Bulgarian Government and Private Sector Unite to Combat Money Laundering
SOFIA, Bulgaria - In a landmark move, the Bulgarian government has launched a comprehensive manual aimed at combating money laundering in the country’s private sector.
Combating Money Laundering: A Systematic Approach
The manual, prepared by major institutions involved in preventing money laundering, including the Ministry of Interior, SANS, National Investigation Service, Supreme Prosecutor’s Office of Cassation, and Commission for Establishing Property Acquired through Criminal Activity, brings together expertise from all key stakeholders to provide a systematic approach to investigating and prosecuting money laundering cases.
The Bulgarian Experience: A Shift in Perspective
According to experts, money laundering is often seen as a complex crime that requires specialized units. However, the Bulgarian experience has shown that simple schemes persist in industries such as construction, real estate, agriculture, trade, and tourism, which can be investigated by regular police officers or investigators without the need for specialized teams.
Key Recommendations
- Joint Operations: Investigators should accompany any crime that generates a significant amount of money with an investigation into money laundering.
- Performance Reviews: Performance reviews of officials from the Ministry of Interior, SANS, and National Investigation Service should include additional monitoring on frequency and methods by which investigators combine the investigation of predicate crimes with money laundering investigations.
- “Follow the Money” Approach: The “follow the money” approach has been shown to be an effective tool for reaching the nucleus of criminal networks and dismantling criminal structures.
Global Best Practices
The experience of the US and many EU member states shows that the “follow the money” approach is a successful strategy for combating organized crime. By tracing financial flows, investigators can provide evidence on predicate crimes and eventually dismantle criminal networks.
Long-Term Impact
Even successful investigations against organized crime may not have long-term impact unless the revenues from criminal activities are removed. The proper utilization of Anti-Money Laundering (AML) investigations remains an untapped opportunity, and this manual is a step towards establishing a systematic approach to training staff in law enforcement agencies and developing mechanisms for cooperation between state bodies, including the private sector.
Conclusion
The Bulgarian government’s initiative demonstrates its commitment to combating money laundering and promoting transparency and accountability in the country’s financial system. By implementing these key recommendations and best practices, Bulgaria can effectively combat money laundering and make significant strides towards a more transparent and accountable financial system.