Financial Action Task Force’s MONEYVAL upgrades Bulgaria’s AML/CFT technical compliance ratings and keeps it in enhanced follow-up

The Financial Action Task Force, through the Council of Europe’s MONEYVAL, published Bulgaria’s second enhanced follow-up report, concluding that Bulgaria has made progress in remedying selected technical compliance deficiencies from its mutual evaluation and upgrading five FATF Recommendations, while keeping the country under enhanced follow-up. The re-ratings upgrade Recommendation 6 (targeted financial sanctions related to terrorism and terrorist financing) from Partially Compliant to Compliant, Recommendation 10 (customer due diligence) from Partially Compliant to Largely Compliant, Recommendation 24 (transparency and beneficial ownership of legal persons) from Partially Compliant to Compliant, Recommendation 28 (regulation and supervision of designated non-financial businesses and professions) from Partially Compliant to Largely Compliant, and Recommendation 34 (guidance and feedback) from Partially Compliant to Compliant. The report notes that Bulgaria did not request re-ratings for other Recommendations still rated Partially Compliant in the mutual evaluation. It also highlights remaining gaps underpinning the Largely Compliant ratings, including customer due diligence provisions for legal persons and residual shortcomings in the sanctions framework for DNFBPs. Bulgaria will continue in enhanced follow-up and is expected to report back to MONEYVAL within one year on further progress in strengthening its AML/CFT measures.