site.btaParliament Adopts on First Reading New Anti-money Laundering Law

Sofia, October 6 (BTA) - Parliament adopted Friday on first reading a new Measures Against Money Laundering Act, submitted by the Council of Ministers. Of the 175 MPs who voted, 166 were in favour, one was against and eight abstained. The deadline between the two readings has been extended to three weeks.

The law aims to achieve compliance with an EU Directive, related to preventing the use of the financial system for money laundering and terrorism funding purposes.

The new legislation, which will replace the existing one, aims to enhance the prevention of money laundering and terrorism funding, the fight against corruption, more effective risk management, improve the competent national institutions' capacity to analyze and exchange information, reads a report by the Parliamentary Committee on Internal Security and Public Order. Two types of checks are provided for - complex and simple, which will be used based on the risk assessment.

The bill regulates the establishment of an interinstitutional working group by the Council of Ministers, which can draft and update a national risk assessment. Stricter sanctions are introduced for failing to comply with the law, while the controlling functions of the supervising bodies are improved. Significant changes are included in the new proposed mode for establishing the source of finances, which are aimed at improving efficiency, administrative savings and flexibility, based on the type of deal or operation, the client's risk profile, etc. The head of the State Agency for National Security will exercise control over the law's enforcement.

The Bulgarian Socialist Party and the Movement for Rights and Freedoms said they would support the bill on first reading, but will demand serious changes to be made before it is adopted conclusively. According to the Socialists, there are restrictive texts, while MP Valeri Jablianov believes some to be even unconstitutional. According to him, the law is used to introduce various means for restricting civil rights and freedoms.