible for supervising financial institutions, including banks, insurance companies, and investment firms
  • Bulgarian National Bank (BNB): monitors credit institutions and non-bank payment service providers
  • Financial Intelligence Directorate (FID): serves as Bulgaria’s financial intelligence unit, receiving and analyzing suspicious transaction reports (STRs) and other financial intelligence to disseminate to law enforcement agencies
  • Ministry of Finance: oversees the implementation of AML regulations

Compliance Requirements

To comply with Bulgarian AML regulations, companies must:

Identify Ultimate Beneficial Owners (UBOs)

Companies must reveal the identity of their UBOs.

Implement Comprehensive AML Programs

Companies must implement comprehensive AML programs that include:

  • Conducting thorough customer due diligence
  • Maintaining records of customer transactions and due diligence documentation for at least five years
  • Continuously monitoring customer transactions for suspicious activities
  • Reporting suspicious transactions to the FID
  • Providing AML training to employees
  • Applying enhanced due diligence measures for high-risk customers

Penalties for Non-Compliance

The Bulgarian government imposes severe penalties for non-compliance with AML regulations, including:

  • Fines and imprisonment for financial institutions that fail to implement adequate AML controls or facilitate money laundering activities
  • Monthly fines until the required identification information is recorded in the relevant registry for companies that fail to comply with AML regulations

International Cooperation

Bulgaria actively cooperates with international organizations and other countries in the fight against money laundering and terrorist financing, participating in mutual evaluations to assess its AML regime’s effectiveness. The country is not currently listed on the Financial Action Task Force (FATF) Countries List as having strategic AML deficiencies, signifying its commitment to aligning with international AML standards.

Conclusion

In conclusion, Bulgaria’s robust AML legal framework and regulatory authorities demonstrate its commitment to combating money laundering and terrorist financing. Financial institutions operating in Bulgaria must adhere to stringent compliance requirements to prevent illicit financial activities. Staying informed about the evolving AML landscape and continuously improving AML controls are essential for businesses operating in Bulgaria to ensure they remain compliant and contribute to the integrity of the global financial system.