BULGARIA Law and Practice Contributed by: Nikolay Cvetanov, Boris Lazarov, Asen Apostolov and Patrizia Foffo, Penkov, Markov & Partners
Regulation (EU) 2024/1620 (Anti-Money Laundering) According to this regulation an Authority for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) authority will be established. Its purpose is to ensure more uniform and effective high-quality supervision and co-operation Union-wide in the fight against money laundering and terrorist financing. It will have the power to directly supervise high-risk entities in the financial sector (including banks), co-ordinate with national regulators, and con - tribute to the harmonisation of practices in the detection of suspicious transactions or activities by assisting Financial Intelligence Units (FIUs). Moreover, the regulation aims to support and co- ordinate the exchange of information between FIUs and between FIUs and other competent authorities. Key features of the regulation. • Direct supervision of selected high-risk finan - cial entities (including banks). • Co-ordination of AML/CFT supervision across the Union. • Co-operation with national FIUs to improve information exchange and analysis. • Harmonisation of supervisory practices across member states. The regulation, along with associated directives, will form the legal basis for the AML/CFT frame - work in the EU, with transposition into national law, including Bulgaria, by a set deadline, which is supposed to be 1 July 2025.
Directive (EU) 2024/1640 (Anti-Money Laundering) This Directive addresses mechanisms to prevent the use of the financial system for money laun - dering and terrorist financing at a national level. It amends earlier directives and regulations to strengthen the AML/CFT framework in the EU. It emphasises the importance of transparency via the registers for bank accounts and electronic data retrieval systems, the role of central reg - isters in tracking beneficial ownership and the interconnection of various automated mecha - nisms for monitoring financial transactions – like the intended requirements for the establishment of a Single Point of Access to information on real estate property in each member state for access by the relevant competent authorities. Naturally, this piece of legislation, along with the above- described Regulation (EU) 2024/1620 are of utmost importance for the banking sector, since the credit institutions are probably the most important gate-keepers when it comes to infil - tration of the economy with illicit financial flows. Generally, the directive is to be transposed into national laws by 10 June 2027, in all EU member states, including Bulgaria, whereas the deadline for certain aspects of the directive may differ – the changes to the central registers in track - ing the beneficial ownership and those for bank accounts and electronic data retrieval systems by 10 July 2026, the Single Point of Access to information on real estate property by 10 July 2029, etc.
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