site.btaMPs Adopt Amendments to Measures against Money Laundering Act

Parliament adopted at first reading a draft law amending and supplementing the Measures against Money Laundering Act.

Part of the amendments propose to include new categories of obliged entities that provide services for the transfer or exchange of virtual assets, services for the storage and management of virtual assets allowing the control of assets, and services related to the public offering of virtual assets, persons who provide access to deposit boxes in public vaults on a professional basis, as well as representatives under Article 22 of the Postal Services Act of licensed postal money transfer operators.

It is envisaged that entry in a public register with the National Revenue Agency shall be a condition for providing exchange services between virtual currencies and recognised currencies without gold backing, providing services for the transfer or exchange of virtual assets, services for the storage and management of virtual assets enabling the exercise of control over assets, and services relating to the public offering of virtual assets, as well as for the carrying on of the business of portfolio providers that offer custodial services.

The changes are required following the adoption of the Fifth Round Evaluation Report on Bulgaria on May 18, 2022 at the 63rd Plenary Meeting of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) of the Council of Europe in Strasbourg, France.

As a result of the adopted report, the most severe monitoring procedure of the MONEYVAL Committee, enhanced monitoring, is applied to Bulgaria. At the same time, the Financial Action Task Force (FATF) Monitoring Procedure, implemented by a group within the FATF, has been launched. In view of the need to take action to address the technical compliance and efficiency weaknesses identified, the Council of Ministers approved an implementation plan for the recommended actions. Among the measures foreseen in the plan are those related to the preparation of proposals to amend and supplement the preventive legislation against money laundering and terrorist financing.

The Members of Parliament agreed that the deadline for proposals between the two readings would be five days.