On September 5 the Cabinet approved new amendments to the Measures against Money Laundering Act, expanding the list of people obliged to help in the fight against money laundering and the financing of terrorism.

Health insurance companies will also be obliged to implement the provisions of the act, as well as all persons who make deals involving goods costing more than 30 000 leva or the equivalent in foreign currency.

Approval of the amendments means that Bulgarian law has been harmonised with European Union laws on money laundering and the prevention of financing of terrorism.

The draft bill also covers specific cases, in which simplified or strengthened measures should be exercised based on risk assessment. Simplified measures for identification will be used when the client is a Bulgarian state body or institution, which has authority functions in line with an EU Contract, Communities Contracts or secondary Community legislation. An exemption from the identification obligation will be given to banks when the bank account of a notary or of a person who provides legal consultancy is used to deposit the money of a client.

The simplified procedure will not be allowed in the cases of people who are from countries that do not apply international standards for prevention of money laundering.

Lending institutions will have similar obligations when dealing with lending institutions from third countries whose laws do not include requirements corresponding with those in Bulgaria’s anti-money laundering laws.

At the end of August, Agency for Finance Regulation (AFR) director Vassil Kirov said that the number of convictions for money laundering since the beginning of 2007 was double the number compared with the same period of 2006, according to a report by Bulgarian-language daily Monitor.

He said that improved trend would continue.

“At the end of 2006, there were a total of five convictions, and for 2007 we already have 12, that is to say we have made considerable progress,” Kirov said.

He declined to comment on media reports that his agency was checking up on alleged money laundering by the IRA and Russia organised crime groups.

Kirov said that many operations were being carried out in co-operation with other EU member states officials and other countries working with Bulgaria against money laundering. About 60 to 70 per cent of investigations in Bulgaria are being done in co-operation with foreign financial investigation departments.