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 2025. According to that Evaluation, Bulgaria was deemed Compliant for 8 and Largely Compliant for 24 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Bulgaria continues to grapple with significant corruption issues that undermine its governance and legal systems, despite some legislative attempts to strengthen anti-corruption measures. The political elite's commitment to combating organized crime is overshadowed by a persistent state-mafia nexus that hampers effective law enforcement and public trust in institutions, while civil society's role in promoting accountability remains limited.

Bulgaria presents itself as an attractive investment destination characterized by low corporate and income tax rates, alongside government incentives designed to stimulate foreign capital inflow. The economy is projected to grow steadily, with a GDP growth forecast of 2.8 percent for 2024, driven by domestic consumption and public investments, although challenges such as labor shortages and inflationary pressures persist. While the regulatory environment offers generally favorable conditions for foreign investment, concerns remain regarding the rule of law, inconsistent regulatory enforcement, and bureaucratic inefficiencies, which could hinder Bulgaria's long-term economic growth and innovation potential.