Financial Crime World

Financial Crimes Definition in Bulgaria

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Bulgaria has a robust system for combating financial crimes, with a clear definition of money laundering and strict laws to prevent and punish such offenses. In this article, we will delve into the definition of financial crimes in Bulgaria, including the legal framework, criminal liability, sentencing outcomes, and related asset freezing and forfeiture laws.

Definition of Financial Crimes

Financial crimes are governed by the Criminal Procedural Code, which divides criminal enforcement into two phases: pretrial and trial. According to Bulgarian law, only natural persons can be guilty of criminal offenses, including money laundering, and be prosecuted. Legal persons may only be sanctioned administratively for non-compliance with anti-money laundering rules.

Money Laundering Definition

Money laundering is defined as intentional conduct, including:

  • Conversion or transfer of property derived from a criminal offense
  • Concealing or disguising the true nature of such property
  • Acquiring, possessing, holding, or using property knowing it was derived from crime

Intent is a mandatory element for criminal liability to arise.

Types of Assets and Transactions

There are no limits on the types of assets or transactions that could form the basis of a money laundering offense. Any offense can be a predicate offense, including crimes committed in other jurisdictions.

Defenses and Sentencing Outcomes

Defendants may rely on general defenses such as mental incapacity and duress, but there are no codified defences specific to charges of money laundering. In criminal money laundering cases, sentencing outcomes include:

  • Imprisonment for one to six years
  • Fines ranging from 3,000 to 5,000 lev (approximately €1,500-2,500)
  • Under aggravating circumstances, the sentence can be increased to up to eight years in prison and a fine of up to 20,000 lev

The Criminal Code also provides for:

  • Disgorgement: the subject matter of the crime is confiscated by the state
  • Disqualification from certain professions or holding public office
  • Acts of preparation for money laundering or association with such activities are punishable by imprisonment or fines

Related asset freezing, forfeiture, and victim compensation laws include:

  • Confiscation of assets in favor of the state
  • Asset freezing to secure disgorgement
  • Damages claims for losses caused by the offense

Limitations on Prosecution

Criminal prosecution for money laundering is precluded after five years from the date of the offense. Any instituted prosecution lapses on expiry of seven years and six months.

Extraterritorial Reach

Bulgarian money laundering laws have extraterritorial reach, applying to offenses committed outside of Bulgaria by Bulgarian citizens or foreign citizens who harm the interests of the Bulgarian state or its citizens.