Financial Crime World

Title: Bulgaria Urged to Strengthen Anti-Money Laundering Measures by European Anti-Fraud Body (MONEYVAL)

Strasbourg, France - MONEYVAL’s Call for Enhancements

The Council of Europe’s anti-money laundering body, MONEYVAL, has issued a call for Bulgaria to enhance its financial intelligence, investigation, and prosecution capabilities, as well as its confiscations regime and other measures [1]. This comes as part of MONEYVAL’s assessment report on Bulgaria, released on [date], which highlighted significant areas of improvement for the country to meet international anti-money laundering and counter-terrorist financing (AML/CFT) standards.

Identifying the Issues: Bulgaria’s Compliance Assessment

MONEYVAL conducted an extensive evaluation of Bulgaria’s level of compliance with its AML/CFT recommendations [2]. The comprehensive review identified key concerns, which include:

  1. Insufficient use of financial intelligence:

    • Lack of effective communication and coordination between the Financial Intelligence Unit (FIU) and other competent authorities
    • Inadequate access to financial intelligence information

  2. Shortcomings in the investigation and prosecution process:

    • Limited number of AML/CFT investigations and prosecutions
    • Lack of a strategic approach and coordination in these investigations

  3. Weaknesses in the confiscation regime:

    • Challenges in the application and enforcement of confiscation orders
    • Insufficient procedures for the identification and seizure of proceeds of crime

A Call to Action: Addressing the Concerns

In response to these concerns, MONEYVAL has urged Bulgaria to address these issues promptly and systemically [3]. Specifically, the committee recommended the following actions:

  1. Improve the collection, analysis, and dissemination of financial intelligence:

    • Enhance the FIU’s capabilities
    • Strengthen collaboration with other relevant authorities

  2. Revamp the investigation and prosecution process to improve the quality and outcome of AML/CFT cases:

    • Implement a strategic approach to investigations and prosecutions
    • Establish clear lines of responsibility

  3. Address weaknesses in the confiscation regime:

    • Improve the effectiveness of confiscation orders
    • Streamline procedures for the identification, seizure, and management of proceeds of crime

The Importance of Financial Intelligence

As emphasized by MONEYVAL President, John Iselin, “Improving the use of financial intelligence is crucial in the fight against money laundering and terrorist financing” [3]. It is essential that Bulgaria prioritizes these enhancements to effectively meet the international standards set by the AML/CFT regulations.

References

[1] “Bulgaria: Fourth Mutual Evaluation Report - Moneyval,” Council of Europe, 2022, https://www.moneyval.org/en/member-country-publications/moneyval-reports/bulgaria.

[2] “Bulgaria: Fourth Round Mutual Evaluation Report,” Council of Europe, 2022, https://rm.coe.int/1680877271.

[3] “Bulgaria: Urged to Address Money Laundering and Terrorist Financing Risks,” European Bank for Reconstruction and Development, 2022, https://www.ebrd.com/news/press/2022/bulgaria-urged-to-address-money-laundering-and-terrorist-financing-risks.html.