Financial Crime World

Title: Bulgaria Urged to Enhance AML/CFT Measures: A Comprehensive Assessment by MONEYVAL

Background

MONEYVAL, the Council of Europe’s anti-money laundering and counter-terrorism financing (AML/CFT) body, has urged Bulgaria to strengthen its approach to combating money laundering and terrorist financing. The organization released a detailed report assessing Bulgaria’s current AML/CFT measures.

MONEYVAL’s Assessment of Bulgaria’s AML/CFT Framework

MONEYVAL’s assessment covers areas such as legal frameworks, regulatory systems, investigatory capabilities, and international cooperation. The key findings reveal both improvements and significant challenges in Bulgaria’s AML/CFT framework.

Improvements

  • Bulgaria has made progress in the AML/CFT framework, but there are still considerable challenges.

Challenges

  • Strengthen financial intelligence: Improve the quality and timely production of suspicious transaction reports.
  • Investigation and prosecution: Enhance the independence and resources of the financial investigation unit.

Concerns over Prosecution and Confiscation of Proceeds of Crime

MONEYVAL expressed concerns about Bulgaria’s low number of cases initiated and concluded regarding prosecution and confiscation of proceeds of crime. The organization recommended Bulgaria:

  • Allocate resources for confiscation orders
  • Ensure investigators have the necessary expertise to execute confiscation orders effectively

Other Recommendations

MONEYVAL suggested numerous measures for Bulgaria, including:

  • Improving cooperation with neighboring jurisdictions
  • Enforcing preventive measures
  • Addressing issues related to the legal framework for mutual legal assistance

Bulgaria’s Response and Deadline

Bulgaria needs to provide updates on addressing MONEYVAL’s recommendations by October 2022. Strengthening its AML/CFT framework is crucial to prevent and disrupt money laundering and financing of terrorism.

Importance of Financial Intelligence, Investigation, Prosecution, and Confiscation Regime

Financial intelligence, investigation, prosecution, and confiscation regime are essential components of an effective AML/CFT framework. Bulgaria is encouraged to implement these measures without further delay to combat money laundering and terrorist financing.