Financial Crime World

Bulgaria’s Banking Sector Faces Compliance Risks, Says Council of Europe Body

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A recent follow-up report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has highlighted that Bulgaria has made significant strides in strengthening its preventive framework to combat money laundering and financing of terrorism.

Improvements Made

According to the report, Bulgaria has improved its compliance with 10 out of the Financial Action Task Force’s (FATF) 40 Recommendations. These recommendations cover various areas, including:

  • National cooperation and coordination
  • Politically exposed persons
  • Money or value transfer services
  • Internal controls
  • Foreign branches and subsidiaries
  • Designated non-professional business and professions
  • Customer due diligence
  • Transparency and beneficial ownership of legal arrangements
  • Regulation and supervision of financial institutions
  • Powers of supervisors
  • Cash couriers
  • Statistics

Remaining Deficiencies

While Bulgaria has made progress, it remains partially compliant with recommendations on:

  • Correspondent banking (Recommendation 13)
  • New technologies (Recommendation 15)

The country’s banking sector continues to face compliance risks in this regard.

Progress and Future Expectations

Bulgaria is expected to report back to MONEYVAL within one year on its progress in strengthening its implementation of measures to combat money laundering and terrorism financing. The country has made significant strides since the adoption of its mutual evaluation report in May 2022, with only minor deficiencies remaining for some recommendations.

About MONEYVAL

MONEYVAL is a monitoring body of the Council of Europe that evaluates 33 states and territories and makes recommendations to national authorities on necessary improvements to their anti-money laundering and counter terrorist financing systems. The organization aims to assess compliance with international standards to combat money laundering, terrorism financing, and proliferation of weapons of mass destruction, as well as the effectiveness of their implementation.

Full Report Available

The full report is available online, and MONEYVAL will continue to monitor Bulgaria’s progress in this area.