Financial Crime on the Rise in Bulgaria: Experts Warn of Systemic Issues
A recent roundtable discussion organized by the Center for the Study of Democracy has shed light on the growing problem of financial crime in Bulgaria, with experts warning that a lack of effective implementation and institutional capacity are hindering efforts to combat money laundering.
AML Framework in Line with International Norms
According to the latest report from MONEYVAL at the Council of Europe, Bulgaria’s legal and institutional framework for anti-money laundering (AML) is largely in line with European and international norms. However, despite this positive assessment, the country has seen a gradual increase in money laundering signals and pre-trial proceedings over the past few years.
Ineffectiveness of Sentences and Investigation
The Specialized Administrative Directorate “Financial Intelligence” at the State Agency for National Security (SANS) has received an increasing number of money laundering signals, but the effectiveness of sentences for such crimes remains disappointingly low. In 2015, only four individuals were handed effective sentences for money laundering, compared to 444 for drug trafficking and 88 for tax-related crimes.
Experts’ Recommendations
Experts attending the roundtable emphasized that institutional capacity, including adequate funding and qualified human resources, is critical for increasing the effectiveness of AML prevention and investigation. They also highlighted the importance of:
- Intra-institutional cooperation
- International collaboration with foreign organizations and intelligence units
- Establishing a solid track record for AML and asset forfeiture
Improving Asset Confiscation Procedures
The participants also agreed that procedures leading to confiscation of illegally obtained assets should start as early as possible and run parallel to criminal proceedings, rather than waiting until after convictions are secured.
Systemic Issues and the Way Forward
Bulgaria’s struggle to combat financial crime highlights the need for a systematic approach to collecting and analyzing financial information related to organized crime groups, as well as a broader understanding of the legal framework. The country must address these systemic issues if it is to make meaningful progress in preventing and investigating money laundering.