MONEYVAL calls on Bulgaria to improve the use of financial intelligence, investigation, prosecution, confiscation regime, and other measures to combat money laundering and terrorist financing..

** In a new report published today, the anti-money laundering organization of the Council of Europe MONEYVAL presents a comprehensive assessment of Bulgaria's compliance with the Financial Action Task Force (FATF) recommendations as of the visit in September2021. MONEYVAL calls on the Bulgarian authorities to improve the regulatory framework and strengthen the practical implementation of measures to combat money laundering and terrorist financing.

The organization notes that Bulgaria has achieved a moderate level of effectiveness in assessing money laundering and terrorism financing risks, as well as in the coordination, investigation, and prosecution of terrorism financing, the introduction of targeted financial sanctions in the context of terrorism financing, the implementation of preventive measures and supervision of financial institutions and non-professional sectors (accountants, lawyers, notaries, trustees, and company service providers, casinos, and real estate agents), as well as in international cooperation..

However, Bulgaria demonstrates a low level of effectiveness in areas related to the use of financial intelligence, investigations, and prosecution of money laundering, confiscation of criminal proceeds or property of equivalent value, targeted financial sanctions in the context of financing the proliferation of weapons of mass destruction, and preventing the abuse of legal entities.

MONEYVAL notes that Bulgaria needs to improve the use of financial intelligence, investigation, and prosecution of money laundering schemes, which are currently hindered by technical and procedural limitations. Additionally, the report highlights the need for a more systematic approach to investigating the financial aspects of terrorism-related crimes. Bulgaria should also enhance its national mechanism for implementing targeted financial sanctions and conduct a more comprehensive analysis of vulnerabilities in the financing of terrorism in non-profit sectors.

The report also states that the awareness of obligations regarding anti-money laundering and counter-terrorism financing among obligated entities is generally high; however, there is a need to improve the understanding of business-related risks and the implementation of preventive measures in high-risk areas.

The report also notes that there are no measures in place to prevent criminals from entering the market in certain sectors (such as real estate brokers, trust managers, company service providers, accountants, and virtual asset providers), which poses a certain risk. MONEYVAL recommends establishing such entry measures for the market and taking preventive actions to prevent illegal activities (hawala) without a license.

Despite Bulgaria's efforts to increase transparency regarding the actual ownership regime, significant issues arise concerning the reliability of information about actual ownership contained in registers and from entities subject to obligations. MONEYVAL strongly recommends an urgent review of the policy and the implementation of immediate measures in this area.

Finally, the report concludes that despite some technical and procedural limitations, Bulgaria is generally providing timely and constructive assistance within the framework of international cooperation, including mutual legal assistance.