Custodial wallet / SaaS in Bulgaria

Measures Against Money Laundering Act (MAMLA) (Закон за мерките срещу изпирането на пари - ЗМИП).

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, AML/CFT supervision of VASPs is shared among multiple authorities, with the National Revenue Agency (NRA) as the leading registration and enforcement body, the Financial Supervision Commission (FSC) overseeing crypto-asset service providers within its regulatory perimeter, and DANS-FID retaining a role but no longer the sole or primary supervisor.

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

Bulgarian law now mandates continuous identification and verification of beneficial owners, requiring ongoing monitoring and periodic updates beyond a static registration step.

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.

Understanding the Purpose and Intended Nature of the Business Relationship:

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.