Bulgaria has established a specialized anti-money laundering (AML) unit within its National Police as the government accelerates efforts to remove the country from the Financial Action Task Force (FATF) grey list. This move aims to restore confidence among investors and international partners. Interior Minister Daniel Mitov announced the approval of the new taskforce, which will coordinate national efforts to combat money laundering and related financial crimes under a broader agreement with FATF.
“This initiative marks a significant step towards Bulgaria’s removal from the FATF grey list,” Mitov stated in discussions with local media. He emphasized that this development “results from collaboration between our national institutions and extensive consultations with our international allies in the United States, the United Kingdom, and the European Union.”
The taskforce will be embedded within the General Directorate of the National Police. It will be headed by Deputy Director Yavor Serafimov, previously in charge of Bulgaria’s main anti-organized crime unit. Serafimov brings experience in handling investigations related to cybercrime, drug and human trafficking, corruption, and economic offenses. Officials believe his expertise will be crucial in addressing complex money-laundering networks.
Minister Mitov explained that the new structure is meant to act as a central coordination hub among law enforcement, financial supervisors, and tax authorities, rather than functioning as a standalone agency. A key partner in this initiative will be the National Revenue Agency (NRA), which has taken over gambling supervision duties since the State Commission on Gambling was dissolved in 2020.
The NRA, now responsible for managing Bulgaria’s national gambling self-exclusion register and overseeing licensing and compliance for gambling operators, is a critical component of the AML taskforce. This collaboration aims to enhance monitoring of high-risk sectors and improve information-sharing on suspicious transactions, particularly those related to gaming, e-commerce, and cross-border payments.
Bulgaria’s inclusion on the FATF grey list in October 2023 highlighted significant deficiencies in its AML and counter-terrorist financing framework. This designation implies that banks and multinational companies need to conduct enhanced due diligence when dealing with Bulgarian entities, thereby increasing compliance costs and occasionally restricting access to financial services.
For gambling operators, this grey-list status can complicate relationships with international payment providers and investment partners. This mirrors situations in other jurisdictions like Gibraltar, which faced increased scrutiny from EU-based banks and had to implement additional checks on transactions from gaming businesses until it was removed from the list in 2024.
To address these issues, Bulgaria has already blocked thousands of unlicensed gambling websites and prohibited payment companies from processing transactions for black-market operators. The new AML taskforce is anticipated to formalize these efforts, providing a mandate to coordinate investigations, prioritize high-risk cases, and ensure evidence meets FATF standards.
This initiative comes as the FATF refines its grey list strategy, focusing on jurisdictions posing the greatest systemic risks to the global financial system. Recent FATF plenaries have seen countries like the United Arab Emirates and Gibraltar removed from enhanced monitoring post-reform, while others remain under review or are newly added.
Bulgarian officials are eager to show that the country is committed to reform rather than being a high-risk outlier. Mitov presented the taskforce as part of broader commitments with FATF and EU partners, highlighting the Interior Ministry’s dedication to ensuring that Bulgaria’s legal framework is effectively implemented in practice, not merely aligned on paper.
While the government has not set a formal timeline for exiting the grey list, officials have suggested that with continued reforms and confirmed effective implementation, removal could be realistic around 2026. This optimism stems from a willingness to reform and a commitment to aligning with international standards, as demonstrated by the new taskforce’s establishment.
In contrast, some critics argue the path to removal from the grey list might be more challenging. They point out that systemic issues, such as entrenched corruption and political instability, could hinder the effective application of reforms. Despite these concerns, the establishment of the new AML unit represents a proactive step, demonstrating Bulgaria’s resolve to improve its financial system’s integrity.
Overall, while challenges remain, Bulgaria’s new AML taskforce is an essential component in its strategy to exit the FATF grey list. By addressing financial crime more effectively and strengthening cooperation with international partners, Bulgaria is setting a course for renewed trust and economic stability in the eyes of the global community.
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