BULGARIA Law and Practice Contributed by: Nikolay Cvetanov, Boris Lazarov, Asen Apostolov and Patrizia Foffo, Penkov, Markov & Partners
Internal rules for AML and CTF control All procedures, including those related to CDD, reporting and risk assessment, must be docu - mented in the bank’s internal rules. These rules must be regularly updated and include proce - dures for sharing information within the bank’s group (if applicable) and ensuring AML/CTF compliance across the bank’s branches and subsidiaries. AML training for staff Banks must provide initial and ongoing train - ing to their employees on the requirements of the AML Act, the CFT Act, and related Internal Rules). The training programmes must equip employees with the knowledge to identify sus - picious transactions, customers and operations, and to take appropriate action when money laundering or terrorist financing is suspected. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) The Bank Deposit Guarantee Act (BDGA) pro - vides for a legal framework on the reliable func - tioning of the bank deposit guarantee system and the protection of depositors, as well as the organisation, objectives, functions and operation of the Bulgarian Deposit Insurance Fund (BDIF). The BDGA applies to all banks which have been licensed according to the procedure established in CIA to receive deposits or other repayable funds from the public, as well as to the branches set up in other EU states by any such banks. The BDGA furthermore applies, if certain conditions are met, to the branches of any bank having its head office in a third country, which has been licensed by the BNB to pursue business activity in the Republic of Bulgaria. Should these criteria be satisfied, the deposits are guaranteed by the BDIF.
certificates of good standing and other docu - ments proving ownership and control structures. If these documents are insufficient, a declaration from the legal representative or proxy may be required. Notification of discrepancies to the Registry Agency (RA) Starting in July 2024, obliged entities, including banks, must notify the RA if they identify discrep - ancies between the collected data and the pub - licly reported information on UBOs during CDD. All relevant documentation must be enclosed. Upon receiving such notification, the RA officers will request the entity in question to resolve the discrepancies within a strict timeframe. Reporting suspicious transactions SANS has introduced specialised software called “goAML” for analysing financial intelli - gence. Obliged entities, such as banks, can use this system to electronically submit reports on suspicious activity, knowledge of money laun - dering, funds of criminal origin, and terrorism financing. Filings on paper with SANS are still possible. Risk assessment Banks are required to adopt Individual Risk Assessments in order to identify, understand, and assess risks related to money laundering and terrorist financing. These assessments must adhere to the National Risk Assessment and align with guidelines from the ECB, which the BNB follows. Record-keeping Banks are required to retain all CDD-related information for five years after the conclusion of the business relationship or occasional transac - tion.
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