Financial Crime World

Bulgaria Takes Tough Stance on Financial Crime Detection

In its efforts to combat money laundering and terrorist financing, Bulgaria has implemented a robust anti-money laundering (AML) framework that aligns with European Union directives and international standards.

A Robust AML Framework

At the heart of Bulgaria’s AML strategy is the Money Laundering Act, which outlines the legal framework for combating money laundering and terrorist financing. The act is complemented by the Anti-Money Laundering Measures Act, which specifies detailed measures and procedures for financial institutions to prevent and detect money laundering activities.

  • The Criminal Code of Bulgaria defines money laundering as a criminal offense and establishes penalties for offenders.
  • The Money Laundering Act outlines the legal framework for combating money laundering and terrorist financing.
  • The Anti-Money Laundering Measures Act specifies detailed measures and procedures for financial institutions to prevent and detect money laundering activities.

Regulatory Authorities

Several regulatory authorities are responsible for overseeing AML compliance in Bulgaria:

  • The Financial Supervision Commission (FSC) supervises financial institutions, including banks, insurance companies, and investment firms.
  • The Bulgarian National Bank (BNB) monitors credit institutions and non-bank payment service providers.
  • The Financial Intelligence Directorate (FID) is responsible for receiving, analyzing, and disseminating suspicious transaction reports (STRs) and other financial intelligence to law enforcement agencies.

Compliance Requirements

Companies operating in Bulgaria are required to comply with AML regulations by:

  • Revealing the identity of their ultimate beneficial owners
  • Implementing comprehensive AML programs
  • Conducting thorough know-your-customer checks
  • Maintaining records of customer transactions for at least five years
  • Continuously monitoring customer transactions for suspicious activities and reporting any suspicious transactions promptly

Consequences of Non-Compliance

Failure to comply with these requirements can result in severe penalties, including fines and imprisonment.

International Cooperation

Bulgaria has actively cooperated with international organizations, including the Financial Action Task Force (FATF), to combat money laundering and terrorist financing. As a result, Bulgaria is not currently listed on the FATF Countries List as having strategic AML deficiencies.

Conclusion

In conclusion, Bulgaria’s commitment to combating financial crime detection is evident through its robust AML legal framework and regulatory authorities. Financial institutions operating in the country must adhere to stringent compliance requirements to prevent illicit financial activities. Staying informed about the evolving AML landscape and continuously improving AML controls are essential for businesses operating in Bulgaria to ensure they remain compliant and contribute to the integrity of the global financial system.