A new Anti-Money Laundering (AML) Act was adopted in Bulgaria in March 2018 to transpose the Fourth Anti-Money Laundering Directive into national legislation impacting companies across various industries.
Risk assessment is an obligatory mitigation measure for a wide range of companies in line with the anti-money laundering regulations effective in the country.
KPMG’s Anna Ilieva-Vaklinova, Senior Manager, Advisory, commented:
“The 4th AML Directive and the newly adopted AML Act require appropriate and effective AML mitigating measures and safeguards that are proportionate to risk.
For the obliged entities the requirement for a risk-based approach translates into:
In respect to the provisions for establishing and verifying customers and beneficial owners, the risk-based approach of the AML Act envisages:
The AML Act echoes the requirement of the Fourth AML Directive for a strong emphasis on a risk-based approach aiming at increased efficiency of the AML measures adopted at EU, national and entity level. The AML risk assessment process or an update to it is to be undertaken by a large spectrum of obliged entities. The risk assessment is a key milestone for the development of corporate governance processes, policies and procedures in regards to anti-money laundering and counter-terrorist financing.
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