site.btaMPs Approve Rules on Cash Entering or Leaving EU on First Reading

The National Assembly approved government-sponsored amendments to the Foreign Exchange Act on first reading Friday. The revisions are aimed to regulate control over cash entering or leaving the EU, including temporary cash detention by customs authorities. The vote was 117-34, with eight abstentions.

Lyudmila Petkova, a directorate chief at the Ministry of Finance, briefed the MPs on the EU regulations which the bill is intended to transpose into national law.

Tsoncho Ganev (Vazrazhdane) described the bill as "shameful". He warned that due to the absence of clear rules, the future law could be used as another instrument of intimidation by allowing the customs authorities to detain cash arbitrarily.

Toshko Yordanov (There Is Such a People) commented that Bulgaria can use its own discretion in adopting the EU requirements, but the government has gone too far and the proposed bill includes none of the things from EU law which the Finance Ministry official read out in the debating chamber.

Rumen Gechev (BSP for Bulgaria) said the bill is a step in the right direction but needs further elaboration. He wondered whether the authorities will choose when to require a declaration for the movement of cash exceeding EUR 10,000. He called for dispelling all doubt that the amendments may harm the interests of Bulgarian individuals and companies.

Iskren Mitev (Continue the Change) suggested that Vazrazhdane should make proposals before the second reading of the bill instead of just criticizing it.

Lyudmila Petkova, the Finance Ministry official, explained that EU law entitles the competent authorities to detain cash temporarily in accordance with an administrative decision under the terms prescribed by national law if the requirement to declare accompanied cash and to disclose unaccompanied cash was not fulfilled, or if there is evidence that the money is linked to criminal activity.

Discussing the fears of arbitrariness, Petkova said it will be impossible to detain cash unfoundedly after a customs check. There are forms which the customs officers are required to fill out for every check. The forms are intended, in part, to share information with the other EU member states to prevent possible fraud and financing of terrorism.

The MPs set a three-day timeframe for proposals before the second reading of the Foreign Exchange Act amendments.