Bulgaria’s Revamped Anti-Money Laundering Regulations: A Step Closer to Global Compliance
Bulgaria has taken significant strides towards enhancing its anti-money laundering (AML) regulations, bringing them in line with international norms, as identified in the latest assessment report from the Council of Europe’s Moneyval oversight body.
Improvements in Bulgaria’s AML Strategies
Previous assessments positioned Bulgaria under the Council of Europe’s compliance enhancing procedures due to AML shortfalls in the country. However, Moneyval’s latest report reveals:
- Bulgaria has made considerable progress towards adhering to 13 out of 40 Financial Action Task Force (FATF) recommendations
- Fully or largely compliant in key areas: customer due diligence for DNFBPs (Designated Non-Professional Businesses and Professions)
- Covered sectors: gambling and casino sector, real estate, and legal services
Aligned with International Standards
Highlights of Bulgaria’s improvements in customer due diligence for DNFBPs:
- Numerous steps to strengthen the AML and counter-terrorist financing systems
- New AML unit established at the National Revenue Agency (NRA) last year
- Enforcing regulations: customer verification, risk assessments, transaction monitoring, and information sharing with international authorities
The Gambling Industry: An Economic Contributor with Challenges
Despite the challenges arising from the new licensing and income tax requirements:
- Gambling will generate around BGN200m (£88m/€102.3m/$111.7m) for Bulgaria’s budget in 2024
- Over the past two years, the sector has yielded approximately BGN300m in taxes and fees
- Increased fee for licenses by 300% and tax rate from 15% to 20%
Key Improvements and Milestones
- Adherence to 13 out of 40 FATF recommendations
- Fully or largely compliant with key AML areas: customer due diligence for DNFBPs
- New AML unit established at the National Revenue Agency
- Enhancements to AML systems and regulations
- Generating substantial revenue for the Bulgarian economy
Bulgaria’s Continued Journey to Global Compliance
The improved AML regulations, focusing on strengthened scrutiny of the gambling sector, signal a significant step taken by Bulgaria to meet international norms and increase its global compliance.