BULGARIA Law and Practice Contributed by: Nikolay Cvetanov, Boris Lazarov, Asen Apostolov and Patrizia Foffo, Penkov, Markov & Partners
A person may be appointed as a member of the management board only after prior approval by the BNB, which must be issued within 60 days after all of the required documents have been submitted with the authority. The BNB may refuse to issue an approval if the person does not meet the requirements, if the required docu - ments have not been submitted or the submitted documents contain incomplete, contradictory or false information, as well as if the person does not have a good reputation. The fitness and pro - priety assessment carried out by the regulatory authority is very detailed and comprehensive. Screening Requirements In case of re-election of а member of the of the management board for another term, a new approval by the BNB is not necessary, unless there is a change in the held position, which requires a new suitability assessment. The com - mercial bank should in any case keep track of whether the relevant members of the manage - ment board meet the requirements for occupy - ing the relevant position. 4.3 Remuneration Requirements Individuals Subject to Remuneration Requirements Each bank shall adopt a remuneration policy to be applied to the following individuals: • members of the management board (or respectively board of directors) and the supervisory board; • senior management; • employees responsible for the management of independent risk management depart - ments, legal compliance departments and internal audit departments or significant busi - ness units of the bank; and • employees who received in the past finan - cial year significant remuneration and meet
certain conditions regarding their professional activity. Remuneration Principles The applied remuneration policy shall (i) pro - mote effective risk management and discourage excessive risk-taking, (ii) be in line with the busi - ness strategy, objectives, values and long-term interest of the bank, (iii) incorporate measures to avoid conflict of interest, and (iv) be gender neutral. Furthermore, the remuneration policy should include different criteria, determining the fixed and variable remuneration of individuals. The fixed remuneration shall depend on the relevant professional experience and organisational responsibilities of the individual and the vari - able remuneration – on the sustainable, effec - tive and risk-adjusted performance, as well as performance beyond the job description. The Bulgarian Measures Against Money Laun - dering Act (the “AML Act”) transposes the provi - sions of the 4th and 5th AML Directives into the national law. Bulgaria’s Know Your Customer (KYC) statutory requirements are in line with the requirements of the said EU acts. To support reporting enti - ties in fulfilling their Customer Due Diligence (CDD) duties, the AML Act requires that all enti - ties declare their Ultimate Beneficial Owners (UBOs). Such information must be submitted to either the Commercial Register and the Register for Non-Profit Organisations (for companies and 5. AML/KYC 5.1 AML and CFT Requirements General Regulatory Framework Key legislative acts
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