Categories of Obliged Persons

Measures for prevention and disclosure of money laundering acts are defined under Article 3, paragraph 1 of the Law on Measures Against Money Laundering (LMML) and include monitoring, collection of information, identification and verification of clients and beneficial owners, financial, commercial and professional relations, risk profiles, suspicious transactions and deals.

The measures are executed by the obliged persons under Art. 4, paragraph 2 of the LMM, correspondingly under the LMFTL:

1. the Bulgarian National Bank and the credit institutions which pursue business within the territory of the Republic of Bulgaria within the meaning given by the Credit Institutions Act;

2. the other payment service providers within the meaning given by the Payment Services and Payment Systems Act and the representatives thereof;

3. the financial institutions within the meaning given by the Credit Institutions Act;

4. the currency exchange offices;

5. insurers, reinsurers and insurance intermediaries with a registered office in the Republic of Bulgaria, which have obtained a licence under the terms and according to the procedure established by the Insurance Code, where carrying on one or more of the classes of insurance referred to in Section I of Annex No. 1 to the Insurance Code; insurers, reinsurers and insurance intermediaries which have obtained a licence in another Member State, or another State which is a Contracting Party to the Agreement on the European Economic Area, which pursue business within the territory of the Republic of Bulgaria, where carrying on one or more of the classes of insurance referred to in Section I of Annex No. 1 to the Insurance Code; insurers and reinsurers with a registered office in States other than a Member State, or a State which is a Contracting Party to the Agreement on the European Economic Area, which have obtained a licence from the Financial Supervision Commission to pursue business in the Republic of Bulgaria through a branch, where carrying on one or more of the classes of insurance referred to in Section I of Annex No. 1 to the Insurance Code;

6. the leasing undertakings;

7. the postal operators licensed to handle postal money orders under the Postal Services Act;

8. (supplemented, SG No. 42/2019, effective 28.05.2019) the investment intermediaries licensed under the terms and according to the procedure established by the Markets in Financial Instruments Act;

9. (supplemented, SG No. 42/2019, effective 28.05.2019) the collective investment schemes and the other undertakings for collective investments licensed under the terms and according to the procedure established by the Collective Investment Schemes and Other Undertakings for Collective Investments Act;

10. (supplemented, SG No. 42/2019, effective 28.05.2019) the management companies and the persons managing alternative investment funds licensed under the terms and according to the procedure established by the Collective Investment Schemes and Other Undertakings for Collective Investments Act;

11. (supplemented, SG No. 42/2019, effective 28.05.2019) the retirement insurance companies licensed under the terms and according to the procedure established by the Social Insurance Code, with the exception of the business thereof of managing supplementary retirement insurance funds;

12. the statutory auditors;

13. (amended, SG No. 94/2019) persons that, by way of their business, provide accounting services and/or tax consultancy services, as well as persons that, as their principal business or professional activity, provide, directly or indirectly through related persons, assistance in any form or advice on tax matters;

14. the notaries and the assistant notaries acting in a substitute capacity;

15. persons that, by way of their business, provide legal advice where:

(a) assisting or participating in the planning or carrying out of an operation, transaction or other legal or factual action of a client thereof concerning the:

(aa) buying and selling of immovable property or transferring the enterprise of a merchant

(bb) managing of money, financial instruments or other assets;

(cc) opening, managing or disposing of a bank account, savings account or financial instruments account;

(dd) raising of contributions necessary for the creation of a legal person or other legal entity, increasing the capital of a commercial corporation, extending a loan or any other form of procuring funds necessary for the carrying out of the activity of a legal person or other legal entity;

(ee) formation, registration, organisation of the operation or management of a trust, merchant or another legal person, or other legal entity;

(ff) fiduciary management of assets, including trusts, escrow funds and other similar foreign legal entities incorporated and existing under the law of the jurisdictions providing for such forms of trusts;

(b) acting for the account and/or on behalf of a client thereof in any financial operation whatsoever;

(c) acting for the account and/or on behalf of a client thereof in any real estate transaction whatsoever;

(d) providing a registered office, correspondence address, business accommodation and/or other related services for the purposes of the registration and/or operation of a legal person or other legal entity;

16. persons that, by way of their business, provide:

(a) a registered office, correspondence address, business accommodation and/or other related services for the purposes of the registration and/or operation of a legal person or other legal entity;

(b) services comprising the formation, registration, organisation of the operation and/or management of a merchant or of another legal person, or other legal entity;

(c) services comprising the fiduciary management of assets or of a person referred to in Littera (b), including:

(aa) acting as, or arranging for another person to act as, a director, a secretary, a partner or a similar position in a legal person or other legal entity;

(bb) acting as, or arranging for another person to act as, a trustee, in cases of trusts, escrow funds and other similar foreign legal entities incorporated and existing under the law of the jurisdictions providing for such forms of trusts;

(cc) acting as, or arranging for another person to act as, a nominee shareholder in a third-party foreign legal person or legal entity other than a company listed on a regulated market that is subject to disclosure requirements in accordance with European Union law or subject to equivalent international standards;

17. the private enforcement agents and assistant private enforcement agents;

18. (amended, SG No. 94/2019) persons providing by occupation intermediation in real estate transactions, including with respect to real estate leasing transactions where the monthly rent amounts to or exceeds EUR 10 000 or their equivalent in another currency;

19. the wholesalers;

20. the traders in arms, oil and petroleum products;

21. (supplemented, SG No. 42/2019, effective 28.05.2019) the organisers of games of chance within the meaning given by the Gambling Act, licensed by the State Commission on Gambling to organise the games of chance for which they are authorised according to the procedure established by Article 3 of the same Act within the territory of the Republic of Bulgaria;

22. the privatisation authorities;

23. the persons organising public procurement awards;

24. ministers and municipality mayors upon the conclusion of concession contracts;

25. the legal persons wherewith there are mutual lending funds;

26. the persons offering a loan of money against the deposit of an item of property as security;

27. the trade unions and the professional organisations;

28. the non-profit legal persons;

29. the professional sports clubs;

30. (supplemented, SG No. 42/2019, effective 28.05.2019) market operators and/or regulated markets licensed under the terms and according to the procedure established by the Markets in Financial Instruments Act;

31. (amended, SG No. 42/2019, effective 28.05.2019) the central securities depositories licensed by the Financial Supervision Commission under the terms and according to the procedure established by Regulation (EU) No. 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No. 236/2012 (OJ L 257/1 of 28 August 2014);

32. the political parties;

33. the authorities of the National Revenue Agency;

34. the customs authorities;

35. the Executive Director of the Executive Environment Agency in the capacity thereof as national administrator within the meaning given by Commission Regulation (EU) No. 389/2013 of 2 May 2013 establishing a Union registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council, Decisions No 280/2004/EC and No 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulations (EU) No. 920/2010 and No 1193/2011 (OJ, L 122/1 of 3 May 2013);

36. (new, SG No. 94/2019) persons that, by occupation, trade or act as intermediaries in the trade in works of art, including when such trade is carried out by art galleries and auction houses, where the value of the transaction or related transactions is equal to or exceeds EUR 10 000 or their equivalent in another currency;

37. (new, SG No. 94/2019) persons that, by occupation, store, trade or act as intermediaries in the trade in works of art when such trade is carried out in free zones and where the value of the transaction or related transactions is equal to or exceeds EUR 10 000 or their equivalent in another currency;

38. (new, SG No. 94/2019) persons that, by occupation, provide exchange services between virtual currencies and recognised currencies that are not backed by gold;

39. (new, SG No. 94/2019) portfolio providers offering custody services.