Custodial wallet / SaaS in Bulgaria

While MAMLA historically served as the primary domestic AML/CFT law for VASPs in Bulgaria, the current regulatory framework is transitioning to the EU's MiCA regime. The 'Bulgarian MiCA Act' is being introduced as the new governing law, and VASPs/CASPs now face dual compliance obligations under both MiCA and MAMLA-derived AML/CFT rules (such as CDD), though MAMLA no longer solely dictates the requirements and penalties for VASPs.

This act defines "virtual assets" and "virtual asset service providers" and brings them within the scope of obliged entities. It outlines the specific requirements for customer due diligence, reporting, and record-keeping.

Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.

In Bulgaria, the State Agency for National Security (SANS) is the primary AML/CFT regulatory body, overseeing VASPs centrally; the Financial Intelligence Directorate under DANS no longer serves as the sole key entity.

National Revenue Agency (NRA) (Национална агенция за приходите - НАП)

In Bulgaria, the identification and verification of the beneficial owner is required under the AML Act, but if no individual beneficial owner can be identified through ownership or control criteria, the law provides that members of senior management are treated as the beneficial owner for registration purposes, so the process is not absolute but includes a fallback.

Natural Persons: Name, date and place of birth, nationality, permanent address, unique identification number (e.g., national ID card, passport number). Identity must be verified using reliable, independent source documents or data (e.g., valid official identification document).

Legal Entities: Company name, legal form, registration number, registered address, and the names of the individuals authorized to represent the company. Verification involves obtaining extracts from commercial registers or similar official documents.

For legal entities, VASPs must identify the natural person(s) who ultimately own or control the customer, typically defined as holding 25% plus one share or more of the voting rights or exercising control via other means. This information must also be verified.

Evidence fact bg.aml.understanding-the-purpose-and-intended not found (may have been renamed).

Regular scrutiny of transactions undertaken throughout the course of the business relationship to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Keeping customer documents, data, and information up-to-date.

Politically Exposed Persons (PEPs): Customers who hold or have held prominent public functions, their family members, or close associates.

High-Risk Third Countries: Transactions involving customers or beneficial owners from countries identified by the EU or FATF as having strategic AML/CFT deficiencies.

Complex, Unusual, Large Transactions, or Unusual Patterns: Transactions that have no apparent economic or lawful purpose.

Violation Type: Non-compliance with the Measures Against Money Laundering Act (MAMLA), specifically regarding VASP registration, customer due diligence (CDD), ongoing monitoring, suspicious transaction reporting (STR), record-keeping, internal control rules, etc. Outcome: Administrative fines, cessation of non-compliant activities, and potential criminal investigations in severe cases of money laundering.

Outcome: Administrative fines, cessation of non-compliant activities, and potential criminal investigations in severe cases of money laundering.

Legal Basis: EU sanctions are typically imposed through Council Decisions and implemented via Council Regulations. These Regulations are directly applicable in all EU Member States without the need for national transposition.