Bulgaria Strengthens Anti-Money Laundering Laws with Proposals to Amend Penal and Criminal Procedures Codes

Strategic Insights -

Bulgaria's Council of Ministers has approved amendments to the Penal Code, which will confiscate property acquired through crime and held by third parties acting in bad faith. The proposed changes reflect recommendations from the Council of Europe's MONEYVAL committee, aimed at combating money laundering and terrorism financing. The amendments also affect the Criminal Procedure Code and the National Revenue Agency Act, introducing stricter measures against money laundering and organized crime.

Key Takeaways:

  • The Penal Code amendments will confiscate property acquired through crime and held by third parties acting in bad faith, in favor of the state.
  • The proposed changes implement recommendations from the Fifth Round Mutual Evaluation Report of MONEYVAL.
  • A new chapter in the Criminal Procedure Code will regulate the participation of third parties in criminal proceedings when their property is subject to confiscation.
  • The amendments will allow for extensions of precautionary measures, subject to court decision, with a maximum duration of 18 months for serious crimes and eight months for other cases.
  • Changes to the National Revenue Agency Act will address weaknesses in managing confiscated, forfeited, or abandoned property in favor of the state.
  • Procedural rules for the seizure of crypto-assets as objects or instruments of crime will be established to ensure their preservation during proceedings.
  • Bulgaria's existing maximum period for imposed precautionary measures has been criticized by MONEYVAL for undermining the securing of criminal proceeds in large-scale cases.
  • The draft amendments aim to strengthen Bulgaria's anti-money laundering laws and combat organized crime.

Statistics:

  • 18 months: proposed maximum duration of precautionary measures for serious crimes.
  • 8 months: proposed maximum duration of precautionary measures for other cases.
  • 18 months: maximum extension of precautionary measures by court decision.
  • 18 months: proposed maximum extension of measures for securing fines, confiscation, and forfeiture of property in favor of the state.
  • 8 months: proposed maximum extension of measures for case-related costs.

Sources:

  • Government Information Service
  • Council of Europe's Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)