Money Laundering Crackdown in Bulgaria: A Look at the Criminal Enforcement and Penalties
Bulgaria, a European Union member state, has been enhancing its efforts against financial crimes, specifically money laundering. In this article, we delve into the criminal enforcement of money laundering in Bulgaria and the penalties imposed under its laws.
Criminal Enforcement of Money Laundering in Bulgaria
In Bulgaria, money laundering is criminally enforced at the national level, with the Criminal Procedural Code providing the framework for investigations and prosecutions.
Initial Stage of Investigations
During the initial stage of money laundering investigations, government investigators, led by a prosecutor, collect evidence and determine whether to charge individuals. Police officers, acting on behalf of the Ministry of Interior and the State Agency for National Security, can get involved for high-profile cases.
Pretrial Proceedings
Once the pretrial proceedings are completed, the prosecutor may bring charges against natural persons in the District Courts, such as the Sofia City Court. In contrast, legal entities can only face administrative sanctions, such as penalties for non-compliance with Anti-Money Laundering (AML) laws.
Money Laundering Conducts
Money laundering itself involves various intentional conducts like:
- Conversion or transfer of property derived from criminal activities
- Concealing or disguising the true origin of property
- Acquiring property knowing it originated from crimes
Intent is a crucial factor in money laundering cases, and conspiring to launder money is also considered a separate offense in Bulgaria.
Penalties for Money Laundering
A range of sentencing outcomes exists for money laundering offenses in Bulgaria, including:
- Imprisonment for one to six years and fines of 3,000 to 5,000 lev for less serious cases
- Imprisonment for 1 to 15 years in prison for more serious cases
- Asset confiscation
- Disqualification from certain professions or the holding of state or public office
Asset Freezing and Victim Compensation
Asset freezing and victim compensation are also addressed under Bulgarian law, despite there being no forfeiture (as defined as confiscation of the perpetrator’s property) in relation to money laundering crimes.
Asset Freezing
The Financial Intelligence Directorate can request asset freezing to secure disgorgement, the confiscation of criminal proceeds by the state. Additionally, victims can request asset freezing to secure their damages or legal costs.
Limitation on Criminal Proceedings
There are limitations on the length of criminal prosecutions for money laundering cases, with a five-year statute of limitations from the date of the offense for bringing charges and a seven-and-a-half-year time limit for all criminal proceedings.
Extraterritorial Reach
Bulgarian money laundering laws have extraterritorial reach, encompassing crimes committed outside of Bulgaria by Bulgarian citizens or those harming the state or Bulgarian citizens’ interests.