Bulgaria Country Summary

FATF Status

Bulgaria is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Bulgaria was undertaken in 2024. According to that Evaluation, Bulgaria was deemed Compliant for 5 and Largely Compliant for 22 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Corruption remains a significant challenge in Bulgaria, with public opinion consistently identifying it as a top concern. Although recent legislative efforts aim to strengthen anti-corruption measures, including the revamping of the Anti-Corruption Commission, implementation has been inconsistent, and high-profile prosecutions often appear selective or politically motivated, undermining public trust in the justice system.

Bulgaria is also a hub for various criminal activities, including human trafficking, drug trafficking, and financial crimes, which are exacerbated by the intertwining of organized crime with political and economic structures. Despite some advancements in technology and civil society efforts to combat these issues, the resilience against crime is hampered by a lack of effective law enforcement and a pervasive culture of corruption that infiltrates both public and private sectors.

Bulgaria presents a compelling investment climate characterized by low operational costs, government incentives, and a strategic focus on attracting foreign investment, particularly in sectors like green energy and digitalization. Despite these advantages, the country faces challenges such as labor shortages, low productivity, and concerns regarding the rule of law, which can deter potential investors. As Bulgaria aims for Eurozone accession by 2025, it is also navigating economic reforms and demographic challenges that could impact its long-term growth trajectory, while simultaneously working to enhance its innovation ecosystem and improve regulatory transparency.