Bulgaria’s importance for money laundering schemes stems from its location, relatively well developed financial sector and lax state control, the US Department of State said.

The department presented its annual International Narcotics Control Strategy Report. Part of the report deals with money laundering and financial crime.

Bulgaria is neither a regional nor an offshore strategic financial centre, the report said.

Though significant part of the drug traffic to Western Europe passed through the country, it was unclear if this activity was the main source of income for organised criminal groups in Bulgaria.

Main source of income for criminal groups, also leading to money laundering, is financial crime and human trafficking, the report said. Smuggling also remains a major problem, the report said. Tax fraud is prevalent.

The report also mentions European Commission pre-accession criticism targeting Bulgaria’s fight against organised crime and money laundering. In 2006 the EC said that more decisive measures were needed in these sectors.

Money laundering has been pursued in court cases but almost no convictions resulted from these, the report said.

The US Department of State lacked information on terrorism financing connected to Bulgaria.