Scribd Logo
Upload

Welcome to Scribd!

  • 95 views

    Bulgaria AML PDF

    Uploaded by

    Madalina Iftode

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Bulgaria AML PDF

    Uploaded by

    Madalina Iftode
    95 views6 pages

    Original Title

    bulgaria_AML.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    95 views6 pages

    Bulgaria AML PDF

    Uploaded by

    Madalina Iftode

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    Bulgaria - AML KYC ​Regulations

    Document History

    Issue Date Version Comments

    21.10.2019 1.0 -

    Disclaimer​: Neither Shufti Pro nor the authors of this document shall be held responsible, liable or accountable for the contents of
    this document. The responsibility to comply with AML - KYC regulations lies with the Client. Achieving full compliance with legal
    obligations requires a thorough analysis of the specific situation, organizational requirements, and regulatory practices. The
    information provided in this document should be seen as an overview of requirements and measures towards conducting proper
    and satisfactory Identity Verification procedures. This document suggests general measures in line with recommendations,
    resources, or procedures provided by relevant laws and authorities to support identity verification requirements. The mere
    reference to or reliance placed on this document alone does not constitute a warranty of any system nor does it guarantee legal
    compliance. It remains the sole responsibility of the Client to comply with its legal obligations.
    Index

    Introduction 3

    Scope 3

    Definitions 3

    References 4

    Due Diligence Requirements 4

    Identity Verification Requirements 4

    Compliant CDD Methods 4

    Documents Required for Verification 5

    Timing of Verification 5

    Politically Exposed Persons and EDD Measures 6

    Reliance on External Services 6

    Record Retention 6

    Page 2 of 6 Copyright ​©​ 2020 Shufti Pro


    1. Introduction
    The state of Bulgaria introduced its recent ‘Measures Against Money Laundering Act’ or
    ‘MAMLA’ in the state gazette, issue 27, dated 27 March 2018. Implementing Directive (EU)
    2015/849 of the European Parliament and of the Council of 20 May 2015. The new
    legislation stresses for the prevention of the use of the financial system for the purposes of
    money laundering or terrorist financing.

    This new Act transposes the provisions of Directive (EU) 2015/849 of the European
    Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial
    system for the purposes of money laundering or terrorist financing (the “Directive”) and
    repeals the current Measures against Money Laundering Act.

    2. Scope
    The ‘Bulgarian - AML KYC Regulations’ report may be used as a reference to highlight
    information from the Bulgarian ​‘Measures Against Money Laundering Act’-2018 ​or ‘MAMLA’
    and the​ ​ ‘​Law For The Bulgarian Identification Documents’.
    Under the guidelines from Bulgarian National Bank, Financial Supervision Commission, and
    the aforementioned act(s), this document highlights the necessary requirements for AML
    and KYC procedures, in particular, Identity Verification required in Bulgaria. These
    requirements are approximated from relevant information/laws/directives from the
    aforementioned Act.

    3. Definitions

    ● Client​:​ Shufti Pro’s customer is referred to as the Client.

    ● Customer​:​ The client’s customer whose subject to the KYC - AML checks.

    ● End-user​: The client’s customer is referred to as end-user but from Shufti Pro’s
    perspective.

    ● Document Verification​: ​The process of verifying the authenticity of a


    government-issued identity document.

    ● Identity Verification​:​ The process of verifying the identity of the client’s customers.

    ● Proof of Identity​: Any government-issued identity document that can be used to


    identify an individual (natural person).

    ● EDD​: Enhanced Due Diligence (EDD) is a process that executes a greater level of
    scrutiny related to the potential business relationships.

    Page 3 of 6 Copyright ​©​ 2020 Shufti Pro


    ● Third-Party Diligence​: Outsourcing of the due diligence process to an external
    party by the Client who is originally responsible for carrying out due diligence
    activities.

    ● PEP​: Politically Exposed Person (PEP) is a person with a higher risk for potential
    involvement in bribery/corruption.

    ● Due Diligence​: ​Refers to the measures taken to mitigate risk before entering into an
    agreement or carrying out a financial transaction with another party.

    4. References

    ● Measures Against Money Laundering Act or ‘MAMLA-2018


    ● Law For The Bulgarian Identification Documents

    5. Due Diligence Requirements


    5.1. Identity Verification Requirements
    As per the requirements of the Bulgarian regulations, these are the following ID attributes
    required for the purpose of identifying a natural person (Individual) from official documents.
    ● Name;
    ● Date and Place of Birth;
    ● Personal Identification Number/ Unique Identification Number of Client;
    ● Nationality;
    ● Country of permanent residence;
    ● Address.

    5.2. Compliant CDD Methods


    We ​(Shufti Pro) ​may apply one or more of the following measures at the request of the
    Client to perform Identity Verification on its behalf. Where an End-user is an individual, who
    does not present himself to the Client for verification in physical presence.

    5.2.1. Shufti Pro shall perform verification of the ​E​nd-user’s identity on the basis of
    documents that are highlighted in 5.3. These documents provide reasonable
    reliability to the confirmation of the identity in Bulgaria. Shufti Pro shall ensure
    that documents being utilized are photo-based biometric identification
    documents that suffice requirements for Identity Verification.

    5.2.2. For the purpose of verifying the End-user’s identity, Shufti Pro shall also verify
    the documents that are submitted. We utilize our specialized Document

    Page 4 of 6 Copyright ​©​ 2020 Shufti Pro


    Verification service to perform checks on the authenticity of the document.
    This includes checks on security features such as holograms,
    tapered/crumpled edges, doctored elements, form inconsistencies, document
    expiration, MRZ, reflected colors and microprinting.

    5.3. Documents Required for Verification


    The following documents are considered in Bulgaria as Proof of Identity:
    Identity Verification
    ● A valid passport;
    ● A current Bulgarian driver's license;
    ● A National ID Card;
    ● Other Valid Photo ID.
    Address Verification
    The following documents are considered as proof of address:
    ● A current utility bill (such as gas, electricity, telephone or mobile phone bill);
    (issued no more than three months ago that shows the End-user’s address
    and name);
    ● Bank statement (issued no more than three months ago that shows the
    End-user’s address and name);
    ● A document issued by a government department that shows the End-user’s
    address and name.
    ● A social insurance document (that shows the End-user’s address).

    5.4. Timing of Verification


    Identity Verification is not limited to a one-time, one instance process. In fact, it is required
    in multiple instances as per regulations. The application and choice of when to deploy
    Identity Verification procedures depend on your requirements and it’s conveyance to Shufti
    Pro.
    You are to pursue Identity Verification when you onboard a new Customer. If you are
    dealing with transaction data, you should apply Identity Verification as per the monetary
    thresholds defined in Bulgarian regulations. In other instances, Identity Verification
    becomes more important to employ if you face higher risks from your Customers. A high
    risk situation would be any instance where an Individual might represent above normal
    exposure of money laundering related threats to you.

    Page 5 of 6 Copyright ​©​ 2020 Shufti Pro


    6. Politically Exposed Persons and EDD Measures
    As per the Enhanced Due Diligence requirements under ​Bulgarian​’s regulations, you are
    required to determine if your Customer is a Politically Exposed Person, holds a public
    office, or exhibits a higher risk profile. In order to fulfill your obligations, Shufti Pro provides
    you it’s AML ​Screening service. The service screens an individual’s selected ID attributes of
    Name and ​DOB against watchlists of global regulatory authorities, foreign and domestic
    databases, compromised PEPs and sanctioned individuals.
    The service highlights the category of the PEP based on the degree of risks they pose and
    also any immediate family member, or a close associate of the PEP.
    You may utilize such services as per your requirements. This includes before or after
    establishing a relationship with your Customer.

    7. Reliance on External Services


    In the absence of explicit regulations, clients on their discretion, may seek the services of a
    third party for fulfilling AML/KYC obligations. Regardless of reliance on a third party, the
    client will remain liable for maintaining regulatory compliance as well as fulfilling AML and
    KYC obligations.

    8. Record Retention
    As per the Bulgarian Act, you are required to retain data for not less than five (5) years.
    These are a part of your AML and KYC obligations for due diligence. In the case where this
    information is processed, collected and managed by a relevant third-party. You are liable to
    collect all such necessary information(Due Diligence Data) from the third party without
    undue delay.

    Page 6 of 6 Copyright ​©​ 2020 Shufti Pro

    You might also like