Financial Crime World

MONEYVAL Urges Bulgaria to Improve Fight Against Financial Crimes and Terrorism Financing

Introduction

The Council of Europe’s anti-money laundering body, MONEYVAL, has published a new report assessing Bulgaria’s compliance with international standards in combating money laundering and terrorism financing. The report highlights several areas where the country needs to improve its efforts.

Key Findings

  • Bulgaria achieved only a moderate level of effectiveness in combating money laundering and terrorism financing.
  • The country faces significant challenges in its regulatory framework, including:
    • Lack of use of financial intelligence
    • Ineffective investigations and prosecutions of money laundering cases
    • Limited confiscation of proceeds of crime
  • Low numbers of money-laundering investigations, prosecutions, and convictions
  • Criminal sanctions for money laundering are not commensurate with identified risks

Recommendations

MONEYVAL recommends that Bulgaria:

  • Improve the use of financial intelligence to combat money laundering
  • Investigate and prosecute money laundering cases more effectively
  • Strengthen its confiscation regime
  • Take a more systematic approach to investigating the financing aspects of terrorism-related offenses
  • Improve its national mechanism for implementing targeted financial sanctions
  • Conduct more comprehensive analysis of terrorism financing vulnerabilities in non-profit sectors

Additional Concerns

MONEYVAL also expressed concerns over:

  • Lack of measures to prevent criminals from entering certain sectors, such as:
    • Real estate brokers
    • Trusts and company service providers
    • Accountants
    • Virtual asset service providers
  • Inaccurate beneficial ownership information held in registers and by obliged entities

Recommendations for Improvement

MONEYVAL urges Bulgaria to:

  • Establish market entry measures to prevent unlicensed businesses
  • Take proactive steps to prevent criminals from entering certain sectors
  • Review policies and improve transparency regarding beneficial ownership information

Positive Aspects

The report praised Bulgaria’s efforts to provide timely and constructive assistance across a range of requests for international cooperation, including mutual legal assistance.

Access the Full Report

The full MONEYVAL report can be accessed at [link].