Bulgarian Banking Requirements for Non-Profit Organizations

Key Findings

Local banks in Bulgaria tend to open bank accounts for companies that have at least one legal representative residing in the country.

• The process of setting up a bank account can take between 1-2 months and involves extensive customer due diligence checks.
• Banks expect to receive original notarized excerpts from corporate registries, copies of articles of association, and other documents determined by the bank’s compliance department.

Customer Due Diligence Requirements

For legal entities (including CSOs), banks require:

• Original notarized excerpts from corporate registries
• Copies of articles of association
• Other documents determined by the bank’s compliance department

For individuals, banks may open accounts personally or through a proxy under a notarized power of attorney.

Ongoing Monitoring

Banks conduct ongoing monitoring of business relationships with clients (including CSOs) to verify transactions and operations. The risk level of the relevant customer determines which customer due diligence measures are applied.

Reporting Obligations

Credit/payment institutions report suspicious transactions to the Bulgarian State Agency for National Security (SANS).

• Outbound payment transactions above a certain threshold must be reported to the Bulgarian National Bank for statistical purposes.
• There are no specific reporting obligations for banks to inform governments on civil society banking.

Privacy Protection

Banks are required to protect client information and may only disclose this information in limited circumstances under procedural requirements described in relevant law.

• Credit/payment institutions are subject to the EU General Data Protection Regulation (GDPR) and responsible for collecting and processing client personal data.

Russian Sanctions

There have been no changes to local banking legislation in connection with Russian sanctions. Bulgarian credit institutions/financial institutions are subject to EU regulations imposing sanctions against Russia.

Note: This article is a summary of general information on the requirements for non-profit organizations in Bulgaria to open bank accounts and maintain relationships with banks. It does not provide legal or financial advice, and it should not be used as such. If you need specific guidance, please consult with a qualified professional.