Bulgaria

New Documents

The European Central Bank published a communiqué on Bulgaria regarding the inclusion of the Bulgarian lev in the Exchange Rate Mechanism and the country’s decision to join the Banking Union in conjunction with the implementation of certain measures, including an anti-money laundering framework.

The European Commission published a country report on Bulgaria for 2020, which assesses the country’s progress on structural reforms such as efforts to improve the supervision and enforcement of anti-money laundering measures.

News

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. State Department identifies Bulgaria as a jurisdiction of concern. Bulgaria is vulnerable to money laundering due to the country's prevalent use of cash transactions and the persistent problems with the rule of law. Laundered funds are derived primarily from domestic and foreign criminals engaging in human or drug trafficking, smuggling, tax fraud, cybercrime and the trade of contraband goods, including cigarettes, alcohol and fuel. Industries that often fall prey to laundering activities include tourism, gaming, retail, construction, healthcare and energy. Large-scale tax evasion has grown, especially evasion of value-added tax and excise duties. Bulgarian criminals often establish small businesses to hide laundered funds, increasingly in offshore territories. Casinos, night clubs, car dealerships, metal scrap collectors and shopping centers are common businesses associated with hiding laundered funds in Bulgaria. Public corruption remains a serious problem. In addition, domestic banks are more vulnerable than international banks due to less oversight and the use of riskier portfolios.
  • KYC Covered Entities: Banks, money exchangers, insurance companies, investment funds, notaries, gaming businesses, securities dealers, real estate brokers, political parties, sports clubs, nonprofit organizations (NPOs), lawyers, auditors, and accountants
  • STR Covered Entities:  Banks and money exchangers; insurance companies; investment funds; gaming businesses; securities dealers and company service providers; real estate brokers; political parties, professional organizations, and trade unions; sports clubs; NPOs; dealers of autos, arms, petrol, and petrochemical products; accountants, notaries, and lawyers
  • Enhanced Due Diligence Procedures for PEPs: Foreign: No; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 28 (Jan. 1 – Sept. 5, 2015); Convictions: 18 (Jan. 1 – Sept. 5, 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 12 High :
Largely Compliant : 27 Substantial :
Partially Compliant : 9 Moderate :
Non-Compliant : 0 Low :
Not-Applicable : 1

BASEL i

Rank : 138/141
Score : 3.12/10

TRANSPARENCY INTERNATIONAL i

Rank : 74/180
Score : 43/100

Tax Justice Network i

Rank : 115/133
Score : 49/100