Financial Crime World

Title: International Efforts to Counter Financial Crime in Bulgaria: MONEYVAL’s Role

Bulgaria, a small EU country, has been attracting international attention due to its efforts in combating financial crimes like money laundering, terrorism financing, and the financing of weapons of mass destruction. The country is undergoing an evaluation by the Council of Europe’s Moneyval (MONEYVAL), a specialized organization against money laundering and terrorist financing. This article discusses the ongoing evaluation process and Bulgaria’s endeavors to strengthen its financial framework.

MONEYVAL’s Evaluation of Bulgaria (MER 6)

  • Bulgaria’s evaluation by MONEYVAL (Mutual Evaluation Round 6) started in 2022 and is estimated to finish in 2024.
  • Experts from MONEYVAL evaluate Bulgaria’s legal framework, institutions, and operational capacity against financial crimes.

Bulgaria’s Crusade Against Financial Crimes

Financial Supervision Commission (FSC)

The Financial Supervision Commission (FSC) is a key player in this battle, collaborating closely with MONEYVAL.

  • FSC adopted the EU’s Fifth Anti-Money Laundering Directive (5AMLD) in January 2020.

Bulgaria’s Actions against Money Laundering and Terrorism Financing

Bulgaria has intensified measures to combat financial crimes:

  1. Legal Framework Improvement:

    • Bulgaria’s Money Laundering Prevention Act came into effect in July 2022.

  2. Establishment of a Financial Intelligence Unit (FIU):

    • The FIU was founded in April 2022, joining the FIU network of the European Union.

  3. Increased Regulatory Supervision and Transparency:

    • Enhanced monitoring and supervision of financial transactions, especially in high-risk sectors like real estate and gambling.
    • Strengthened transparency measures.

The Timing of MONEYVAL’s Evaluation

MONEYVAL’s evaluation comes at a crucial time, as Bulgaria progresses with strengthening its financial framework after joining the EU’s European Exchange Rate Mechanism (ERM II) in January 2023.

Challenges and Future Collaboration

Despite international recognition, Bulgaria faces challenges in addressing weaknesses in the regulatory system and raising public awareness to mitigate risks.

  • Bulgaria continues to collaborate with financial regulatory bodies like MONEYVAL and the European Central Bank.
  • The conclusions and recommendations from MONEYVAL’s evaluation are expected to further strengthen Bulgaria’s efforts and contribute to the global fight against financial crimes.