Bulgaria

New Documents

The Organisation for Economic Co-operation and Development announced that Bulgaria ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Sharing.

The Organisation for Economic Co-operation and Development published policy papers assessing Bulgaria’s regulatory policy and public integrity sector.

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 | 2013 Methodology

Technical Effectiveness
Compliant : 2 High : 0
Largely Compliant : 15 Substantial : 5
Partially Compliant : 23 Moderate : 6
Non-Compliant : 0 Low : 0

BASEL i

Rank : 138/141
Score : 3.12/10

TRANSPARENCY INTERNATIONAL i

Rank : 69/179
Score : 44/100

Tax Justice Network i

Rank : 115/133
Score : 49/100