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Bulgarian Non-Governmental Organizations (NPOs) Exempt from Due Diligence Measures Under AML/CFT Act

Sofia, Bulgaria - Bulgarian Non-Governmental Organizations (NPOs) are exempt from the obligation to apply due diligence measures under the Anti-Money Laundering and Combating the Financing of Terrorism Act (AML/CFT Act), according to Article 11(4) of the law.

Definition of NPOs

The definition of NPOs is formulated in the Model Internal Rules published by the State Agency for National Security (SANS) based on § 1, item 9 of the Money Laundering Prevention Act (MLIPA).

According to the definition, NPOs are:

  • Legal persons
  • Other legal entities that are registered in an official public commercial or company register in a Member State or a third country

Exceptions

Hypotheses listed as exceptions in the Model Internal Rules published by SANS include:

  • Cases where electronic identification is used to verify customer identity
  • Where certification services provided for in Regulation (EU) No 910/2014 are used

Retention of Data and Information

Legal persons and other legal entities established on the territory of Bulgaria must keep data and information referred to in Article 61(1) for 5 years after the dissolution of the legal person or other legal entity, according to Article 67(8) of the Money Laundering Prevention Act.

FATF Guidelines

The Financial Action Task Force (FATF) has published guidelines on high-risk and other monitored jurisdictions. Bulgaria is not included in the list of high-risk jurisdictions, but NPOs must still comply with AML/CFT regulations to prevent money laundering and terrorist financing.

Conclusion

Bulgarian NPOs are exempt from due diligence measures under the AML/CFT Act, but they must still take appropriate measures to monitor their operations and transactions. The definition of NPOs is formulated in the Model Internal Rules published by SANS, and hypotheses are listed as exceptions in these rules.