Bulgaria Cracks Down on Financial Crimes, But Definitions Pose Challenges

In recent years, Bulgaria has taken steps to strengthen its legal framework against financial crimes by ratifying a new Anti-Money Laundering Measures Act (AMLMA) in 2018. However, the complexities of law and its implementation pose challenges that are explored in a recent paper published in the Journal of Legal, Ethical and Regulatory Issues.

The Bulgarian Regulation of Money Laundering

The paper, authored by Veselina Kanatova Buchkova, delves into the regulatory landscape of money laundering in Bulgaria and identifies inconsistencies. The AMLMA replaced the previous regulation, which primarily focused on administrative measures imposed by national security and financial intelligence agencies.

Challenges with Definitions

While the AMLMA and Bulgarian Criminal Code definitions of money laundering overlap, they differ from a subjective standpoint. This inconsistency leads to challenges for law enforcement, potentially resulting in inefficiencies and hindrances in implementing preventive measures outlined in the AMLMA.

• The acts that constitute money laundering are sufficiently defined from an objective perspective.
• However, from a subjective standpoint, these definitions may not fully deter those intent on engaging in unlawful activities.

Call for Harmonization

Buchkova argues that lawmakers should harmonize the definition of money laundering across all regulatory frameworks to ensure a clear and consistent understanding. Effective application of the AMLMA’s measures against potential offenders will ultimately benefit Bulgarian society and the European Union.

Conclusion

The crackdown on money laundering is a significant development, but its intricacies and inconsistencies risk hindering its efficacy. Buchkova’s analysis contributes to the ongoing conversation about the importance of a clear and consistent regulatory landscape in combating financial crimes.