Bulgaria’s Shame: Corruption and Money Laundering Run Hand in Hand

Maria Nizzero and Arzu Abbasova, researchers at RUSI, the Royal United Services Institute for Defence and Security Studies

Bulgaria’s Grey Listing by FATF

• In October 2023, the Financial Action Task Force (FATF) added Bulgaria to its list of jurisdictions under increased monitoring (grey listing).
• This “grey listing” is a strong warning that Bulgaria’s financial integrity is inadequate, and its response to money laundering risks and enabling offenses, such as corruption, leaves much to be desired.

Bulgaria’s Reputation as a Safe Haven for Crime and Money Laundering

• Bulgaria’s weak legal framework, lack of political will, and perceived impunity for those involved in corrupt activities have attracted criminals from around the world.
• Bulgaria is considered one of the most corrupt countries in the European Union, according to the European Commission.

FATF’s Concerns About Bulgaria’s Anti-Money Laundering Measures

• The FATF had previously expressed concerns about Bulgaria’s failure to implement anti-money laundering measures effectively.
• The EU’s Anti-Money Laundering Authority (AMLA) reported that Bulgarian banks had processed €5 billion in suspicious transactions between 2017 and 2021.
• The European Court of Auditors found that Bulgarian authorities failed to investigate and sanction several high-risk cases of money laundering and terrorist financing.

The Link Between Corruption and Money Laundering in Bulgaria

• Corruption and money laundering are intricately linked, as criminals often use bribery and other corrupt practices to facilitate money laundering activities.
• Bulgaria’s weak rule of law and lack of transparency make it an attractive destination for illicit funds.

A Call to Action for Bulgaria

• Bulgaria must take decisive steps to address its vulnerabilities to money laundering and corruption.
• This includes strengthening its legal framework, increasing transparency, and enhancing the capacity of its law enforcement and regulatory agencies.

Opportunity for Bulgaria to Demonstrate Commitment

• The FATF’s assessment provides an opportunity for Bulgaria to demonstrate its commitment to fighting money laundering and corruption.
• With international cooperation and support, Bulgaria can turn the tide against these destructive activities and build a more prosperous and corrupt-free future for its citizens.

This article was exclusively written for Mediapool.bg.