Financial Crime World

Bulgaria Strengthens Whistleblower Protection Laws to Combat Financial Crimes and Breaches of EU Law

New Legislation Aims to Protect Whistleblowers Reporting Financial Crimes and EU Law Violations

Sofia, Bulgaria - The Bulgarian National Assembly has adopted a new law aimed at protecting whistleblowers who report or publicly disclose information on breaches of Bulgarian legislation or acts of the European Union. This legislation aims to ensure the protection of persons in the public and private sectors who report or publicly disclose such information acquired in a work-related context.

Key Provisions of the Whistleblowing Law

  • Employers with 50 or more workers or employees, as well as those operating in certain sectors, are required to establish internal reporting channels and follow specific procedures for handling reports.
  • Employers must provide clear information on the reporting process and maintain records of received reports.
  • Whistleblowers are protected from retaliation, including dismissal, demotion, or financial loss, and can seek compensation for any material and non-material damages suffered.

Sanctions for Breaches

  • Legal entities found in breach of the obligations under the law may face sanctions ranging from BGN 400 (approximately EUR 200) to BGN 20,000 (approximately EUR 10,200).

Central National Authority for External Reporting and Protection

  • The Commission for Personal Data Protection has been designated as the central national authority for external reporting and protection of whistleblowers.
  • The commission will give methodological instructions to obligated entities, adopt forms and regulations, and perform other powers attributed to it by virtue of the law.

Scope of the Whistleblowing Law

The Whistleblowing Law applies to reports or public disclosure of information about:

  • Breaches affecting the financial interests of the European Union
  • Cross-border tax arrangements
  • Committed crimes
  • Breaches of labor legislation or rules for payment of due public state and municipal receivables

KPMG’s Support

KPMG’s legal advisory services team remains available to provide guidance on the interpretation and application of the Whistleblowing Law. For more information, please contact:

  • Juliana Mateeva at +359 2 9697 600
  • Dilyana Dimitrova at +359 2 9697 600

Conclusion

This new law is expected to play a significant role in combating financial crimes and breaches of EU law in Bulgaria, and KPMG is committed to helping businesses navigate the complexities of this regulation.