Bulgaria Urged to Improve Financial Crime Prevention Strategies

The Council of Europe’s anti-money laundering body, MONEYVAL, has released a report calling on Bulgaria to strengthen its efforts in combating money laundering and financing of terrorism.

Key Findings

• Bulgaria achieved a moderate level of effectiveness in assessing money laundering and terrorism financing risks, domestic coordination, investigation and prosecution of terrorism financing, targeted financial sanctions related to terrorism financing, and international cooperation.
• However, the country demonstrated a low level of effectiveness in areas such as:
  • Use of financial intelligence
  • Investigations and prosecutions of money laundering
  • Confiscation of proceeds of crime or property of equivalent value
  • Targeted financial sanctions related to proliferation financing
  • Prevention of misuse of legal persons and arrangements

Recommendations

• Improve the use of financial intelligence, investigation, and prosecution of money laundering
• Enhance confiscation regime by addressing technical and procedural constraints
• Take a more systematic approach to investigate the financing aspects of terrorism-related offenses
• Improve national mechanism for implementing targeted financial sanctions
• Conduct more comprehensive analysis of terrorism financing vulnerabilities in non-profit sectors
• Enhance risk-based supervision or monitoring of those non-profit organizations at risk of being misused for terrorism financing

Concerns and Urgent Actions

• 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
• Urgent review and action needed in the sphere of beneficial ownership information held in registers and by obliged entities
• Establish market entry measures to prevent unlicensed businesses

International Cooperation

• Bulgaria provides generally timely and constructive assistance across the range of requests for international cooperation, including mutual legal assistance.

The report highlights several areas where Bulgaria needs to improve its efforts in combating money laundering and financing of terrorism. By implementing these recommendations, Bulgaria can strengthen its financial crime prevention strategies and better protect its economy from illegal activities.