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Strategy and policy
Reform Support

Enhancing the capabilities for risk-based AML supervision and financial intelligence in Bulgaria

Supporting reforms to develop well-regulated, stable and competitive financial markets

Funding Programme
Year
  • 2023

Enhancing the capabilities for risk-based AML supervision and financial intelligence in Bulgaria

The commission helped Bulgarian authorities in implementing MONEYVAL recommendations and international AML/CFT requirements through a 27-month project (September 2023 – November 2025).

Context

The European Union has constantly improved its regulatory framework to fight money laundering and terrorist financing and to align it with the recommendations from the Financial Action Task Force (FATF), the international standard setting body on anti-money laundering and countering the financing of terrorism. The Directive on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (AMLD) has been amended four times, notably extending the scope of crimes, professions and activities covered. In addition, the European Commission has proposed in July 2021 an ambitious legislative package with three objectives: 

  1. to strengthen EU anti-money-laundering rules and enhance their clarity while ensuring consistency with international standards and other EU legislation; 
  2. to improve the effectiveness and consistency of anti-money-laundering supervision;
  3. to increase the level of cooperation and exchange of information among Financial Intelligence Units (FIUs).

Support delivered

Over the course of the project, specific activities implemented by the Council of Europe include conducting an expert review of the Bulgarian FIU’s – the Financial Intelligence Directorate of State Agency for National Security (FID SANS) – approach to conducting risk-based supervision, by providing recommendations for further enhancing the data collection, as well as by training FID-SANS representatives on conducting risk-based supervision. Moreover, the Project contributes to strengthening FID-SANS’ strategic and operational analysis functions, by conducting training activities in this area, as well as by providing support in developing internal procedures and capacities on conducting strategic analysis. Training and related guidance document will also be provided in the field of open-source intelligence (OSINT) for operational and strategic analysis purposes. Finally, the project will also organise awareness raising activities for selected sectors of Obliged Entities (such as Designated Non-Financial Businesses and Professions, Virtual Assets Service Providers and electronic wallet providers) on current and emerging money laundering/terrorist financing (ML/TF) risks, trends and typologies, as well as on the submission of Suspicious Transaction Reports (STR). This will be accompanied by the development of guidance documents on STR reporting and on the implementation of related Terrorist Financing and Targeted Financial Sanctions obligations.

Results achieved

The expected long-term effect of this project is an enhanced AML/CFT regime in Bulgaria through strengthening Financial Intelligence Directorate of State Agency for National Security (FID-SANS)’ risk-based supervision and its operational and strategic analytical functions.