LAW ON MEASURES AGAINST MONEY LAUNDERING IN BULGARIA.

 

 

Reflected the denomination of 05.07.1999.

 

Obn. 85 of 24 July 1998, amend. SG No. 1 of 2 January 2001, amend. SG 31 of 4 April 2003, amend. SG 103 of 23 December 2005, amend. SG 105 of 29 December 2005, amend. SG 30 of 11 April 2006, amend. SG 54 of 4 July 2006, amend. SG 59 of 21 July 2006, amend. SG 82/10/2006, amend. SG 108 of 29 December 2006, amend. SG 52 of 29 June 2007, amend. SG 92 of 13 November 2007, amend. SG 109 of 20 December 2007, amend. SG 16 of 15 February 2008, amend. SG 36 of 4 April 2008, amend. SG 67 of 29 July 2008, amend. SG 69 of 5 August 2008, amend. SG 22 of 24 March 2009, amend. SG 23 of 27 March 2009, amend. SG 93 of 24 November 2009, amend. SG 88 of 9 November 2010, amend. SG 101of 28 December 2010, amend. SG 16 of 22 February 2011, amend. SG 48 of 24 June 2011, amend. SG 57 of 26 July 2011, amend. SG 96 of 6 December 2011, amend. SG 44/12 June 2012, amend. SG 60 of 7 August 2012, am. and suppl. SG 102 of 21 December 2012, am. and suppl. SG 52 of 14 June 2013, amend. 1 of 3 January 2014, suppl. 22 of 11 March 2014, amend. SG No. 53 of 27 June 2014, am. and suppl. SG 14 of 20 February 2015, amend. 79 of 13 October 2015, suppl. 27 of 5 April 2016, amend. 81 of 14 October 2016, amend. SG 96 of 1 December 2017, suppl. 7 of 19 January 2018, amend. 27 of 27 March 2018.

 

Repealed by § 31 of the Transitional and Final Provisions of the Anti-Money Laundering Measures Act - SG 27 of 27 March 2018, in force from 31 March 2018.

 

Chapter one.

GENERAL

  

Art. 1. (amend. - SG 54/06) This Law establishes measures for the prevention of the use of the financial system for the purpose of money laundering, as well as the organisation and control of their implementation.

 

Art. 2. (amend. - SG 54/06) (1) Money laundering within the meaning of this Law shall be:

 

1. the transformation or transfer of property obtained from a criminal activity or from an act of participation in such an activity in order to conceal or disguise the illegal origin of the property or to assist a person who participates in the commission of such an act in order to avoid the legal consequences of his act;

 

2. the concealment or disguise of the nature, source, location, disposition, movement or rights in respect of property derived from criminal activity or from an act of participation in such activity;

 

3. the acquisition, possession, holding or use of property with knowledge at the time of receipt that it is derived from criminal activity or from an act of participation in such activity;

 

4. participation in any of the acts referred to in paragraphs 1 to 3, association for the purpose of committing such an act, attempt to commit such an act, as well as aiding, abetting, facilitating or concealing the commission of such an act.

 

(2) Money laundering shall also exist where the activity from which the property referred to in par. 1 is committed in a Member State of the European Union or in another State and does not fall under the jurisdiction of the Republic of Bulgaria.

 

 

 

Art. 3. (1) (amend. - SG 54/06) The measures to prevent the use of the financial system for money laundering purposes shall be:

 

1. identification of customers and verification of their identification;

 

2. identification of the beneficial owner of the customer, who is a legal person, and taking appropriate action to verify his identification in a manner which provides sufficient grounds for the person referred to in paragraphs 2 and 3 to assume that the beneficial owner has been identified;

 

3. collecting information from the customer as to the purpose and nature of the relationship which has been or is to be established with him;

 

4. ongoing monitoring of the commercial or professional relationship established and verification of the transactions and operations carried out within the framework of that relationship, as far as they correspond to the information available on the client, on its commercial activities and risk profile, including clarification of the origin of funds in the cases specified by law;

 

5. disclosure of information regarding suspicious transactions, transactions and customers.

 

(2) The measures referred to in par. 1 shall be mandatory for:

 

1. (amend. - 1. - (1) 2001, SG 31/03, amend. - SG 59/06, in force from 01.01.2007, amend. - SG 16/08, amend. - SG 23/09, in force from 01.11.2009, amend. - SG 101/10, in force from 30.04.2011) the Bulgarian National Bank, credit institutions operating on the territory of the Republic of Bulgaria, financial institutions, exchange offices, as well as other payment service providers;

 

2. (suppl. - SG 31/03, amend. - SG 103/05, in force from 01.01.2006, amend. - SG 54/06) insurers, reinsurers and insurance intermediaries with their registered office in the Republic of Bulgaria; insurers, reinsurers and insurance intermediaries from a Member State of the European Union or a State party to the Agreement on the European Economic Area, which carry out their activities on the territory of the Republic of Bulgaria; insurers and reinsurers with their registered office in countries other than the aforementioned, licensed by the Financial Supervision Commission to carry out their activities in the Republic of Bulgaria through a branch of the Financial Supervision Authority.

 

3. (amend. - SG 1/01, amend. - SG 54/06) collective investment schemes, investment intermediaries and management companies;

 

4. (new - SG 1/01, amend. - SG 54/06, suppl. - SG, issue no. 92 of 2007, amend. - SG 60/07, in force from 07.08.2012) pension insurance companies;

 

5. (former item 4, amend. - SG 1/01) privatisation bodies;

 

6. (former item 5, amend. - SG 1/01) persons organising the award of public contracts;

 

7. (former item 6 - SG 1/01) persons organising and conducting gambling;

 

8. (former item 7 - SG 1/01) legal entities to which there are mutual funds;

 

9. (former item 8 - SG 1/01) persons who grant a loan of money against the pledge of property;

 

10. (former item 9 - SG 1/01, amend. - SG 57/11) postal operators licensed to carry out postal money transfers pursuant to the Postal Services Act;

 

11. (former item 10 - SG 1/01) notaries;

 

12. - SG 31/03, amend. - SG 52/07, in force from 01.11.2007) market operator and/or regulated market;

 

13. (former item 12 - SG 1/01) leasing undertakings;

 

14. (former item 13, amend. - SG 1/01, amend. - SG No. 96 of 2017, in force from 02.01.2018) ministers and mayors of municipalities when concluding concession contracts;

 

15. (former item 14 - SG 1/01) political parties;

 

16. (former item 15 - SG 1/01) professional unions and professional organisations;

 

17. (former item 16, amend. - SG 1/01) non-profit legal entities;

 

18. (former item 17, amend. - SG 1/01, amend. - SG 67/08) registered auditors;

 

19. (former item 18 - SG 1/01, amend. - (18) bodies of the National Revenue Agency;

 

20. (former item 19, amend. - SG 1/01) customs authorities;

 

21. (new - SG 1/01, suppl. - 21, SG 31/03, amend. - SG 16/11)

 

22. (new - SG 1/01) sports organisations;

 

23. (new - SG 1/01) the Central Depository;

 

24. (new - SG 1/01, amend. - 24, SG 31/03, amend. - SG, issue no. 92 of 2007, amend. - SG 16/11)

 

25. (new - SG 1/01) dealers in arms, petroleum and petroleum products;

 

26. (new - SG 1/01, amend. - SG 31/03) persons who by profession carry out consultations in the field of taxation;

 

27. (new - SG 1/01) wholesalers;

 

28. (new - SG 31/03) persons who by profession carry out legal consultancy, when:

 

(a) are involved in the planning or execution of an operation or transaction for a client concerning:

 

(aa) the purchase or sale of immovable property or the transfer of a business to a trader;

 

(bb) the management of money, securities or other financial assets;

 

(cc) opening or disposing of a bank or securities account;

 

(dd) the raising of funds for the incorporation of a trader, for the increase of the capital of a trading company, for the making of a loan or for any other form of raising funds for the carrying on of the trader's business;

 

ee) (suppl. - SG 54/06) establishment, organisation of the activity or management of a trader or other legal entity, offshore company, company held in trust or other similar structure;

 

(f) (new - SG 54/06) trust management of property;

 

(b) act for or on behalf of a client in any financial or real estate transaction;

 

29. (new - SG 31/03) persons who carry out, by profession, mediation in real estate transactions;

 

30. (new - SG 54/06) persons who by profession provide:

 

(a) a management address, a correspondence address or an office for the purposes of registration of a legal person;

 

(b) a service for the registration of a legal entity, offshore company, trust company or other similar structure;

 

(c) services of a trustee of property or of a person referred to in point (b);

 

31. (new - SG 57/2011) persons who provide accounting services by profession;

 

32. (new - SG 57/2011) private bailiffs;

 

33. (new - SG 22/14), the Executive Director of the Executive Environment Agency in his capacity as national administrator within the meaning of Commission Regulation (EU) No 389/2013 of 2 May 2013 establishing an EU Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decisions No 280/2004/EC and No 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulations (EU) No 920/2010 and (EU) No 1193/2011 (OJ L 122/1 of 3 May 2013).

 

(3) The measures referred to in par. (3) The measures referred to in paragraph (1) shall also be binding on the persons referred to in paragraph (2) when they are declared bankrupt and in liquidation.

 

(4) (suppl. - SG 31/03) The measures referred to in par. (1) shall also apply to the branches abroad registered of the persons referred to in paragraphs (2) and (3), as well as to the branches registered in the country of foreign persons falling within the scope referred to in paragraphs (2) and (3).

 

(5) (new, SG 31/03, amend., SG 54/06)

 

(6) (New, SG 31/03, amend., SG 54/06) The persons referred to in paragraph 2, item 28 shall not be obliged to communicate under this Act the information which has become known to them in the course of or in connection with participation in judicial or pre-trial proceedings which are pending, are about to be opened or have been concluded, as well as the information related to the establishment of the legal position of a client.

 

(7) (New, SG 54/06, amend., SG 16/11)

 

 

 

Art. 3а. (New, SG 31/03) (1) (amend. - SG 109/07), (109, in force from 01.01.2008) The bodies for supervision over the activity of the persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to provide information to the Financial Intelligence Directorate of the State Agency "National Security" if, in the course of their supervisory activity, they establish the performance of operations or transactions related to suspicion of money laundering or non-compliance with the obligation under Article 11a.

 

(2) (amend. - SG 109/07, in force from 01.01.2008) In the inspections carried out by the bodies referred to in par. 1 shall include verification of compliance with the requirements of this Law by the persons inspected. In the event of a finding of a violation, the supervisory authorities shall notify the Financial Intelligence Directorate of the State Agency for National Security by sending an extract from the finding report in the relevant part.

 

(3) (new - SG 54/06, amend. - (54, SG No 109/2007, in force from 01.01.2008) The Financial Intelligence Directorate of the State Agency "National Security" and the supervisory authorities may exchange classified information for the purposes of their statutory functions.

 

 

 

Art. 3б. (New, SG 54/06) (1) Banks established in the territory of the Republic of Bulgaria and foreign banks operating in the territory of the country through a branch shall be prohibited from entering into correspondent (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 established in the territory of the Republic of Bulgaria and foreign banks operating in the territory of the country through a branch may not establish correspondent relations with banks outside the country that allow their accounts to be used by banks in jurisdictions where they do not have a physical presence and do not belong to a regulated financial group.

 

Art. 3в. (New, SG 54/06) (1) The persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to ensure the implementation of the measures under this Law and the regulations implementing it by their branches and subsidiaries in which they have a majority participation abroad to the extent that the relevant foreign legislation allows.

 

(2) (Suppl. - (2) (a) the foreign country of origin shall not apply to the foreign country of origin. 92 of 2007, amend. - (2) If the legislation of the foreign State does not allow or restricts the application of the measures referred to in par. 1, the persons referred to in Article 3(2) and (3) shall be obliged to notify the Financial Intelligence Directorate of the State Agency for National Security and the relevant supervisory authority, as well as to take additional measures in accordance with the risk, which shall be determined by the regulations for the implementation of the law.

 

(3) (amend. - SG 109/07, in force as of 01.01.2008) Branches and subsidiaries in which the persons referred to in Article 3, paragraphs 2 and 3 have a majority participation abroad shall not be obliged to notify the Financial Intelligence Directorate of the State Agency for National Security pursuant to Articles 11 and 11a.

 

 

 

Chapter two.

IDENTIFICATION OF CUSTOMERS, COLLECTION, STORAGE AND DISCLOSURE OF INFORMATION

 

Section I.

Identification of clients

 

 

 

Art. 4. (amend. - SG 31/03) (1) (amend. - SG 54/06), (amend. - SG 102/12) The persons referred to in Article 3(2) and (3) shall be obliged to identify their clients when establishing commercial or professional relations, including when opening an account, as well as when carrying out a transaction or concluding a transaction with a value exceeding BGN 30 000. or their equivalent in a foreign currency, and the persons referred to in Article 3(2)(1)-(4), (9)-(11), (13), (28) and (32) - also when carrying out a transaction or concluding a transaction in cash in excess of BGN 10 000 or their equivalent in a foreign currency. It shall not be permitted to open or maintain an anonymous account or an account in a fictitious name.

 

(2) Paragraph (1) shall also apply in the case of more than one operation or transaction which individually do not exceed BGN 30 000 or their equivalent in a foreign currency, respectively BGN 10 000 or their equivalent in a foreign currency, but there is evidence that the operations or transactions are related.

 

(3) (Suppl. - 54 of 2006, amend. - The persons referred to in Article 3, paragraph 2, item 7 shall be obliged to identify their clients in accordance with Article 6 when entering the register referred to in Article 74, paragraph 1 of the Law on Foreign Exchange. 1 of the Gambling Act, as well as when carrying out a transaction or concluding a transaction with a value exceeding BGN 6000 or their equivalent in foreign currency.

 

(4) (amend. - 54 of 2006, amend. - 109 of 2007, in force from 01.01.2008) In the cases where the person referred to in Article 3, paragraph 2 and 3 cannot carry out the identification of the customer in accordance with the requirements of this Law and the acts implementing it, as well as in the case of failure to submit a declaration under paragraph 1 of this Article, the person referred to in Article 3, paragraph 2 and 3 shall not be able to identify the customer. 7, it shall be obliged to refuse to carry out the operation or transaction or to establish a commercial or professional relationship, including the opening of an account. If the person referred to in Article 3(2) and (3) is unable to identify the customer in cases where a commercial or professional relationship has already been established, he shall be obliged to terminate that relationship. In such cases, the person referred to in Article 3(2) and (3) shall decide whether to notify the Financial Intelligence Directorate of the State Agency for National Security pursuant to Article 11. This provision shall not apply to the persons referred to in Article 3(2)(28) under the conditions of Article 3(6).

 

(5) (amend. - SG 54/06) When establishing a commercial or professional relationship or carrying out an operation or transaction by means of an electronic statement, electronic document or electronic signature or any other form without the presence of the client, the persons referred to in Article 3(2) and (3) shall be obliged to take appropriate measures to authenticate the client's identification data. Such measures may be verification of the documents presented, requesting additional documents, confirmation of the identification by another person referred to in Article 3(2) and (3) or by a person obliged to apply anti-money laundering measures in a Member State of the European Union, or establishing a requirement that the first payment under the operation or transaction be made through an account opened in the name of the customer with a Bulgarian bank, a branch of a foreign bank authorised (licensed) by the Bulgarian National Bank to operate in the country through a branch, or a bank of a Member State of the European Union.

 

(6) The measures under paragraph 5 shall be included in the internal rules under Article 16.

 

(7) Persons carrying out a transaction or a transaction through or with a person referred to in Article 3, paragraphs 2 and 3 with a value exceeding BGN 30,000 or their equivalent in foreign currency, respectively exceeding BGN 10,000 or their equivalent in foreign currency when the payment is made in cash, shall be obliged to declare the origin of the funds. The persons referred to in Article 3(2) and (3) shall be obliged to request the declaration before the relevant operation or transaction.

 

(8) The form of the declaration referred to in par. 7 and under Article 6, paragraph 5, item 3, the conditions and procedure for its submission, as well as the conditions and procedure for exemption from the obligation to declare shall be regulated by the regulations for the implementation of the law.

 

(9) (amend. - SG 92/07) A person referred to in Article 3, paragraphs 2 and 3 shall not make an identification referred to in Article 3, paragraph 1. 1 and does not require the submission of a declaration under par. 7 by a client which is a credit institution from the Republic of Bulgaria, from another Member State or a bank from a third country included in a list approved by a joint order of the Minister of Finance and the Governor of the Bulgarian National Bank.

 

(10) In the list under par. 9 shall include countries whose legislation contains requirements corresponding to the requirements of this Law. The list shall be promulgated in the State Gazette.

 

(11) (amend. - SG 54/06) In the cases where due to the nature of the operation or transaction its value cannot be determined at the moment of its execution, the person referred to in Article 3, paragraphs 2 and 3 shall be obliged to identify the customer at the moment when the value of the operation or transaction is determined, if it is over BGN 30 000 or their equivalent in foreign currency, respectively over BGN 10 000 or their equivalent in foreign currency when the payment is made in cash. This case does not exclude the obligation to identify when establishing a commercial or professional relationship.

 

(12) (amend. - SG 103/05, in force from 01.01.2006) The persons referred to in Article 3, paragraph 2, item 2 shall identify their customers when concluding an insurance contract in accordance with Section I of Annex No 1 to the Insurance Code, where the gross amount of the periodic premiums or contributions under the insurance contract for one year is BGN 2 000 or more, or the premium or contribution under the insurance contract is a single premium or contribution and is BGN 5 000 or more.

 

(13) The persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to identify their clients and, outside the cases referred to in paragraph (1), they shall be obliged to identify their customers. 1 - 12, when suspicion of money laundering arises.

 

(14) (new, SG 54/06) The persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to identify and verify the identification of their clients whenever a doubt arises as to the client's identification data or they are notified of a change thereof.

 

(15) (New, SG 54/06, amended, SG 92/07) The verification of the identification of the clients and beneficial owners shall be carried out before the establishment of a commercial or professional relationship, the opening of an account or the carrying out of a transaction or a transaction referred to in paragraph 1. 1, 2 и 3. An exception to this rule may be provided for in the implementing rules.

 

(16) (New, SG 54/06) The persons referred to in Article 3, paragraphs 2 and 3 may, depending on the assessment of the potential risk, apply simplified or extended measures as referred to in Article 3, paragraph 2 and 3. 1 under the conditions and in accordance with the procedure laid down in the implementing rules.

 

(17) (new - SG 92/07) Identification pursuant to Art. 3, par. 1 shall not be made and a declaration under par. 7 shall not be submitted where the client is a public authority of the Republic of Bulgaria.

 

(18) (new - SG 92/07) Identification under par. 1 shall not be made and a declaration under par. 7 shall not be submitted where the client is an institution exercising authority in accordance with European Union law under the following conditions:

 

1. the person referred to in Article 3(2) and (3) has gathered sufficient information not to raise doubts as to the identity of the institution;

 

2. the institution complies with accountability and operational procedures and is transparent;

 

3. the institution is accountable to a Community authority, to a Member State authority or has verification procedures in place to ensure that its activities are monitored.

 

(19) (new - SG 92/07, amend. - SG 102/12) Where a bank account of a person referred to in Article 3(2)(11) and (28) from the Republic of Bulgaria, from another Member State or from a State included in the list referred to in para. 9, is used for depositing amounts of its customer, the bank shall not carry out identification under Art. 3, par. 1 of that customer and shall not require a declaration under par. 7, provided that the identification has been made and the declaration accepted by the person referred to in Article 3(2)(11) and (28) respectively and the information collected in the identification is available to the bank on request.

 

(20) (new, SG 102/12) Where a bank account of a person referred to in Article 3(2)(32) is used for the funds received by the person from the redemption of the debtors' property or in connection with the additional activity carried out pursuant to Article 18 of the Private Bailiffs Act, the bank shall not carry out identification pursuant to Article 3(2)(32). 1 of the customer and does not require a declaration under par. 7, provided that the identification has been made and the declaration has been accepted by the person referred to in Article 3(2)(32) and the information collected in the identification is available to the bank upon request.

 

(21) (new - SG 102/12) The Bank shall collect sufficient information to establish whether the conditions for the application of the simplified measures referred to in par. 19 and 20 are complied with.

 

(22) (New, SG 92/07, former par. 20, SG 102/12) The persons referred to in Article 3, par. 2 and 3 may not apply simplified measures referred to in Article 3, par. 1 to persons from countries included in the list referred to in Article 7a, par. 3.

 

 

 

Art. 5. (amend. - SG 1/01) (1) (amend. - SG 54/06) The persons referred to in Article 3(2) and (3) shall be obliged to establish whether the client is acting in his own name and on his own account or in the name and on behalf of a third party. If the operation or transaction is carried out through a representative, the persons referred to in Article 3(2) and (3) shall require proof of the representative's authority and shall identify the representative and the represented.

 

(2) (amend. - SG 54/06) If the operation or transaction is carried out in the name and on behalf of a third person without authorisation, the persons referred to in Article 3, paragraphs 2 and 3 shall identify the third person in whose name and on whose behalf the operation or transaction is carried out and the person who carried out the operation or transaction.

 

(3) (new, SG 31/03) Where it is suspected that the person carrying out a transaction is not acting in his own name and on his own account, the persons referred to in Article 3(2) and (3) shall carry out the notification referred to in Article 11 and take appropriate measures to gather information to identify the person for whose benefit the transaction is actually carried out. The measures shall be determined by the implementing rules.

 

 

 

Art. 5a. (new - SG 54/06, in force from 05.10.2006) (1) The persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to apply extended measures in respect of clients who hold or have held a senior state position in the Republic of Bulgaria or in a foreign country, as well as in respect of clients who are persons related to them.

 

(2) The Council of Ministers shall determine the conditions and procedures under which par. 1.

 

 

 

Art. 5b. (new - SG 92/07) (1) A credit institution referred to in Article 3, paragraph 2, item 1 shall, when entering into correspondent relations with a credit institution from a third country outside the list referred to in Article 4, paragraph 1, be subject to the following provisions 9shall:

 

1. gather sufficient information about the respondent credit institution to enable it to fully understand the nature of the business and to determine, on the basis of publicly available information, the reputation of the institution and the quality of its supervision;

 

2. assess the internal controls against money laundering and terrorist financing implemented by the respondent credit institution;

 

3. establish an arrangement whereby the establishment of new correspondent banking relationships is to take place only after prior approval by a person in a senior position at the credit institution;

 

4. allocate responsibilities to each of the two correspondent institutions for the implementation of anti-money laundering and counter-terrorist financing measures, with the allocation documented accordingly.

 

(2) In the cases referred to in par. (1), where third party customers of the correspondent institution also have access to the correspondent account of a credit institution, the credit institution referred to in Article 3(2)(1) shall ensure that the correspondent institution carries out identification, verification of identification and ongoing monitoring of the third party customers who have direct access to the account and that the correspondent institution is able to provide the necessary identification and other details of those customers on request.

 

Art. 5c. (new - SG 92/07) The persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to apply extended measures in respect of products or transactions which could lead to anonymity, under the conditions and in the manner determined by the regulations for the implementation of the law.

 

 

 

Art. 6. (1) (amend. - SG 54/06) The identification of customers and the verification of their identification shall be carried out:

 

1. (suppl. - SG 1/01) for legal entities - by submitting an official extract of their current status from the relevant register, and if the entity is not subject to registration - a certified copy of the articles of incorporation and registration of the name, registered office, address and representative;

 

2. for natural persons - by presenting an official identity document and registering its type, number, issuer, as well as the name, address, unique civil number, and for natural persons having the status of a sole trader - by presenting the documents referred to in item 1.

 

(2) (New, SG 54/06) The persons referred to in Article 3(2) and (3) shall identify the natural persons who are the beneficial owners of a client - legal person, and shall take action to verify their identification, depending on the type of client and the level of risk arising from the establishment of the client relationship and/or the performance of transactions or operations with such type of client. In the absence of any other possibility, identification may be made by means of a declaration signed by the legal representative or attorney of the legal person. The conditions and procedure for identification and verification of identification, the conditions and procedure for exemption from the obligation to identify, as well as the form and procedure for submitting the declaration, shall be determined by the regulations implementing the law.

 

(3) (new, SG No. 1/2001, amended, SG No. 31/2003) The documents referred to in par. 1, items 1 and 2 shall be copied, unless the data contained therein are accurately reflected in other documents drawn up by the person referred to in Article 3, paragraphs 2 and 3, and shall be kept under the conditions of Article 8.

 

(4) (New, SG No. 1/2001) Where an activity is subject to licensing, authorisation or registration, persons carrying out transactions and operations in connection with that activity shall produce a copy of the relevant licence, authorisation or registration certificate.

 

(5) (former paragraph 3, amend. - SG 1/2001, amend. - SG 31/2003) The persons referred to in Article 3, paragraph 2, items 1, 2, 3, 4, 5, 6, 7, 10, 12, 14, 18, 19 and 20 shall establish specialized offices which:

 

1. collect, process, store and disclose information on specific operations or transactions;

 

2. collect evidence concerning the ownership of the property to be transferred;

 

3. require information on the origin of the funds or valuables which are the subject of the operations or transactions; the origin of these funds shall be certified by declaration;

 

4. (amend. - SG 96/11, in force from 01.01.2012) collect information about their clients and keep accurate and detailed records of their transactions with cash or valuables, including the information and documents referred to in Article 6 of the Foreign Exchange Act;

 

5. (amend. - 5. - 109 of 2007, in force as of 01.01.2008) in case of suspicion of money laundering, provide the information collected under items 1, 2, 3 and 4 to the Financial Intelligence Directorate of the State Agency "National Security" in accordance with the procedure of Article 11.

 

(6) (former para. 4, amended, SG No. 1/2001) The persons referred to in Article 3, para. 2, items 1, 2, 3, 4, 5, 6, 7, 10, 12, 14, 18, 19 and 20 shall perform their duties personally when it is not possible to establish a specialised service.

 

(7) (former paragraph 5, amended, SG No. 1/2001, amended, SG No. 31/2003) All persons referred to in Article 3, paragraphs 2 and 3 shall perform their duties under this Act irrespective of whether they establish a specialised service.

 

Art. 6a. (new - SG 92/07) (1) The Bulgarian National Bank, the credit institutions referred to in Article 3, paragraph 2, item 1, as well as the persons referred to in Article 3, paragraph 2, items 2, 3 and 4, may refer to a previous identification of the customer made by a credit institution under the following conditions:

 

1. the head office of the credit institution which carried out the identification is in the Republic of Bulgaria, in another Member State or in a country on the list referred to in Article 4(4)(a). 9;

 

2. the credit institution required under Article 6(1) of Regulation (EC) No 1093/2010 shall be established in a Member State other than that referred to in Article 6(1) of Regulation (EC) No 1093/2010. 1 to 4 is available to the person who relies on a previous identification made by the credit institution;

 

3. on request, the credit institution which made the previous identification is able to provide the person relying on that identification with certified copies of the identification documents without delay.

 

(2) The reference to a previous identification under par. (1) shall not relieve the person relied upon from liability for failure to comply with the identification requirements of Article 6(1). 1 - 4.

 

 

 

Section II.

Collection of information

 

 

 

 

 

Art. (1) Where money laundering is suspected, the persons referred to in Article 3(2) and (3) shall be obliged to collect information concerning the essential elements and size of the transaction or transaction, the relevant documents and other identifying data.

 

(2) (amend. - SG 54/06, amend. - (54) The information collected for the purposes of this Law shall be documented and stored so that it is available to the Financial Intelligence Directorate of the State Agency for National Security, the relevant supervisory authorities and auditors.

 

 

 

Art. 7а. (new - SG 54/06, in force from 05.10.2006) (1) The persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to place under special surveillance their business or professional relations, operations and transactions with persons from countries which do not apply or do not fully apply international standards in the fight against money laundering.

 

(2) Where the operation or transaction referred to in par. (1) does not have a logical economic explanation or an apparently legitimate reason, the persons referred to in Article 3(2) and (3) shall gather, as far as possible, additional information on the circumstances of the operation or transaction and its purpose.

 

(3) (Amend. - SG No. 92 of 2007, amend. Additional measures in respect of these countries shall be governed by the implementing rules.

 

(4) (new - SG 102/12) The Director of the Financial Intelligence Directorate of the State Agency "National Security" may issue instructions to the persons referred to in Article 3, paragraphs 2 and 3 for the application of extended measures referred to in Article 3, paragraph 2 and 3. 1 to persons from countries outside the list referred to in par. 3.

 

 

 

Art. 7б. (New, SG 102/12) (1) The persons referred to in Article 3(2) and (3) shall be obliged to place under special surveillance all complex or unusually large transactions or operations, as well as all transactions and operations which have no apparent economic or legitimate purpose which can be ascertained in the light of the information available to the person referred to in Article 3(2) and (3), or are not consistent with the information available about the customer.

 

(2) Where transactions or operations referred to in par. (1), the persons referred to in Article 3(2) and (3) shall be obliged to collect information on the essential elements and dimensions of the transaction or transaction, relevant documents and other identifying data.

 

(3) The information collected for the purposes of this Article shall be documented and stored in such a way that it is available to the Financial Intelligence Directorate of the State Agency for National Security, the relevant supervisory authorities and auditors.

 

Section III.

Storage of information

 

 

 

Art. 8. (1) (amend. - SG 1/2001, former text of Art. 8, suppl. - SG 102/12) In the cases referred to in Articles 4 to 7, the persons referred to in Article 3(2) and (3) shall be obliged to keep for a period of 5 years the data on clients and the documents on the transactions and operations carried out, as well as the documents related to the establishment and maintenance of commercial or professional relations. For clients, the period shall run from the beginning of the calendar year following the year of the termination of the relationship, and for transactions and operations, from the beginning of the calendar year following the year of their execution.

 

(2) (new - SG 102/12) Upon written instruction of the Director of the Financial Intelligence Directorate of the State Agency "National Security", the period referred to in par. 1 for storage of the information may be extended up to 7 years.

 

 

 

Art. 9. - SG 1/2001, amend. - SG 31/03, amend. - The data and the documents referred to in Article 8 shall be provided to the Financial Intelligence Directorate of the State Agency "National Security" upon request in the original or in an official certified copy. The procedure, terms and periodicity shall be determined in the Regulations for the implementation of the law.

 

 

 

Section IV.

Disclosure of information

 

 

 

Art. 10. - SG 31/03, amend. - SG 109/07, in force from 01.01.2008)

 

 

 

 

 

Art. 11. (1) (amend. and supplement. - SG 1/01, amend. - SG 31/03, amend. - SG 109/07, in force from 01.01.2008, suppl. - In case of suspicion of money laundering or of the presence of funds of criminal origin, the persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to immediately notify the Financial Intelligence Directorate of the State Agency "National Security" prior to the execution of the operation or transaction by delaying its execution within the time limit allowed under the regulations governing the relevant type of activity.

 

(2) (amend. - SG 1/2001, amend. - SG 31/03, amend. - In cases where the delay of the operation or transaction is objectively impossible, the person referred to in Article 3, paragraphs 2 and 3 shall notify the Financial Intelligence Directorate of the State Agency "National Security" immediately after its performance.

 

(3) (new - SG 1/01, amend. - (2) The notification of the Directorate may also be carried out by employees of the persons referred to in Article 3, paragraphs 2 and 3, who are not responsible for the implementation of the measures against money laundering. The Directorate shall preserve the anonymity of those officials.

 

(4) (new - SG 54/06, amend. - (54) The Financial Intelligence Directorate of the State Agency for National Security shall provide the person referred to in Article 3(2) and (3) and Article 3a with information related to the notification made by him. The decision on the amount of information to be provided back for each specific case of notification shall be taken by the Director of the Directorate.

 

(5) (new, SG 57/2011) The obligation under par. 1 shall also arise in cases where the operation or transaction has not been completed.

 

(6) (new - SG 27/2016) The notification under par. Notification under paragraphs 1 and 2 may also be made by electronic means with a qualified electronic signature or with an access certificate issued by the State Agency for National Security. Upon receipt of the notification, an incoming number and date shall be automatically issued and sent to the sender by electronic message.

 

(7) (new - SG 27/2016) The conditions and procedure for issuing and using the access certificate under paragraph 6, the types of documents and data that may be submitted using a qualified electronic signature or an access certificate, and the procedure for their electronic submission shall be determined by written instructions of the Director of the Financial Intelligence Directorate of the State Agency "National Security". The instructions shall be published on the website of the State Agency for National Security.

 

 

 

Art. 11а. (1) (amend. - SG 109/07, in force from 01.01.2008) The persons referred to in Article 3, paragraphs 2 and 3 shall notify the Financial Intelligence Directorate of the State Agency "National Security" of any cash payment in excess of BGN 30 000 or their equivalent in foreign currency made by or to their client.

 

(2) (amend. - SG 109/07, in force from 01.01.2008) The Financial Intelligence Directorate of the State Agency "National Security" shall keep a register of payments under par. 1. The register may be used only for the purposes of countering money laundering.

 

(3) (amend. - SG 22/09) The procedure and terms for provision, use, storage and destruction of the information referred to in par. 1, as well as its deletion from the register referred to in paragraph 2 shall be determined by the regulations implementing the law.

 

Art. 11б. (New, SG 31/03) (1) (Amended, SG 31/03) - SG 109/07, in force from 01.01.2008, amend. - SG No. 96 of 2011) The Customs Agency shall provide the Financial Intelligence Directorate of the State Agency for National Security with the information on trade credits for exports and imports, on financial leasing between domestic and foreign persons and on the transfer of funds across the country's border, collected under the conditions and in accordance with the procedures of the Foreign Exchange Act.

 

(2) (suppl. - SG 109/07, in force from 01.01.2008) The procedure for providing the information under par. 1 shall be determined jointly by the Chairman of the State Agency "National Security" and the Minister of Finance.

 

 

 

Art. 11c. (new - SG 31/03, amend. - SG 109/07, in force from 01.01.2008)

 

Art. 12. (amend. - SG 1/01) (1) (amend. - 1. - SG 54/06, amend. - SG 109/07, in force from 01.01.2008, amend. - In the cases referred to in Articles 11 and 18, the Director of the Financial Intelligence Directorate of the State Agency "National Security" may suspend by a written order a certain operation or transaction for a period of up to three working days, starting from the day following the day of issuing the order. If no preventive measure, attachment or restraint is imposed by the expiry of that period, the person referred to in Article 3(2) and (3) may carry out the operation or transaction.

 

(2) (Amend. - SG 31/03, amend. - 109 of 2007, in force from 01.01.2008) The Financial Intelligence Directorate of the State Agency "National Security" shall immediately notify the Prosecutor's Office of the suspension of the operation or transaction, providing the necessary information while preserving the anonymity of the person referred to in Article 3, paragraphs 2 and 3, who made the notification under Article 11 or 18.

 

(3) The public prosecutor may impose a preventive measure or make an application to the appropriate court for the imposition of a seizure or restraint. The court must rule on the application not later than 24 hours after it is received.

 

(4) (Suppl. - 31 of 2003, amend. - SG 31/03, amend. - SG 54/06, amend. - SG 109/07, in force from 01.01.2008, amend. - SG 36/08, suppl. - SG No. 36/2008, Art. (7 of 2018) Where the examination and analysis of the information obtained under the conditions and in accordance with the procedure laid down in this Law does not eliminate the suspicion of money laundering, the Financial Intelligence Directorate of the State Agency "National Security" shall disclose such information to the Public Prosecutor's Office, the Commission for Combating Corruption and Confiscation of Illegally Acquired Assets or the relevant security or public order service, preserving the anonymity of the person referred to in Art. 3(2) and (3) and under Article 3a and of its officials who carried out the notification under Article 11 or 18.

 

 

 

Art. 13. (amend. - SG 1/01) (1) (amend. and supplement. - SG 108/06, in force from 01.01.2007, amend. - In case of notification under Article 11 or 18, the Financial Intelligence Directorate of the State Agency "National Security" may request from the persons referred to in Article 3, paragraphs 2 and 3, except the Bulgarian National Bank and credit institutions operating on the territory of the Republic of Bulgaria, information on suspicious operations, transactions or customers. The requested information shall be provided within the time limit set by the Agency.

 

(2) (amend. and supplement. - SG 31/03, amend. - SG 54/06, amend. - SG 108/06, in force from 01.01.2007, amend. - SG 109/07, in force from 01.01.2008, amend. - Upon written notification under Article 11 or 18, the Financial Intelligence Directorate of the State Agency "National Security" may request from the Bulgarian National Bank and credit institutions operating on the territory of the Republic of Bulgaria information on suspicious operations, transactions or customers. The requested information shall be provided within the time limit set by the Directorate.

 

(3) (amend. - SG 31/03, amend. - SG 109/07, in force from 01.01.2008, amend. - SG 102/07 of 2012) The Director of the Financial Intelligence Directorate of the State Agency "National Security" may request from the state and municipal authorities information under the conditions of par. 1, which may not be refused. The requested information shall be provided within the time limit set by him.

 

(4) (amend. - SG 109/07, in force from 01.01.2008) When determining the time limit under par. The Directorate shall take into account the volume and content of the requested information.

 

(5) (amend. - SG 31/03, amend. - For the needs of the analysis the Financial Intelligence Directorate of the State Agency "National Security" shall receive from the Bulgarian National Bank information collected under the Currency Law.

 

(6) (amend. - SG 31/03, amend. - SG 109/07, in force from 01.01.2008)

 

(7) (amend. - SG 109/07, in force from 01.01.2008) The provision of information under par. 1 to 5 may not be refused or restricted on grounds of professional, banking or commercial secrecy.

 

 

 

Art. 14. (1) (amend. and supplement. - 1 of 2001, suppl. - 31 of 2003, former text of Art. 14 - SG 54 of 2006, amend. - The persons referred to in Article 3(2) and (3), the persons who manage and represent them, as well as their employees may not notify their client or third parties of the disclosure of information in the cases referred to in Articles 9, 11, 11a, 13 and 18.

 

(2) (new - SG 54/06) The prohibition to disclose information under par. 1 shall not apply to the relevant supervisory authority referred to in Article 3a.

 

(3) (New, SG 92/07) The prohibition referred to in par. 1 shall not prevent the disclosure of information between persons belonging to the same group which is in a Member State or in a State included in the list referred to in Article 4(1). 9.

 

(4) (New, SG 92/07) The prohibition under par. (1) shall not prevent the disclosure of information between persons referred to in Article 3(2)(11), (18) and (28) from Member States or from countries included in the list referred to in Article 4(2)(1). 9 carrying out their professional activities within the same legal person or group having common ownership, management or control in the application of the law.

 

(5) (new - SG 92/07) The prohibition under par. (1) shall not prevent the disclosure of information between the persons referred to in Article 3(2)(1)-(3), (11), (18) and (28) in cases concerning the same client or the same transaction involving two or more persons, subject to the following conditions:

 

1. the persons are located in a Member State or in a country included in the list referred to in Article 4(1) of Regulation (EU) No .... 9;

 

2. the persons are of the same professional category;

 

3. the persons are subject to obligations of professional, banking or commercial secrecy and of protection of personal data in accordance with Bulgarian legislation;

 

4. the information may only be used to prevent money laundering and terrorist financing.

 

(6) (new, SG 92/07) Where the persons referred to in Article 3(2)(11), (18) and (28) seek to dissuade a client from engaging in illegal activity, this shall not constitute disclosure of information within the meaning of par. 1.

 

(7) (new, SG 92/07) The exceptions under par. 3 to 5 shall not apply and no disclosure of information shall be permitted between the persons referred to in Article 3, paragraphs 2 and 3 and persons from countries included in the list referred to in Article 7a, paragraph 1. 3 and if the persons referred to in Article 3(2) and (3) have not fulfilled their obligations under the Personal Data Protection Act.

 

 

 

Art. 15. (1) (Suppl. - 1 of 2001, suppl. - 31 of 2003, former text of Art. 15 - SG 54 of 2006, amend. - SG 109/07, in force from 01.01.2008, suppl. - SG 102/07 of 2012) The disclosure of information in the cases referred to in Articles 9, 11, 11a, 13, 17 and 18 shall not give rise to liability for breach of other laws or a contract.

 

(2) (new - SG 54/06) Subject to the provisions of par. 1, liability shall not arise in cases where it is established that no offence has been committed and that the operations and transactions were lawful.

 

 

 

Section V.

Protection of information (New, SG No. 1/2001)

 

 

 

Art. 15а. (1) (Amended, supplemented and supplemented, as amended by SG No. 1/2001) - 1. - SG 109/07, in force from 01.01.2008, suppl. - SG 102/07 of 2012) The Financial Intelligence Directorate of the State Agency "National Security" may use the information constituting official, bank or trade secrets, as well as the protected personal information obtained under the conditions and in accordance with the procedure of Articles 9, 11, 11a, 13, 17 and 18, only for the purposes of this Law.

 

(2) (Amend. - 31 of 2003, amend. - SG 109/07, in force from 01.01.2008) Employees of the Financial Intelligence Directorate of the State Agency "National Security" may not disclose, use for personal or related persons' benefit information and facts constituting official, banking or commercial secrets which have become known to them in the performance of their official duties.

 

(3) (amend. and supplement. - 31 of 2003, amend. - SG 109/07, in force from 01.01.2008) Employees of the Directorate shall sign a declaration of secrecy referred to in paragraph 2.

 

(4) (amend. - SG 31/03, amend. - The provision of paragraph 2 shall also apply in cases where the persons referred to are not on duty.

 

Chapter Three.

INTERNAL ORGANISATION AND CONTROL

 

Art. 16. (1) (amend. - 1 of 2001, amend. - SG 31/03, amend. - SG 109/07, in force from 01.01.2008, suppl. - (SG 102/07 of 2012) The persons referred to in Article 3, paragraphs 2 and 3 shall, within 4 months of their registration, adopt internal rules for the control and prevention of money laundering, which shall be approved by the Chairman of the State Agency "National Security" or an official authorised by him.

 

(2) (suppl. - SG 54/06) The internal rules referred to in par. (1) shall establish clear criteria for the identification of suspicious operations or transactions and customers, the procedure for the training of personnel and the use of technical means for the prevention and detection of money laundering, as well as a system of internal control over the implementation of the measures under this Law.

 

(3) (new - SG 1/01, amend. - SG 31/03, amend. - SG 109/07, in force from 01.01.2008, suppl. - The internal rules referred to in par. 1 shall be sent to the Chairman of the State Agency "National Security" for approval within 14 days from their adoption. The transmission may also be made electronically in accordance with the procedure laid down in Article 11(6) and (7).

 

(4) (new - SG 31/03, amend. - The professional organisations and associations of the persons referred to in Article 3, paragraphs 2 and 3, in agreement with the State Agency "National Security", may adopt uniform internal rules for the control and prevention of money laundering, which the members of these organisations and associations may join within the period referred to in paragraph 1. 1 by declaration. The unified internal rules and the declarations shall be sent to the State Agency "National Security" within the period referred to in paragraph 1. 3.

 

 

 

Art. 17. (1) (Suppl. - 1. - SG 31/03, amend. - SG 109/07, in force from 01.01.2008, former text of Art. 17 - SG 36/08, amend. - (SG 81/06, in force from 01.01.2017) Control over the implementation of the Law shall be exercised by the Chairman of the State Agency "National Security".

 

(2) (new - SG 36/08, amend. - SG 81/06, in force from 01.01.2017)

 

(3) (new - SG 93/09, in force as from 25.12.2009) The control bodies of the Financial Intelligence Directorate of the State Agency "National Security" shall carry out on-site inspections of the persons referred to in Article 3, paragraphs 2 and 3 on the implementation of the measures for the prevention of the use of the financial system for money laundering purposes, as well as in case of suspicion of money laundering.

 

(4) (new - SG 93/09, in force from 25.12.2009) Control bodies of the Financial Intelligence Directorate of the State Agency "National Security" shall be the officials of the Directorate designated by the Chairman of the State Agency "National Security".

 

(5) (new - SG 93/09, in force from 25.12.2009) The inspections under par. 1 may be carried out jointly with the bodies which are entrusted by a special law to exercise control over the persons referred to in Article 3, paragraphs 2 and 3.

 

(6) (new - SG 93/09, in force from 25.12.2009) The inspections shall be carried out on the basis of a written order of the Chairman of the State Agency "National Security" or of an official authorised by him, which shall specify the purpose, the period and the place of the inspection, the person inspected, as well as the names and positions of the inspecting persons.

 

(7) (new - SG 93/09, in force from 25.12.2009) The persons referred to in Article 3, paragraphs 2 and 3, the state bodies, the local self-government bodies and their employees shall be obliged to provide assistance to the control bodies of the Financial Intelligence Directorate of the State Agency "National Security" in the performance of their functions.

 

(8) (new - SG 93/09, in force from 25.12.2009) When carrying out on-the-spot inspections, the control bodies under par. 3 shall have the right of free access to the business premises of the persons referred to in Article 3(2) and (3), as well as to request documents and collect information in connection with the performance of the task assigned to them.

 

 

 

Art. 17a. (new - SG 1/01, amend. - SG 109/07, in force from 01.01.2008)

 

 

 

Art. 18. (1) (amend. - SG 54/06, amend. - (54) (SG 109/07, in force from 01.01.2008, former text of Art. 18 - SG 36/08) The Financial Intelligence Directorate of the State Agency "National Security" may receive information on suspicion of money laundering, in addition to the persons referred to in Art. 3 (2) and (3), from state bodies and through international exchange.

 

(2) (new, SG No. 36/2008) The Financial Intelligence Directorate of the State Agency for National Security shall, on its own initiative and upon request, exchange information on cases of suspected money laundering with the relevant international bodies, bodies of the European Union and bodies of other countries on the basis of international treaties and under the conditions of reciprocity.

 

Art. 19. (amend. - SG 54/06) (1) (amend. - SG 81/2016, in force from 01.01.2017) Where a person referred to in Article 3, paragraph 2 fails to fulfil his/her obligations under this Law, the Chairman of the State Agency "National Security" may oblige him/her to undertake specific measures necessary to eliminate the violation.

 

(2) (amend. - SG 81/2016, in force from 01.01.2017) The authority which has issued the permit (licence) for carrying out the activity of a person referred to in Article 3, paragraph 2, may revoke the issued permit (licence) on its own initiative or upon a proposal of the Chairman of the State Agency "National Security" made under the conditions of paragraph 1. 1.

 

 

 

Art. 20. - SG 30/06, in force from 12.07.2006, amend. - The acts referred to in Article 19 may be appealed against in accordance with the Administrative Procedure Code.

 

 

 

Chapter Four.

INTERNATIONAL COOPERATION

 

 

 

Art. 21. - SG 1/01, amend. - SG 1/01, amend. - SG 31/03, amend. - SG 54/06)

 

 

 

Art. 22. (amend. - SG 109/07, in force from 01.01.2008)

 

 

 

Chapter Five.

ADMINISTRATIVE PENALTY PROVISIONS

 

Art. 23. (1) (Supp. - 1 of 2001, suppl. - 31 of 2003, amend. - SG 109/07, in force from 01.01.2008, suppl. - SG No. 93 of 2009, in force as of 25.12.2009) Whoever commits or allows to be committed an offence under Art. 4, 5, 6, 7, 8, 9, 13, 15a or refuses to give assistance under Art. 17, par. 7, or to provide free access to the official premises of the persons referred to in Art. 3, para. 2 and 3, or to provide the requested documents or information referred to in Art. 17, para. 8 shall be punished by a fine of BGN 500 to BGN 10 000, if the act does not constitute a criminal offence.

 

(2) (suppl. - SG 31/03, amend. - SG 54/06) Whoever commits or allows to be committed an offence under Articles 11, 11a and 14 shall be punished by a fine of BGN 5 000 to BGN 20 000, if the act does not constitute a criminal offence.

 

(3) (suppl. - SG 1/01) Whoever commits or allows to be committed an offence under Article 16 shall be punished by a fine of BGN 200 to BGN 2000 if the act does not constitute a criminal offence.

 

(4) (amend. - SG 54/06) Where the offence under par. 1, 2 and 3 is committed by a sole trader or a legal person, a pecuniary sanction of BGN 2 000 to 50 000 shall be imposed.

 

(5) (new - SG 54/06) Whoever commits or allows to be committed a violation of this Law outside the cases referred to in par. 1 to 4 or of a normative act implementing it shall be punished by a fine of BGN 500 to BGN 2 000.

 

(6) (new - SG 54/06) Where the violation under paragraph 5 is committed by a sole trader or a legal person, a pecuniary sanction of BGN 1 000 to BGN 5 000 shall be imposed.

 

 

 

Art. 24. (1) (amend. - 1 of 2001, amend. - 31 of 2003, suppl. - SG 54/06, amend. - SG 109/07, in force from 01.01.2008, amend. - (SG 81/06, in force from 01.01.2017) The acts for establishing the violations shall be drawn up by the officials of the State Agency "National Security", and the penal decrees shall be issued by the Chairman of the State Agency "National Security" or by the officials authorized by him.

 

(2) The drawing up of the acts, the issuing, the appeal and the execution of the punitive decrees shall be carried out in accordance with the Law on Administrative Offences and Penalties.

 

Additional provisions

 

 

 

§ 1. For the purposes of this Act:

 

1. (amend. - SG 54/06) A "commercial or professional relationship" is a relationship which is connected with the business of the institutions and persons liable under this Act and at the time of the establishment of the relationship it is presumed that it will have an element of continuity.

 

2. (amended, SG 54/06) "Regulated financial group" means a financial group which is subject to effective consolidated supervision.

 

3. (amend. - SG 54/06, new - SG 92/07) "Group" means a group of companies which consists of:

 

(a) a parent undertaking and its subsidiaries; the group shall also include companies in which the parent undertaking or its subsidiaries have holdings, or

 

(b) companies which are governed jointly by contract or by memorandum or articles of association; or

 

(c) companies in which more than half of the members of the management or supervisory bodies are the same during the financial year and up to the date of the consolidated financial statements.

 

4. (new - SG 31/03, amend. - SG 109/07, in force from 01.01.2008, amend. - SG No. 93 of 2009, in force as of 25.12.2009, amend. and supplemented by art. - SG 52/06/2013, in force as of 14.06.2013, amend. and supplemented by SG 52/06/2013, in force as of 14.06.2013, amend. and supplemented by SG 52/06/2013, in force as of 14.06.2013, amend. - SG 14/06/2015, amend. - SG, Art. 79 of 2015, in force from 01.11.2015) "Security services" shall mean the State Intelligence Agency, the Military Information Service of the Ministry of Defence and the General Directorate for Combating Organised Crime of the Ministry of the Interior.

 

5. (new - SG 31/03, amend. - SG 82/06, amend. - SG 109/07, in force from 01.01.2008, amend. - SG 69/08, amend. - SG No. 69/2008, Art. 93 of 2009, in force since 25.12.2009, amend. - SG 88/10, in force from 01.01.2011, amend. - SG 48/2011, in force as from 24.06.2011, amend. - SG 44/07/2012, in force from 01.07.2012, amend. - SG No 53/2014, amend. - (1 ) "Public Order Services" shall mean the General Directorates of the National Police, Border Police, Fire Safety and Population Protection, the Regional Directorates of the Ministry of the Interior and the Military Police Service under the Minister of Defence.

 

6. (new - SG 31/03) "Supervisory authority" shall mean a state authority empowered by law or other normative act to exercise general control over the activity of a person referred to in Article 3, paragraphs 2 and 3.

 

7. (new - SG 92/07) "Member State" means a State which is a member of the European Union.

 

8. (new - SG 92/07) "Third country" means a country which is not a Member State within the meaning of point 7.

 

 

 

 

 

§ 1а. (new, SG 92/07) This Act implements the provisions of Directive 2005/60/EC of the European Parliament and of the Council on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing and Commission Directive 2006/70/EC laying down implementing measures for Directive 2005/60/EC of the European Parliament and of the Council as regards the definition of "politically exposed persons" and the technical criteria for simplified customer verification procedures and for exemptions due to financial activity of a random or m

 

 

 

 

 

§ 1б. (new - SG 22/2014, in force from 11.03.2014) This Act provides for measures implementing Commission Regulation (EU) No 389/2013 of 2 May 2013 establishing an EU Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decisions No 280/2004/EC and No 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulations (EU) No 920/2010 and (EU) No 1193/2011.

 

 

 

Transitional and final provisions

 

 

 

§ 2. This Act repeals the Act on measures against money laundering (SG No 48/1996).

 

 

 

§ 3. Within 3 months from the entry into force of the Act, the persons referred to in Article 3, paragraphs 2 and 3 shall be obliged to submit to the Financial Intelligence Agency the available information on money laundering.

 

 

 

§ 4. Within 5 months from the entry into force of the Act, the persons referred to in Article 3, paragraph 2, items 1, 2, 3, 4, 5, 9, 11, 13 and 18 shall be obliged to bring their organisation and activities into compliance with the requirements of this Act and to submit their internal rules referred to in Article 16 to the Minister of Finance.

 

 

 

§ 5. In Article 10 of the Law on Administrative Offences and Penalties (promulgated in Journal of Laws, No. 94 of 1990, No 105 of 1991, No 59 of 1992, No 102 of 1995, Nos 12 and 110 of 1996 and Nos 11, 15 and 59 of 1998), a comma shall be inserted after the word "evaders" and the words "as well as permissible" shall be added.

 

 

 

§ 6. The implementation of the Act shall be entrusted to the Council of Ministers, which shall adopt regulations for its implementation within two months of the entry into force of the Act.

 

-------------------------

 

The Act was adopted by the XXXVIII National Assembly on 9 July 1998 and is sealed with the official seal of the National Assembly.

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON MEASURES AGAINST MONEY LAUNDERING

 

 

 

(PROMULGATED IN JOURNAL OF LAWS NO 1 OF 2001)

 

 

 

§ 24. Throughout the Act, the words "Financial Intelligence Bureau" shall be replaced by "Financial Intelligence Bureau Agency".

 

 

 

Additional provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON MEASURES AGAINST MONEY LAUNDERING

 

 

 

(OFFICIAL JOURNAL OF THE EUROPEAN UNION NO 31 OF 2003)

 

 

 

§ 19. Throughout the Act, the words "Financial Intelligence Bureau Agency" shall be replaced by "Financial Intelligence Agency".

 

 

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON MEASURES AGAINST MONEY LAUNDERING

 

 

 

(OFFICIAL JOURNAL OF THE EUROPEAN UNION NO 31 OF 2003)

 

 

 

§ 20. (1) The persons referred to in Article 3, paragraphs 2 and 3, for whom the obligation to implement measures against money laundering arose before the adoption of this Act, shall bring their internal rules referred to in Article 16 into compliance with the requirements of the Act and shall send them to the Financial Intelligence Agency within 4 months from the entry into force of this Act.

 

(2) Persons referred to in Article 3, paragraphs 2 and 3, for whom the obligation to implement measures against money laundering arises by virtue of this Law, shall adopt and send to the Financial Intelligence Agency internal rules referred to in Article 16 within the period referred to in paragraph (1). 1.

 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

 

 

§ 28. (1) The assets, liabilities, records, and other rights and obligations of the Financial Intelligence Bureau shall be assumed by the Financial Intelligence Agency.

 

(2) Existing employment and service relationships shall not be terminated, and Article 123 of the Labour Code shall apply accordingly.

 

 

 

 

 

§ 29. Paragraph 7 (new Article 11a) shall enter into force on 1 January 2004.

 

 

 

Transitional and final provisions

TO THE INSURANCE CODE

 

 

 

(JOURNAL OF LAWS NO 103/2005, IN FORCE AS FROM 01.01.2006)

 

 

 

§ 28. The Code shall enter into force on 1 January 2006, except for:

 

1. article 45, par. 3, art. 89, art. 99, para. 4, arts. 112-116, 127, 137, 139-149, chapter seventeen, chap. twenty-two, art. 254, para. 256, Art. 258, para. 1(2) and (3), (2), (3) and (5), Article 282(2) and § 13(2)(b), (3), (4)(c) and (5) of the Transitional and Final Provisions, which shall enter into force on the date of entry into force of the Treaty of Accession of the Republic of Bulgaria to the European Union;

 

2. Article 254(2), which shall enter into force on the date of the Decision of the European Commission, once information has been provided on the conclusion of an agreement between the National Bureau of Bulgarian Motor Insurers and the motor insurers' bureaux of the Member States in accordance with Article 2(2) of Directive 72/166/EEC on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and to the imposition of an obligation to insure against such liability

 

3. Article 266, which shall enter into force on 11 June 2012;

 

4. Article 282(4) and Articles 284 to 286, which shall enter into force on the date of the European Commission Decision, once information has been provided on the conclusion of an agreement between the National Bureau of Bulgarian Motor Insurers and the compensation bodies of the Member States in accordance with Article 6(4) and (5) of the European Commission Decision. 3 of Directive 2000/26/EC on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC. Pending the entry into force of the Treaty of Accession of the Republic of Bulgaria to the European Union, the National Bureau of Bulgarian Motor Insurers shall set up the organisation to perform the functions of a compensation body;

 

5. Article 288(2), which shall enter into force on 11 June 2007 and shall apply to all claims for compensation lodged on which the Board of the Guarantee Fund has not ruled by that date; until the date of entry into force of the Treaty of Accession of the Republic of Bulgaria to the European Union, the Guarantee Fund shall pay compensation only where the road traffic accident occurred on the territory of the Republic of Bulgaria; the Guarantee Fund shall set up the organisation to perform the functions of an Information Centre within six months of the entry into force of the code.

 

Transitional and Final Provisions

TO THE TAX AND SOCIAL SECURITY PROCEDURAL CODE

 

 

 

(PROMULGATED, STATE GAZETTE NO. 105/2005, IN FORCE AS OF 01.01.2006)

 

 

 

§ 88. The Code shall enter into force on 1 January 2006, with the exception of Art. 179, par. 3, Art. 183, par. 9, § 10, item 1, letter "e" and item 4, letter "c", § 11, item 1, letter "b" and § 14, item 12 of the Transitional and Final Provisions, which shall enter into force on the day of the promulgation of the Code in the State Gazette.

 

 

 

Transitional and final provisions

TO THE ADMINISTRATIVE PROCEDURE CODE

 

 

 

(PROMULGATED IN JOURNAL OF LAWS NO 30/2006, IN FORCE AS FROM 12.07.2006)

 

 

 

§ 142. The Code shall enter into force three months after its promulgation in the State Gazette, except for:

 

1 and 2, § 51(1), § 53(1), § 61(1), § 66(3), § 76(1-3), § 78, § 79, § 83(1), § 84(1) and (2), § 89(1-4), § 101(1), § 102(1), § 107, § 117(1) and (2), § 125, § 128(1)-(2), § 128(1)-(3), § 78, § 79, § 83(1) 1 and 2, § 132(2) and § 136(1), as well as § 34, § 35(2), § 43(2), § 62(1), § 66(2) and (4), § 97(2) and § 125(1) - concerning the replacement of the word "district" by "administrative" and the replacement of the words "Sofia City Court" by "Administrative Court - City of Sofia", which shall enter into force on 1 March 2007;

 

2. paragraph 120, which shall enter into force on 1 January 2007;

 

3. paragraph 3, which shall enter into force on the day of promulgation of the Code in the Official Gazette.

 

 

 

Final provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON MEASURES AGAINST MONEY LAUNDERING

 

 

 

(JOURNAL OF LAWS OF 2006, NO 54)

 

 

 

§ 29. The provisions of § 8 and 11 shall enter into force three months after the promulgation of the Act in the Official Gazette.

 

 

 

Transitional and Final Provisions

TO THE CREDIT INSTITUTIONS ACT

 

 

 

(JOURNAL OF LAWS NO 59/2006, IN FORCE AS FROM 01.01.2007)

 

 

 

§ 36. The Act shall enter into force on the day of the entry into force of the Treaty of Accession of the Republic of Bulgaria to the European Union, with the exception of § 35, item 2, which shall enter into force on the day of the promulgation of the Act in the State Gazette.

 

 

 

Transitional and Final Provisions

TO THE LAW ON THE STATE BUDGET OF THE REPUBLIC OF BULGARIA FOR 2007

 

 

 

(SG 108/06, in force as from 1 January 2007)

 

 

 

§ 106. The Act shall enter into force on 1 January 2007, except for § 103 and § 104, which shall enter into force on the day of its promulgation in the Official Gazette.

 

 

 

Transitional and Final Provisions

TO THE MARKETS IN FINANCIAL INSTRUMENTS ACT

 

 

 

(JOURNAL OF LAWS NO 52 OF 2007, IN FORCE AS FROM 1 NOVEMBER 2007)

 

 

 

§ 27. (1) This Act shall enter into force on November 1, 2007, with the exception of § 7, items 6, 7, 8, 18, 19, 22 - 24, 26 - 28, 30 - 40, item 44, letter "b", item 47, 48, item 49, letter "a", items 50 - 62, 67, 68, 70, 71, 72, 75, 76, 77, item 83, letters "a" and "d", item 85, letter "a", item 91, 93, 94, item 99(d) and (e), 101(b) and 102, § 8, § 9(4)(a)(5) and (7), § 14(1) and § 19, which shall enter into force three days after the promulgation of the Act in the Official Gazette.

 

(2) Paragraph 7(6), (7) and (8) shall apply until 1 November 2007.

 

 

 

Transitional and final provisions

TO THE LAW ON THE STATE AGENCY "NATIONAL SECURITY"

 

 

 

(JOURNAL OF LAWS NO 109/2007, IN FORCE AS FROM 01.01.2008)

 

 

 

§ 44. The Act shall enter into force on 1 January 2008.

 

 

 

Transitional and Final Provisions

TO THE PAYMENT SERVICES AND PAYMENT SYSTEMS ACT

 

 

 

(PROMULGATED IN JOURNAL OF LAWS NO 23 OF 2009, IN FORCE AS FROM 01.11.2009)

 

 

 

§ 21. The Act shall enter into force on 1 November 2009, with the exception of § 10, which shall enter into force on the day of its promulgation in the Official Gazette.

 

 

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON THE MINISTRY OF THE INTERIOR

 

 

 

(JOURNAL OF LAWS OF 2009 NO 93, IN FORCE AS FROM 24.11.2009)

 

 

 

§ 100. The Act shall enter into force one month after its promulgation in the Official Gazette, except for §§ 1, 2, 21, 36, 39, 41, 44, 45, 49, 50, 51, 53, 55, 56, 57, 59, 62, 63, 64, 65, 70 and 91, which shall enter into force on the day of its promulgation.

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON THE MINISTRY OF THE INTERIOR

 

 

 

(JOURNAL OF LAWS NO 88/2010, IN FORCE AS OF 09.11.2010)

 

 

 

§ 117. The Act shall enter into force on the day of its promulgation in the Official Gazette, with the exception of § 1-23, § 25, § 27-30, § 32-34, § 40, § 41, § 43-55, § 63-89 and § 91-114, which shall enter into force on 1 January 2011.

 

 

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE PAYMENT SERVICES AND PAYMENT SYSTEMS ACT

 

 

 

(JOURNAL OF LAWS NO 101/2010, IN FORCE AS FROM 30.06.2011)

 

 

 

§ 69. The Act shall enter into force on 30 June 2011, with the exception of:

 

1. paragraphs 1 to 16, § 41 to 56 and § 62 and 66, which shall enter into force on 30 April 2011;

 

2. paragraphs 60 and 68, which shall enter into force on 31 December 2010.

 

 

 

Transitional and Final Provisions

TO THE MILITARY POLICE ACT

 

 

 

(OFFICIAL JOURNAL OF THE EUROPEAN UNION NO 48 OF 2011, IN FORCE AS FROM 24.06.2011)

 

 

 

§ 12. The Act shall enter into force on the day of its promulgation in the Official Gazette.

 

 

 

Transitional and Final Provisions

TO THE ACT ON AMENDING AND SUPPLEMENTING THE FOREIGN EXCHANGE ACT

 

 

 

(JOURNAL OF LAWS OF 2011 NO 96)

 

 

 

§ 26. The provisions of § 2 and § 25, item 1 shall enter into force on 1 January 2012.

 

 

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON THE MINISTRY OF THE INTERIOR

 

 

 

(JOURNAL OF LAWS NO 44/2012, IN FORCE AS FROM 01.07.2012)

 

 

 

§ 54. (1) The National Police Directorate General established by this Act shall be the successor to the assets, liabilities, rights and obligations of the Criminal Police Directorate General and the Security Police Directorate General.

 

(2) The Director of the General Directorate of the National Police shall represent the Directorate of the Criminal Police and the General Directorate of the Security Police in pending disputes.

 

 

 

§ 55. Upon the entry into force of this Law, the existing service and employment relations of the civil servants and persons working under the employment relationship in the General Directorate of Criminal Police and the General Directorate of Security Police shall be transformed into service and employment relations of civil servants and persons working under the employment relationship in the General Directorate of National Police, respectively.

 

 

 

§ 56. The by-laws issued before the entry into force of this Law shall apply until the issuance of the relevant new by-laws, insofar as they do not contradict this Law.

 

 

 

§ 57. The seniority acquired under the Civil Servants Act and the Labour Code by the employees referred to in § 64 of the Transitional and Final Provisions of the Act on Amendments and Supplements to the Act on the Ministry of the Interior (State Gazette No. 93 of 2009) shall be counted as employment with the same employer, respectively appointing authority.

 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

 

 

§ 70. The Act shall enter into force on 1 July 2012.

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE HEALTH INSURANCE ACT

 

 

 

(PROMULGATED IN JOURNAL OF LAWS NO 60/2012, IN FORCE AS OF 07.08.2012)

 

 

 

§ 44. The Act shall enter into force on the day of its promulgation in the Official Gazette.

 

 

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON MEASURES AGAINST MONEY LAUNDERING

 

 

 

(PROMULGATED IN JOURNAL OF LAWS NO 102 OF 2012)

 

 

 

§ 11. Within three months from the entry into force of this Act, the Council of Ministers shall bring the regulations for the implementation of the Act into compliance with this Act.

 

 

 

Transitional and Final Provisions

TO THE LAW AMENDING AND SUPPLEMENTING THE LAW ON THE STATE AGENCY "NATIONAL SECURITY"

 

 

 

(JOURNAL OF LAWS NO 52 OF 2013, IN FORCE AS OF 14.06.2013)

 

 

 

§ 27. The Act shall enter into force on the day of its promulgation in the State Gazette.

 

 

 

Transitional and Final Provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE GAMBLING ACT

 

 

 

(JOURNAL OF LAWS OF 2014, NO. 1, IN FORCE AS OF 01.01.2014)

 

 

 

§ 34. The Act shall enter into force on 1 January 2014.

 

 

 

Transitional and Final Provisions

TO THE CLIMATE CHANGE MITIGATION ACT

 

 

 

(JOURNAL OF LAWS NO 22 OF 2014, IN FORCE AS OF 11.03.2014)

 

 

 

§ 20. The Act shall enter into force on the day of its promulgation in the Official Gazette.

 

 

 

Transitional and Final Provisions

TO THE LAW ON THE STATE INTELLIGENCE AGENCY

 

 

 

(PROMULGATED - JOURNAL OF LAWS NO 79 OF 2015, IN FORCE AS OF 01.11.2015)

 

 

 

§ 31. The Act shall enter into force on 1 November 2015, with the exception of Section 17(4) concerning Article 69, which shall enter into force on 1 January 2016.

 

Transitional and final provisions

TO THE ACT AMENDING AND SUPPLEMENTING THE ACT ON THE MINISTRY OF THE INTERIOR

 

 

 

(JOURNAL OF LAWS OF 2016, NO. 81, IN FORCE AS OF 01.01.2017)

 

 

 

§ 102. The Act shall enter into force on 1 January 2017, with the exception of:

 

1. paragraphs 6 - 8, § 12, items 1, 2 and 4, § 13, § 14, § 18 - 20, § 23, § 26 - 31, § 32, items 1 and 4, § 33 - 39, § 41 - 48, § 49 concerning Art. 187, par. 3, first sentence, § 50 - 59, § 61 - 65, § 81 - 85, § 86, items 4 and 5, § 87, item 3, § 90, item 1, § 91, items 2 and 3, § 92, § 93 and § 97 - 101, which shall enter into force on the day of the promulgation of the Act in the Official Gazette;

 

2. subsections 32(2) and (3), § 49 on Art. 187, para. 3, new second sentence, § 69 - 72, § 76 regarding persons under § 70, § 78 regarding employees under § 69 and § 70, § 79 regarding employees under § 69 and § 70, § 91, item 1 and § 94, which shall enter into force on 1 February 2017.

 

 

 

Transitional and final provisions

TO THE CONCESSIONS ACT

 

 

 

(JOURNAL OF LAWS NO 96 OF 2017, IN FORCE AS FROM 02.01.2018)

 

 

 

§ 41. The Law shall enter into force within one month from its promulgation in the State Gazette, except for:

 

1. Article 45, paragraph 5, which shall enter into force within 12 months from the promulgation of the Law in the Official Gazette;

 

2. article 191, paragraphs 2 to 5, articles 192 and 193, which shall enter into force on 31 January 2019.

 

Relevant European legislation

 

 

 

COMMISSION DIRECTIVE 2006/70/EC of 1 August 2006 laying down implementing measures for Directive 2005/60/EC of the European Parliament and of the Council as regards the definition of 'politically exposed persons' and the technical criteria for simplified customer due diligence procedures and for exemptions on grounds of financial activity on a random or very limited basis

 

DIRECTIVE 2005/60/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (Consolidated version)

 

DIRECTIVE 2000/26/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles, and amending and supplementing Council Directives 73/239/EEC and 88/357/EEC

 

on the prevention of the use of the financial system for the purpose of money laundering

 

COUNCIL DIRECTIVE 72/166/EEC of 24 April 1972 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles, and to the enforcement of the obligation to insure against such liability

 

COMMISSION REGULATION (EU) No 389/2013 of 2 May 2013 establishing an EU Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decisions No 280/2004/EC and No 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulations (EU) No 920/2010 and (EU) No 1193/2011

 

COUNCIL FRAMEWORK DECISION 2001/500/JHA of 26 June 2001 concerning money laundering, the identification, tracing, freezing, seizing and confiscation of the proceeds of crime

 

COUNCIL DECISION of 17 October 2000 on the arrangements for cooperation and exchange of information between the financial intelligence units of the Member States

 

on money laundering, tracing, freezing, seizing and confiscation of the proceeds of crime