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Measures Against Money Laundering Act - Invest Bulgaria.com
Measures Against Money Laundering Act
Measures Against Money Laundering Act - Invest Bulgaria.com

Measures Against Money Laundering Act
Promulgated State Gazette No. 85/24.07.1998, amended and supplemented, SG No. 1/2.01.2001, amended, SG
No. 102/27.11.2001, effective 1.01.2002, amended and supplemented, 31/4.04.2003, amended, SG No.
103/23.12.2005, effective 1.01.2006, SG No. 105/29.12.2005, effective 1.01.2006, No. 30/11.04.2006, effective
12.07.2006, amended and supplemented, SG No. 54/4.07.2006, amended, SG No. 59/21.07.2006, effective on the day
of entry into force of the EU Treaty of Accession of the Republic of Bulgaria, SG No. 82/10.10.2006
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*Note: An update of the English text of this Act is being prepared
following the amendments in SG No. 96/28.11.2006, effective
1.01.2007, SG No. 108/29.12.2006, effective 1.01.2007


Chapter One
GENERAL PROVISIONS
Article 1
(Amended, SG No. 1/2001, No. 54/2006)
This Act shall regulate preventive measures against using the financial system for money laundering purposes, as well as
organisation and control over such measures.
Article 2
(Amended, SG No. 1/2001, No. 54/2006)
(1) Under this Act, money laundering shall be:
1. any transformation or transfer of property acquired through or in connection with any criminal activity or
participation therein in order to conceal the unlawful origin of such property, or abetting a person participating in such an
activity in order to avoid the legal implications of their actions;
2. concealing the nature, origin, location, allocation, movement or rights related to property acquired through criminal
activity or participation therein;
3. acquisition, possession, or use of property, with the knowledge at the time of receiving, that it has been acquired
through criminal activity or participation therein;
4. participation in any activity under Items 1-3, association for the purpose of performing such activity, attempt to
perform such activity, as well as abetting, inciting, facilitating performing of such activity or its concealment.
(2) Money laundering shall also be the case when the activity, through which the property under Paragraph 1 has been
acquired, has been performed in a European Union member state, or another country not falling under the jurisdiction of the
Republic of Bulgaria.
Article 3
(1) (Amended, SG No. 54/2006) The measures for prevention against using the financial system for money laundering
purposes shall be:
1. identification of clients and verifying their identification;
2. identification of the client's actual legal-person owner, and taking relevant measures to verify its identification in a
way providing enough grounds for the person under Paragraphs 2 and 3 to accept the actual owner as being established;
3. collection of information from the client regarding the purpose and the nature of the relationship, which has been
established or is to be established with the client;
4. ongoing monitoring of all established commercial or professional relations and verification of all transactions
performed within such relations to determine the extent, to which these comply with the available information on the client,
its commercial activity and risk profile, including clarification of the funds' origin in all cases under the law;
5. disclosure of information on any doubtful transactions and clients.
(2) The measures under Article 1 shall be mandatory for:
1. (Amended, SG No. 1/2001, 31/2003, No. 59/2006) The Bulgarian National Bank, credit institutions carrying on
activity within the territory of the Republic of Bulgaria, financial houses, exchange bureaus and the persons providing
services for funds transfer from the country abroad or vice versa, acting on their behalf on behalf of other persons;
2. (Supplemented, SG No. 31/2003, amended, SG No. 103/2005, No. 54/2006) Insurers, re-insurers, and insurance
agents, headquartered in the Republic of Bulgaria; insurers, re-insurers, and insurance agents from an European Union
Member State or a state - party to the Agreement on Establishment of the European Economic Area, which engage in
operations on the territory of the Republic of Bulgaria; insurers and re-insurers, headquartered in states, other than those
indicated, licensed by the Commission for Financial Supervision, to conduct operations in the Republic of Bulgaria through a
branch; insurance agents, headquartered in states, other than those indicated, listed in a Commission for Financial
Supervision registry;
3. (Amended and supplemented, SG No. 1/2001, amended, SG No. 54/2006) Mutual investment schemes,
investment intermediaries and management companies;
4. (New, SG No. 1/2001, amended, SG No. 54/2006) Retirement security companies;
5. (Renumbered from Item 4, amended, SG No. 1/2001) Privatisation authorities;
6. (Renumbered from Item 5, amended, SG No. 1/2001) Persons who organise the awarding of public procurement
orders;
7. (Renumbered from Item 6, SG No. 1/2001) Persons who organise and conduct gambling games;
8. (Renumbered from Item 7, SG No. 1/2001) Legal persons which have employee mutual aid funds;
9. (Renumbered from Item 8, SG No. 1/2001) Persons lending cash against a pledge of chattels;
10. (Renumbered from Item 9, SG No. 1/2001) Postal offices accepting or receiving money or other valuables;
11. (Renumbered from Item 10, SG No. 1/2001) Notaries public;
12. (Renumbered from Item 11, SG No. 1/2001, amended and supplemented, SG No. 31/2003) Exchanges,
exchange brokers and persons organising unlisted securities markets;
13. (Renumbered from Item 12, SG No. 1/2001) Leasing entities;
14. (Renumbered from Item 13, amended, SG No. 1/2001) State and municipal authorities executing concession
agreements;
15. (Renumbered from Item 14, SG No. 1/2001) Political parties;
16. (Renumbered from Item 15, SG No. 1/2001) Trade unions and professional organisations;
17. (Renumbered from Item 16, amended, SG No. 1/2001) Non-for-profit legal entities;
18. (Renumbered from Item 17, amended, SG No. 1/2001) Certified public accountants and specialised auditor
enterprises;
19. (Renumbered from Item 18, SG No. 1/2001, amended, SG No. 105/2005) National Revenue Agency authorities;
20. (Amended, SG No. 1/2001) Customs authorities;
21. (New, SG No. 1/2001; Amended, SG No. 31/2003) Merchants selling automobiles by occupation, where a
payment was made in cash and the value exceeded BGN 30,000 or its equivalent in a foreign currency;
22. (New, SG No. 1/2001) Sports organisations;
23. (New, SG No. 1/2001) The Central Depository;
24. (New, SG No. 1/2001; Amended, SG No. 31/2003) Persons dealing by occupation in high-value objects such as
precious metals, gems, objects of art, artefacts of historical, archaeological, numismatic, ethnographic, artistic or antique
collector's value and rock specimen, and any persons organising auctions for the sale of such objects where a payment was
made in cash and the value exceeded BGN 30,000 or its equivalent in a foreign currency;
25. (New, SG No. 1/2001) Merchants dealing in arms, petrol and petrochemical products;
26. (New, SG No. 1/2001; Amended, SG No. 31/2003) Persons providing, by occupation, advice in taxation
matters;
27. (New, SG No. 1/2001) Wholesale traders.
28. (New, SG No. 31/2003) Persons providing, by occupation, advice in legal matters, where they:
a) Participate in the planning or performance of a client deal or transaction concerning:
aa) Purchase or sale of a real property or transfer of a merchant's business;
bb) Management of cash, securities, or other financial assets;
cc) Opening or operating a bank account or a securities account;
dd) Raising funds to incorporate a merchant, increase the capital of a company, extend a loan or for any form of
raising funds for the business operations of such merchant;
ee) (Supplemented, SG No. 54/2006) Incorporate, organise operations or management of a company or another legal
person, an off-shore company, a company managed under a trust arrangement or any other such entity;
ff) (New, SG No. 54/2006) Fiduciary property management;
b) Act for the account or on behalf of their client in any financial or real property transaction;
29. (New, SG No. 31/2003) Persons providing real property intermediation by occupation;
30. (New, SG No. 54/2006) Persons, whose occupation is to provide:
a) management address, correspondence address, or office for the purpose of legal person registration;
b) legal person, off-shore company, fiduciary management company or similar entity registration services;
c) fiduciary management services for property or person under letter b).
(3) Measures under paragraph (1) shall be mandatory for the persons under paragraph (2) also when they have been
declared bankrupt and in liquidation.
(4) (Supplemented, SG No. 31/2003) Measures under paragraph (1) shall apply also to branches of persons under
paragraphs (2) and (3) registered abroad, and to branches registered in this country held by foreign persons falling within
the scope of those described in paragraphs (2) and (3).
(5) (New, SG No. 31/2003, repealed, SG No. 54/2006) .
(6) (New, SG No. 31/2003, amended, SG No. 54/2006) Persons, referred to in Paragraph (2), Item (28), shall not
be obliged to disclose under this Act any information obtained by them during or in relation to any court or preliminary
proceedings, which are pending, about to be open, or are closed, as well as any information related to establishing a client's
legal status.
(7) (New, SG No. 54/2006) All measures under Paragraph 1 shall be mandatory for all persons under Paragraph 2,
Item 24, also in cases when more than one transactions are performed, which individually do not exceed BGN 30 000 or
the equivalent in foreign currency thereof, but when the circumstances of the performance thereof provide grounds to
assume that these transactions are related.
Article 3a
(New, SG No. 31/2003)
(1) The authorities for supervision of the activities of persons referred to in Article 3, paragraphs (2) and (3) shall be
under the obligation to provide information to the Financial Intelligence Agency where, in the performance of their
supervision activities, they should establish any performance of a transaction or deal related to a suspected money
laundering or failure to meet the obligation prescribed in Article 11a.
(2) The examinations performed by the authorities referred to in paragraph (1) shall also include a check for the
compliance of examinees with the requirements of this Act. Where a violation is established, the supervision authorities shall
inform the Financial Intelligence Agency thereof by sending it an abstract from the relevant part of the memorandum of
findings.
(3) (New, SG No. 54/2006) The Financial Intelligence Agency and the supervisory authorities may exchange
classified information for the purpose of their legally established functions.
Article 3b
(New, SG No. 54/2006)
(1) Banks, registered on the territory of the Republic of Bulgaria, and foreign banks, performing activities on the
territory of the country through a branch, shall not enter in any partner (banking) relations with banks in jurisdictions, where
they do not have a physical presence, and do not belong to a regulated financial group.
(2) Banks, registered on the territory of the Republic of Bulgaria, and foreign banks, performing activities on the
territory of the country through a branch, shall not enter into any partner relations with banks outside the country, which
allow their accounts to be used by banks in jurisdictions, where they do not have physical presence, and do not belong to a
regulated financial group.
Article 3c
(New, SG No. 54/2006)
(1) Persons under Article 3, Paragraph 2 and 3 shall ensure application of all measures under this Act and all statutory
acts related to its application by its branches and affiliates, where they have majority interest, abroad to the extent made
possible by the relevant foreign legislation.
(2) If the legislation in the foreign country does not allow or if it restricts application of any measures under Paragraph
1, persons under Article 3, Paragraphs 2 and 3 shall notify the Financial Intelligence Agency and the respective supervisory
authority.
(3) Branches and affiliates, where persons under Article 3, Paragraphs 2 and 3, have majority interests abroad, shall
not be obliged to notify the Financial Intelligence Agency under Articles 11 and 11a.
Chapter Two
IDENTIFICATION OF CLIENTS; COLLECTION,
STORAGE AND DISCLOSURE OF INFORMATION
Section I
Identification of Clients
Article 4
(Supplemented, SG No. 1/2001, amended, SG No. 31/2003)
(1) (Amended, SG No. 54/2006) The persons under Article 3, Paragraphs 2 and 3, shall be bound to identify their
clients when business or professional relations are established, including when opening an account, and when executing a
transaction or concluding a deal of a value exceeding BGN 30,000 or its equivalent in foreign currency, and persons
referred to in Article 3, Paragraphs 2, Items 1-4, 9-11, 13 and 28, shall also be bound to do so in case of any cash
transaction exceeding BGN 10,000 or its equivalent in foreign currency. Opening and maintenance of an anonymous
account or an account under a dummy name shall not be allowed.
(2) Paragraph (1) shall also apply to cases of effecting more than one transaction or deal which separately does not
exceed BGN 30,000 or its equivalent in a foreign currency, or BGN 10,000 or its equivalent in a foreign currency,
respectively, but available data suggest that such transactions or deals are related.
(3) (Supplemented, SG No. 54/2006) The persons under Article 3, Paragraph (2), Item (7), shall be bound to identify
their clients following the procedure set out in Article 72, Paragraph (2) of the Gambling Act , as well as upon executing any
transaction or concluding a deal exceeding BGN 6,000 or its equivalent in foreign currency.
(4) (Amended, SG No. 54/2006) In cases, when person under Article 3, Paragraphs 2 and 3 is not able to identify the
client as required by this Act and the statutory acts on its application, as well as upon failure to submit a statement under
Paragraph 7, this person shall decline to execute the transaction or to enter into any commercial or professional relations,
including opening an account. If the person under Article 3, Paragraphs 2 and 3 is not able to identify the client in cases of
already established commercial or professional relations, this person shall terminate said relations. In such cases, the person
under Article 3, Paragraph 2 and 3 shall decide whether to notify the Financial Intelligence Agency under Article 11. This
provision shall not apply to persons under Article 3, Paragraph 2, Item 28 under the terms of Article 3, Paragraph 6.
(5) (Amended, SG No. 54/2006) In establishing commercial or professional relations or effecting a transaction or deal
by an electronic statement, electronic document or electronic signature, or any other form where the client is not present, the
persons referred to in Article 3, paragraphs (2) and (3) shall be under the obligation to undertake appropriate measures to
verify the client's identification data. Such measures may consist of checking the documents made available, requiring
additional documents, confirmation of identification by person, other than those referred to in Article 3, paragraphs (2) and
(3) or by a person under the obligation to apply anti-money laundering measures in an EU member country, or the
introduction of a requirement for the first payment involved in the transaction or deal to be made using an account set up in
the client's name with a Bulgarian bank, a branch of a foreign bank that has received permission (licence) from the Bulgarian
National Bank to operate in Bulgaria through a branch, or with a bank from an EU member country.
(6) The measures referred to in paragraph (5) shall be incorporated in the internal rules referred to in Article 16.
(7) Persons effecting a transaction or deal via or with a person referred to in Article 3, paragraphs (2) and (3) at a
value exceeding BGN 30,000 or its equivalent in foreign currency or, respectively, exceeding BGN 10,000 or its equivalent
in foreign currency where payment is made in cash, shall be bound to require the declaration prior to effecting such
transaction or deal.
(8) The format for the declaration referred to in paragraph (7) and under Article 6, paragraph (5), Item (3), the terms
and procedure for filing, as well as the terms and procedure for exception from the declaration requirement shall be
regulated in the rules for implementing this Act.
(9) No identification under paragraph (1) is to be made and no declaration under paragraph (7) is to be filed where the
client is a Bulgarian bank, a branch of a foreign bank that has received permission (licence) from the Bulgarian National
Bank to operate in Bulgaria through a branch, or with a bank from an EU member country, or a bank from a country named
in a list as endorsed under a joint order issued by the Minister of Finance and the Governor of the Bulgarian National Bank.
(10) The list referred to in paragraph (9) shall include countries the legislation of which provides for requirements
consistent with the requirements under this Act. The list shall be promulgated in the State Gazette.
(11) (Amended, SG No. 54/2006) In cases where, because of the nature of the transaction or deal, its value cannot
be determined as of the time it is effected, the person referred to in Article 3, paragraphs (2) and (3) shall be bound to
identify their client at such time when the value of such transaction or deal is determined if such value exceeds BGN 30,000
or its equivalent in foreign currency or, respectively, exceeds BGN 10,000 or its equivalent in foreign currency where
payment is made in cash. This case does not exclude the identification obligation when establishing commercial or
professional relations.
(12) (Amended, SG No. 103/2005) Persons referred to in Article 3, paragraph (2), Item (2) shall identify their clients
when executing an insurance contract under Section I of Annex 1 of the Insurance Code, where the per annum gross
amount of periodic premiums or instalments under such insurance contract is BGN 2,000 or more, or the premium or
instalment under such insurance contract is a one-time payment and amounts to BGN 5,000 or more.
(13) Persons referred to in Article 3, paragraphs (2) and (3) shall be under the obligation to identify their clients also
outside the cases referred to in paragraphs (1) through (12) where a suspicion of money laundering has arisen.
(14) (New, SG No. 54/2006) Persons under Article 3, Paragraphs 2 and 3 shall identify and verify the identifications
of their clients, when a suspicion in the client?s identification data arises, or when they have been notified on any change
thereof.
(15) (New, SG No. 54/2006) The verification of the clients? identification data and the real owners shall be
conducted before or during establishing commercial or professional relations, account opening or executing a transaction
under Paragraph 1, 2, or 3. The rules on application of this Act may provide an exception to this rule.
(16) (New, SG No. 54/2006) Persons under Article 3, Paragraph 2 and 3 may apply, depending on the potential risk
assessment, simplified or extended measures under Article 3, Paragraph 1 under terms and procedure, established by the
rules on application of this Act.
Article 5
(Amended, SG No. 1/2001)
(1) (Amended, SG No. 54/2006) Persons under Article 3, Paragraph 2 and 3 shall establish whether their client acts
on its own behalf and at its own expense or on behalf and at the expense of a third party. Where a transaction or deal is
effected through a representative, the persons under Article 3, paragraphs (2) and (3), shall be bound to request evidence
for the representative powers and to identify the representative and the person represented.
(2) (Amended, SG No. 54/2006) Where a transaction or deal is effected on behalf and at the expense of a third party
without proxy, the persons under Article 3, paragraphs (2) and (3) shall be bound to identify such third party, on whose
behalf the transaction has been executed, and the person executing the transaction.
(3) (New, SG No. 31/2003) In case of a suspicion that the person effecting the transaction or deal is not acting in their
own name and for their own account, persons referred to in Article 3, paragraphs (2) and (3) must make the notification
referred to in Article 11 and undertake proper measures to collect information for identifying the person in whose benefit
such transaction or deal is actually being effected. Such measures shall be specified in the rules for implementing this Act.
Article 5a
(New, SG No. 54/2006, effective 5.10.2006)
(1) Persons under Article 3, Paragraphs 2 and 3 shall apply extended measures in relation to clients who are currently
holding or have previously held a high government position in the Republic of Bulgaria or a foreign country, as well as any
clients, who are persons related to them.
(2) The Council of Ministers shall set forth the terms and procedure for application of Paragraph 1.
Article 6
(1) (Amended, SG No. 54/2006) Identification of clients and verification of identification thereof shall be done as
follows:
1. (Supplemented, SG No. 1/2001) In the case of legal persons - by presentation of official statement certifying their
current status issued by the respective register, and where such person is not subject to registration - by presentation of a
certified copy of the document of incorporation and registration of the name, domicile, address and the representative;
2. In the case of natural persons - by presentation of identity document and registration of its type, number and issuer,
as well as the name, address, unified civil registry number, and in addition, for natural persons having the qualifications of a
sole proprietor, by presentation of the documents under Item (1).
(2) (Repealed, SG No. 105/2005, new, SG No. 54/2006) Persons under Article 3, Paragraphs 2 and 3 shall identify
the natural persons, who are actual owners of a legal-entity client, as well as take action to verify their identification,
depending on the client type and the risk level resulting from establishing the client relationships and/or executing transactions
with client of such type. Upon lack of any other possibility, identification may be carried out through a statement, signed by
the legal person's legal representative of agent. The terms and procedure to identify and verify the identification, the terms
and procedure for release from the identification obligation, as well as the form and the procedure to submit the statement,
shall be set forth in the rules on the application of this Act.
(3) (New, SG No. 1/2001, amended, SG No. 31/2003) A photocopy shall be made of the documents referred to in
Paragraph (1), Items (1) and (2), except where the date contained therein are shown precisely in other documents issued by
the person referred to in Article 3, paragraphs (2) and (3) and are kept under the terms specified in Article 8.
(4) (New, SG No. 1/2001) In cases where an activity is subject to licensing, permission or registration, persons
effecting deals or transactions in relation to such activity shall present a copy of the respective license, permit or certificate of
registration;
(5) (Renumbered from Paragraph 3, amended, SG No. 1/2001, No. 31/2003) The persons under Article 3,
paragraph (2), Items (1), (2), (3), (4), (5), (6), (7), (10), (12), (14), (18), (19) and (20) shall set up special offices, which
shall:
1. Collect, process, store and disclose information about the specific transactions or deals;
2. Collect evidence of the ownership of the property subject to transfer;
3. (Amended, SG No. 1/2001) Require information about the origin of cash funds or valuables that are the subject of
the transaction or deal; the origin of such funds shall be certified by a declaration;
4. Collect information about their clients and maintain accurate and detailed documentation about their transactions
involving cash funds or valuables;
5. (Amended, SG No. 1/2001) In the event of a suspicion of money laundering, present the information collected as
per Items (1), (2), (3) and (4) to the Financial Intelligence Agency under the procedure set in Article 11.
(6) (Amended, SG No. 1/2001) The persons under Article 3, Paragraph (2), Items (1), (2), (3), (4), (5), (6), (7),
(10), (12), (14), (18), (19) and (20) shall perform the obligations personally, where it is not possible to set up a special
office. (7) (Amended, SG No. 1/2001, No. 31/2003) All persons under Article 3, paragraphs (2) and (3) shall perform their
obligations under this Act, whether they set up a special office or not.
Section II
Collection of Information
Article 7
(1) Where a suspicion for money laundering arises, the persons under Article 3, paragraphs (2) and (3), shall be
bound to collect information about the material components and the size of the transaction or deal, the respective documents
and other identification data.
(2) (Amended, SG No. 54/2006) The data collected for the purposes of this Act shall be documented and stored in a
way providing access to the Financial Intelligence Agency, the relevant supervisory authorities, and the auditors.
Article 7a
(New, SG No. 54/2006, effective 5.10.2006)
(1) Persons under Article 3, Paragraphs 2 and 3 shall place under special monitoring their commercial or professional
relations, and transactions involving persons from countries, which do not apply or apply fully the international standards
against money laundering.
(2) When the transaction under Paragraph 1 has no logical economic explanation or readily visible grounds, persons
under Article 3, Paragraph 2 and 3 shall collect to the extent possible additional information on any circumstances related to
the transaction, as well as its purpose.
(3) Countries, which do not apply or apply fully international standards against money laundering, shall be specified in
a list, approved by the Minister of Finance. Any measures against such countries shall be set forth in the rules on application
of this Act.
Section III
Storage of Information
Article 8
(Amended, SG No. 1/2001)
In the cases under Articles 4- 7, the persons under Article 3, paragraphs (2) and (3), shall be bound to keep the
documents and data about clients and about transactions or deals for a period of 5 years following their completion. For
clients, the period shall commence from the beginning of the calendar year following the year of terminating the relationship,
and for deals and transactions it shall commence from the beginning of the calendar year following the year of effecting the
latter.
Article 9
(Amended, SG No. 1/2001)
The data and documents under Article 8 shall be provided to the Financial Intelligence Agency upon request, in the
original or a transcript certified ex officio. The procedure, time and regular periods for that shall be established in the
implementation rules of the Act.
Section IV
Disclosure of Information
Article 10
(Amended and supplemented, SG No. 1/2001, amended, SG No. 31/2003)
(1) The Financial Intelligence Agency shall be an administration reporting to the Minister of Finance which shall obtain,
store, investigate, analyse and disclose information obtained under the terms and procedure specified in this Act.
(2) The Agency referred to under paragraph (1) shall be a legal person financed by the public budget and domiciled in
Sofia.
(3) The structure, organisation of operation and the number of staff of the Agency shall be ruled by Statutes adopted
by the Council of Ministers.
(4) The Financial Intelligence Agency shall be represented and directed by a director who shall be appointed by the
Minister of Finance, in agreement with the Prime Minister, for a period of 5 years without any limitation as to the number of
reappointments.
(5) The person eligible for appointment as the Agency's Director must
1. Hold a master's degree in law or economics and have at least 5 years of experience in the respective field,
2. Not have been convicted with a sentence that has come into effect for a premeditated crime of a public nature;
3. Not be a sole proprietor, an unlimited partner in a company, a manager or executive member of a company, agent
or procurator.
4. Not have been declared bankrupt as a sole proprietor or an unlimited partner in a company;
5. Not have been a member of a managing or supervisory body of a company or, respectively, a co-operative, that
has been terminated due to bankruptcy in the last two years preceding the date of appointment, if there are unsatisfied
creditors.
(6) The Agency's Director may not engage in any other activity for a pay except for teaching or research, or as a
member of an international organization in connection with the activity of the Agency.
(7) Circumstances referred to in Paragraph (5), Items (3), (4) and (5), and in paragraph (6) shall be certified in a
statement of declaration.
(8) The Agency's Director may be released prematurely by the Minister of Finance, in agreement with the Prime
Minister, prior to the expiry of the term specified in paragraph (1):
1. Upon the former's written resignation;
2. In the case of an objective impossibility to perform his duties that has continued for more than 6 months;
3. In case of a sentence that has come into effect for a premeditated crime of a public nature or if deprived in a court
process of the right to hold the respective position;
4. In case of a severe or systemic violation of this Act or the relevant implementation legislation.
(9) The Minister of Finance shall assign a deputy minister of finance who shall perform the functions of a chief
inspector of financial intelligence envisaged in this Act or in another piece of legislation.
(10) The Chief Financial Intelligence Inspector may at any time conduct an inspection or assign an inspector from the
Ministry of Finance to inspect the activity of the Financial Intelligence Agency and to request a report from the Agency's
Director. The Director must provide the report within the time period specified by the Chief Financial Intelligence Inspector.
(11) The Chief Financial Intelligence Inspector may not make any decisions or provide guidelines on issues within the
competence of the Director of the Financial Intelligence Agency or directly affecting the performance of its functions.
(12) The Minister of Finance shall approve the annual report on the activity of the Financial Intelligence Agency which
shall be prepared by the Agency's Director.
(13) (Supplemented, SG No. 54/2006) The Financial Intelligence Agency may make use as external experts
representatives of the Bulgarian National Bank, the Commission for Financial Supervision, the Ministry of the Interior, the
Ministry of Justice, the judiciary and other experts.
(14) (Supplemented, SG No. 54/2006) Interaction between Financial Intelligence Agency and the Bulgarian National
Bank, the Commission for Financial Supervision, the security and public order services, the National Investigation Office
and the Prosecution Office shall be regulated by Instructions issued by the Minister of Finance and, respectively, the
Governor of the Bulgarian National Bank, the Minister of the Interior, the Minister of Defence, the Director of the National
Investigation Office and the Chief Prosecutor.
(15) Interaction between the Financial Intelligence Agency and the administrative units under the Minister of Finance
shall be maintained following a procedure established by the Minister of Finance.
Article 11
(1) (Amended and suplemented, SG No. 1/2001) Where money laundering has been suspected, the persons under
Article 3, paragraphs (2) and (3), shall be bound to notify the Financial Intelligence Agency immediately prior to the
completion of the transaction or deal while delaying its execution within the allowable time as per the regulations dealing with
the respective type of activity.
(2) (Amended, SG No. 1/2001) In case a delay in the transaction or dealis objectively impossible, the person under
Article 3, paragraphs (2) and (3) shall notify the Financial Intelligence Agency immediately after its completion.
(3) (New, SG No. 1/2001) Notification of the Agency may be done also by personnel of the persons under Article 3,
paragraphs (2) and (3) that are not responsible for enforcing anti-money laundering measures. The Agency shall protect the
anonymity of such personnel.
(4) (New, SG No. 54/2006) The Financial Intelligence Agency shall provide the person under Article 3, Paragraph 2
and 3, and under Article 3a information, related to the notification made thereby. The decision on the volume of information,
which has to be returned for each particular notification case, shall be taken by the Agency director.
Article 11a
(New, SG No. 31/2003- effective 01.01.2004)
(1) Persons referred to in Article 3, paragraphs (2) and (3) shall notiy the Financial Intelligence Agency of any
payment in cash at a value exceeding BGN 30,000 or its equivalent in foreign currency made by or to any of their clients.
(2) The Financial Intelligence Agency shall keep a register of payments referred to in paragraph (1). The register may
only be used for the purposes of counteracting money laundering.
(3) The procedure and time terms for the provision of the information referred to in paragraph (1) shall be determined
in the rules for implementing this Act.
Article 11b
(New, SG No. 31/2003)
(1) The Customs Agency shall provide the Financial Intelligence Agency ith the information about trade credits
involved in export and import, about financial leasing between domestic and foreign persons and about the export and
import of Bulgarian Leva and foreign currency in cash, which information is being collected under the terms and procedure
of the Currency Act.
(2) The procedure for the provision of the information referred to in paragraph (1) shall be determined by the Minister
of Finance.
Article 11c
(New, SG No. 31/2003)
(1) The Financial Intelligence Agency and the security and public order services shall exchange classified information
related to the functions as established by law that they perform. The decision concerning the volume of information that
ought to be provided for each individual case shall be made by the Agency's Director, or the Director of the security and
public order service, respectively.
(2) The procedure for the exchange of information, and to the methods o its protection shall be determined in the joint
instructions referred to in Article 10, paragraph (14).
Article 12
(Amended, SG No. 1/2001)
(1) (Amended, SG No. 54/2006) In cases under Articles 11 and 18, the Minister of Finance may, upon a proposal by
the Director of the Financial Intelligence Agency, put a stay, by an order in writing, on a certain transaction or deal for a
period of up to 3 business days as of the day following the issuance of the order. If no preventive measure, impoundment or
injunction are imposed within that period, the person under Article 3, paragraphs (2) and (3), shall be free to execute the
transaction or deal.
(2) The Financial Intelligence Agency shall notify the Prosecutor's Offce immediately of the stay on the transaction or
deal, providing the relevant information while protecting the anonymity of the person under Article 3, paragraphs (2) and (3)
that has made the notification under Article 11 or 18.
(3) The prosecutor may impose a preventive measure or file a request wih the relevant court to impose an
impoundment or injunction. The court ought to adjudicate on the request within 24 hours of it submission.
(4) (Supplemented, SG No. 31/2003, amended, SG No. 54/2006) When, in the course of investigation and analysis
of any information obtained under this Act, the suspicion in money laundering has not been cleared, the Financial Intelligence
Agency shall disclose this information to the prosecutor?s office or to the relevant security and public order service, while
preserving the anonymity of the person under Article 3, Paragraphs 2 and 3, and under Article 3a, and of its employees,
making the notification under Articles 11 or 18.
Article 13
(Amended, SG No. 1/2001)
(1) (Amended, SG No. 31/2003) In case of notification under Article 11 or 18, the Intelligence Agency may request
information about suspicious transactions, deals or clients from the persons under Article 3, paragraphs (2) and (3), with the
exception of the Bulgarian National Bank, the banks and banks headquartered abroad that have received permission
(licence) from the Bulgarian National Bank to operate in Bulgaria through a branch. The information requested shall be
provided within the time period set by the Agency.
(2) (Amended and supplemented, SG No. 31/2003, amended, SG No. 54/2006) In case of written notification under
Article 11 or 18 by a person under Article 3, paragraph (2) and in the case of a request for information under Article 22,
the Intelligence Agency may request information about suspicious transactions, deals or clients from the Bulgarian National
Bank, the banks and banks headquartered abroad that have received permission (licence) from the Bulgarian National Bank
to operate in Bulgaria through a branch. The information requested shall be provided within the time period set by the
Agency.
(3) The Financial Intelligence Agency may request information under the terms of Paragraph (1) from state and
municipal authorities, which information cannot be denied. The information requested shall be provided within the time
period set by the Agency.
(4) In setting the time period under paragraphs (1) through (3), the Agency shall take into consideration the volume
and contents of the information requested.
(5) (Amended, SG No. 31/2003) For analysis purposes, the Intelligence Agency shall receive from the Bulgarian
National Bank information gathered under Article 7 of the Currency Act.
(6) The Financial Intelligence Agency shall be entitled to access, freeof charge, to information registers set up and
maintained with public budget funds.
(7) The provision of information under paragraphs (1) through (6) may nt be refused or restricted due to
considerations of official, banking or commercial secrecy.
Article 14
(1) (Amended and supplemented, SG No. 1/2001, supplemented, SG No. 31/2003, previous Article 14, SG No.
54/2006) The persons under Article 3, paragraphs (2) and (3), persons who manage and represent them, and their
personnel may not notify their client or any third party of the disclosure of the information in the cases under Articles 9, 11,
11a, 13, 17 and 18.
(2) (New, SG No. 54/2006) The information disclosure ban under Paragraph 1 shall not apply to the relevant
supervisory authority under Article 3a.
Article 15
(1) (Amended, SG No. 1/2001, No. 31/2003, previous Article 15, SG No. 54/2006) Disclosure of information in the
cases specified under Articles 9, 11, 11a, 13, 17 and 18 shall not result in any liability for violation of other laws or a
contract.
(2) (New, SG No. 54/2006) Under the terms of Paragraph 1, no liability shall arise also in cases, when it has been
established that no crime has been committed, and the transactions have been legal.
Section V
Protection of Information
(New, SG No. 1/2001)
Article 15a
(New, SG No. 1/2001)
(1) (Amended, SG No. 31/2003) The Financial Intelligence Agency may use information constituting of official,
banking or commercial secrets, and protected private information obtained under the terms and following the procedure set
in Articles 9, 11, 11a, 13, 17 and 18 solely for the purposes of this Act.
(2) (Amended, SG No. 31/2003) Officers of the Financial Intelligence Agency, the chief financial intelligence
inspector, inspectors assigned an inspection under Article 10, paragraph (10), and the experts under Article 10, paragraph
(13), shall not disclose or use to their own benefit or to the benefit of any persons related to themselves any information or
facts constituting of official, banking or commercial secrets that they have become aware of in the performance of their
office. (3) (Amended, SG No. 31/2003) Officers of the Agency, the chief financil intelligence inspector, inspectors assigned
an inspection under Article 10, paragraph (10), and the experts under Article 10, paragraph (13), shall sign confidentiality
protection agreements for secrets referred to under Paragraph (2).
(4) (Amended, SG No. 31/2003) The provision set in paragraph (2) shall lso apply to cases where the said persons
are not in office or the execution of the task for which they had been assigned under Article 10, paragraphs (10) and (13)
has been completed.
Chapter Three
INTERNAL ORGANISATION AND CONTROL
Article 16
(1) (Amended, SG No. 1/2001, No. 31/2003) The persons under Article 3, paragraphs (2) and (3), shall be bound to
adopt, within 4 months following their registration, internal rules for the control and prevention of money laundering, which
shall be approved by the Director of the Financial Intelligence Agency.
(2) (Supplemented, SG No. 54/2006) The internal rules under paragraph (1) shall establish clear criteria for detecting
suspicious transactions or deals and clients, the procedure for personnel training and the use of technical means for the
prevention and detection of money laundering, as well as a system for internal control over the implementation of all
measures under this Act.
(3) (New, SG No. 1/2001) The internal rules under Paragraph (1) shall b submitted to the Director of the Financial
Intelligence Agency for endorsement within 14 days of their adoption.
(4) (New, SG No. 31/2003) Professional organisations or associations ofthe persons referred to in Article (3),
paragraphs (2) and (3), in agreement with the Financial Intelligence Agency, may adopt uniform internal rules for money
laundering control and prevention to which rules the members of such organisations and associations may subscribe within
the time period set in paragraph (1) by means of a statement of declaration. Such uniform internal rules and statements of
declaration shall be sent to the Financial Intelligence Agency within the time period set in paragraph (3).
Article 17
(1) (Amended, SG No. 1/2001) Control for the enforcement of this Act shll be exercised by the Minister of Finance
and the Director of the Financial Intelligence Agency.
(2) (New, SG No. 1/2001) The control bodies of the Financial Intelligene Agency shall make site inspections of the
persons under Article 3, paragraphs (2) and (3) on the enforcement of money laundering prevention and detection
measures, and in the case of suspected money laundering.
(3) (New, SG No. 1/2001) The control bodies of the Financial Intelligene Agency shall be those of its officials as
assigned by the Agency's Director.
(4) (New, SG No. 1/2001) Inspections under paragraph (1) may be conductd jointly with the authorities for which a
special law delegates the exercise of supervision of the persons under Article 3, paragraphs (2) and (3).
(5) (New, SG No. 1/2001) Inspections shall be conducted on the basis ofa written order issued by the Minister of
Finance or the Director of the Financial Intelligence Agency, stating the goals, time period and place of the inspection, the
person inspected and the names and positions of inspectors.
(6) (New, SG No. 1/2001) The persons under Article 3, paragraphs (2) an (3), the central and local government
authorities and their personnel shall be obliged to co-operate with the control bodies of the Financial Intelligence Agency in
the execution of their duties.
(7) (New, SG No. 1/2001) In conducting site inspections, control bodies under paragraph (3) shall be entitled to free
access to office premises of the persons under Article 3, paragraphs (2) and (3), and to request documents and gather
information relevant to the execution of the task assigned to them.
Article 17a
(New, SG No. 1/2001)
(1) The Minister of Finance shall, upon a nomination by the Director of the Financial Intelligence Agency, determine
the officers who have the right to additional compensation for working within the system of Financial Intelligence, and the
individual amount of such compensation for each officer.
(2) The funds under Paragraph (1) shall be determined at 25 per cent of the annual total amount of salary expenditure
under the budget of the Financial Intelligence Agency for the respective year and shall be included in the State Budget Act
for that year.
(3) Thirty per cent of all funds collected from penalties imposed under this Act shall be remitted as revenue to the
budget of the Financial Intelligence Agency and be used for capital investment in improving facilities and equipment, for
training and for participation in international events.
(4)The procedure for estimating and spending the funds under paragraph (3) shall be laid down in a Regulation of the
Minister of Finance.
(5) Officers of the Agency must be covered by insurance against accident and by life insurance policies.
Article 18
(Amended and supplemented, SG No. 1/2001, amended, SG No. 54/2006)
The Financial Intelligence Agency may receive information on suspicion for money laundering, apart from the persons
under Article 3, Paragraphs 2 and 3, also from government authorities and through international exchange.
Article 19
(Amended, SG No. 54/2006)
(1) Should a person under Article 3, Paragraph 2 fail to fulfil its obligations under this Act, the Minister of Finance may
order such a person to take specific measures as necessary to eliminate the violations or revoke the licence issued thereto, if
issued by him, or order the licence to be deleted from the registry for the relevant activity, if there is a registration regime.
(2) The issuing authority for the licence of a person under Article 3, Paragraph 2 may revoke the licence issued acting
at its discretion or upon proposal by the Minister of Finance made under Paragraph 1.
Article 20
(Amended, SG No. 30/2006, No. 54/2006)
The acts under Article 19 may be appealed pursuant to the Administrative Procedure Code.
Chapter Four
INTERNATIONAL CO-OPERATION
Article 21
(Amended, SG No. 1/2001, repealed, SG No. 54/2006)
Article 22
(Amended, SG No. 1/2001)
(1) (Amended, SG No. 31/2003, supplemented, SG No. 54/2006) The Financial Intelligence Agency shall, at its own
initiative and in the case of requests for information, exchange information on cases involving suspected money laundering
with the respective international authorities, European Union authorities, and with authorities of other states on the basis of
international treaties and reciprocity.
(2) (New, SG No. 31/2003) The Agency's Director shall execute, amend and terminate international treaties
concerning the exchange of information on cases related to a suspected money laundering, under the terms and following the
procedures set out in the International Treaties of the Republic of Bulgaria Act.
Chapter Five
ADMINISTRATIVE AND PENAL PROVISIONS
Article 23
(1) (Amended, SG No. 1/2001, No. 31/2003) A person who commits a violation or allows commitment of violation
pursuant to Articles 4, 5, 6, 7, 8, 9, 13, 15a, and Article 17, paragraphs (6) and (7) or refuses to cooperate, provide
documents or information or ensure access as referred to in Article 17, paragraph (7) shall be punished by fine of BGN 500
to BGN 10,000, unless such an offence constitutes a crime.
(2) (Amended, SG No. 31/2003, amended, SG No. 54/2006) A person who commits a violation or allows
commitment of violation pursuant to Articles 11, 11a and 14, shall be punished by fine of BGN 5,000 to BGN 20,000, if
the offence does not constitute a crime.
(3) (Amended, SG No. 1/2001) A person who commits, or allows another to commit a violation pursuant to Article
16 shall be punished by fine of BGN 200 to BGN 2,000.
(4) (Amended, SG No. 54/2006) Where a violations under paragraphs (1), (2) and (3) has been committed by a sole
proprietor or a legal person, financial sanctions shall be imposed to the amount of BGN 2,000 to BGN 50,000.
(5) (New, SG No. 54/2006) If a person commits or allows a violation under this Act or the statutory acts on its
application to be committed, outside of cases under Paragraphs 1-4, shall be imposed a fine of BGN 500 to BGN 2,000.
(6) (New, SG No. 54/2006) When the violation under Paragraph 5 has been committed by a sole proprietor or a
legal person, financial sanction to the amount of BGN 1,000 to BGN 5,000 shall be imposed.
Article 24
(1) (Amended, SG No. 1/2001, supplemented, SG No. 54/2006) Statements of ascertainment of violation shall be
drawn up by the control authorities of the Financial Intelligence Agency, whereas penal orders shall be issued by the
Minister of Finance or an official appointed thereby.
(2) The preparation of statements, the issuance, appeal and execution of penal orders shall be done pursuant to the
procedure specified in the Administrative Violations and Penalties Act.
ADDITIONAL PROVISION
§ 1. In the meaning of this Act,
1. (Amended, SG No. 54/2006) "Commercial or professional relation" shall be any relation, associated with the
occupation of the institutions and persons bound under this Act, and assumed to have an element of continuity by the
moment the relation is established.
2. (Amended, SG No. 54/2006) "Regulated financial group" shall be any financial group, which is subject to effective
consolidated supervision;
3. (Repealed, SG No. 54/2006) .
4. (New, SG No. 31/2003) "Security services" shall be the National Intelligence Service, the National Security
Service with the Ministry of the Interior, the Protection of Communication Means Directorate with the Ministry of the
Interior, and the Military Police and Military Counterintelligence Security Service with the Ministry of Defence.
5. (New, SG No. 31/2003, amended, SG No. 82/2006) "Public order services" shall be the National Police Service
with the Ministry of the Interior.
6. (New, SG No. 31/2003) "A supervision authority" shall be a government authority empowered by law or another
piece of legislation to exercise overall control over the activity of a person referred to in Article 3, paragraphs (2) and (3).
TRANSITIONAL AND CONCLUDING PROVISIONS
§ 2. This Act shall repeal the Measures Against Money Laundering Act (SG, No. 48/1996).
§ 3. The persons under Article 3, paragraphs (2) and (3), shall be bound to submit to the Financial Intelligence
Agency, within 3 months following the coming of this Act into force, any available information related to money laundering.
§ 4. The persons under Article 3, Paragraph (2), Items (1), (2), (3), (4), (5), (9), (11), (13) and (18) shall be bound
to bring their organisation and activities in compliance with the requirements of this Act and to submit their internal rules
under Article 16 to the Minister of Finance, within 5 months following the coming of this Act into force.
§ 5. In Article 10 of the Administrative Violations and Penalties Act (Promulgated, SG No. 92/1969, amended, SG
No. 54/1978, No. 28/1982, Nos. 28 & 101/1983, No. 89/1986, No. 24/1987, No. 97/1990, No. 105/1991, No.
59/1992, No. 102/1995, Nos. 12 & 110/1996, and Nos. 11, 15 & 59/1998), after the words "persons concealing", a
comma shall be placed, and the phrase "as well as allowing" shall be added.
§ 6. The implementation of this Act shall be hereby assigned to the Council of Ministers, which shall adopt Rules for its
implementation within two months of the effective date of this Act. This Act was passed by the 38th National Assembly on
9 July 1998 and the State Seal was affixed thereto.
ACT ON THE AMENDMENT AND SUPPLEMENT
TO THE MEASURES AGAINST MONEY LAUNDERING ACT
Promulgated State Gazette No. 31/04.04.2003
TRANSITIONAL AND CONCLUDING PROVISIONS
§ 20. (1) Persons referred to in Article 3, paragraphs (2) and (3) for which the obligation to apply measures against
money laundering has arisen prior to the adoption of this Act shall bring their internal rules referred to in Article 16 into
compliance with the requirements of the Act and send them to the Financial Intelligence Agency within 4 months following
the coming into force of this Act.
(2) Persons referred to in Article 3, paragraphs (2) and (3) for which the obligation to apply measures against money
laundering has arisen pursuant to this Act shall adopt their internal rules under Article 16 and send them to the Financial
Intelligence Agency within the time terms referred to in paragraph (1).
§ 28. (1) All assets, liabilities, records and any other rights and obligations of the Financial Intelligence Bureau Agency
shall be taken over by the Financial Intelligence Agency.
(2) Grandfathered legal relations of employment and service shall not be terminated, and Article 123 of the Labour
Code shall apply accordingly.
Lev Re-denomination Act
Promulgated, State Gazette No.
20/5.03.1999, amended, SG No. 65/20.07.1999 (effective 5.07.1999).
TRANSITIONAL AND FINAL PROVISIONS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
§ 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as
indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures
expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms,
reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have
entered or will enter into force after the 5th day of July 1999.
(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force
prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in
conformity with this Act so that the amendments apply as from the date of


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