Financial Crimes Definition in Bulgaria: Understanding the FATF Recommendations

Bulgaria has taken significant steps to combat financial crimes by implementing measures outlined by the Financial Action Task Force (FATF) recommendations. These recommendations assess the country’s efforts to prevent money laundering and terrorist financing.

Compliance Achievements

According to the latest report, Bulgaria has achieved compliance in several areas, including:

• Assessing risk and applying a risk-based approach
• National cooperation and coordination
• Targeted financial sanctions related to terrorism and terrorist financing
• Measures to address the confidentiality of financial information
• Regulation and supervision of financial institutions

Areas for Improvement

However, Bulgaria was found to be non-compliant in some areas, including:

• Transparency and beneficial ownership of legal persons and arrangements
• Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
• Efforts to address new technologies and higher-risk countries

Additionally, the country’s efforts to confiscate and provisionally measure assets were deemed partially compliant.

Partial Compliance

The report also highlighted several partially compliant areas, including:

• Confiscation and provisional measures
• Terrorist financing offence
• Customer due diligence

These findings suggest that while Bulgaria has made progress in addressing financial crimes, there is still room for improvement.

Expert Insights

Experts emphasize the importance of implementing effective measures to prevent money laundering and terrorist financing, citing the potential risks posed by these activities to the stability of the global financial system.

Response to Report’s Findings

In response to the report’s findings, Bulgarian authorities have pledged to address the identified shortcomings and work towards achieving full compliance with the FATF recommendations.