Bulgaria’s Hidden Crisis: Money Laundering and Financial Crime

Bulgaria, the small European country located at the crossroads of Europe and Asia, has been a target for money laundering and financial crimes, leading to significant economic instability and harm to its citizens. This issue has gained renewed attention as Bulgaria continues to struggle with the problem.

Bulgaria’s Vulnerability to Money Laundering and Financial Crime

• Bulgaria’s geographic location makes it a natural transit point for illicit funds due to Europe and Asia proximity.
• Weak regulatory framework and corruption issues make it an attractive destination for criminals.

EU Reports and Monitoring

• Bulgaria has consistently ranked among the highest EU countries for money laundering.
• In 2021, Bulgaria was one of seven EU countries placed under EU Money Laundering Regulation monitoring.

Money Laundering Offenses and Predicate Offenses in Bulgaria

• Money laundering in Bulgaria is defined as the conversion or transfer of property knowing it derives from criminal activity or is intended for use in criminal activity.
• Predicate offenses include theft, extortion, drug trafficking, and tax evasion.

Defenses against Money Laundering Charges

• The most successful defense is proving that the defendant had no knowledge of the criminal origin of the funds.

Sanctions for Money Laundering

• The maximum penalty for money laundering is 12 years’ imprisonment.
• The criminal may also be liable for confiscation of their assets.

Combating Money Laundering and Financial Crime

• Bulgaria has implemented several reforms and strengthened its regulatory framework.
• Progress has been made, but significant work needs to be done to address corruption and weak enforcement.

Multi-pronged Approach to Fight Money Laundering

• Strengthen regulatory framework.
• Increase transparency.
• Work closely with international partners to disrupt criminal networks.