Bulgaria’s Lack of Transparency in Ownership and Investment Programs Raises Concerns

A recent report has highlighted the country’s failure to effectively address money laundering (ML) and terrorist financing (TF) risks, citing a lack of transparency in ownership and investment programs. The report, released by [name], highlights the involvement of lawyers, accountants, and notaries in facilitating ML, as well as the potential abuse of investment-related residence and citizenship (IRRC) programs.

Lack of Transparency in Ownership and Investment Programs

The report notes that Bulgaria’s authorities have a limited understanding of TF risks, with only basic knowledge of the cash economy in the country. The report also notes that there has been limited analysis of financial transfers, particularly from high-risk countries.

Challenges in Understanding Risk

• Limited understanding of TF risks
• Basic knowledge of cash economy in the country
• Limited analysis of financial transfers from high-risk countries

Criticism of IRRC Program

The IRRC program has been particularly criticized for its potential to be abused for ML. While authorities acknowledge the risk, no concrete measures have been taken to prevent it.

Concerns with IRRC Program

• Potential to be abused for ML
• No concrete measures taken to prevent abuse

Need for a National Strategy

The report criticizes the lack of suitable technology systems and meaningful statistics in certain areas, which hinders risk understanding and coordination among authorities. It also highlights the need for a national strategy to develop policies consistent with identified ML/TF risks.

Recommendations

• Address lack of transparency in ownership and investment programs
• Develop a national strategy for AML/CFT policies
• Improve risk understanding through analysis of financial transfers from high-risk countries
• Enhance coordination among authorities using suitable technology systems

Conclusion

By addressing these issues, Bulgaria can significantly reduce the risks associated with ML/TF and ensure the integrity of its financial system.