Delchev & Partners

Declaration of Beneficial Owner

Тhe new Measures against Money Laundering Act (“MAMLA”), promulgated in the State Gazette, issue 27, dated 27 March 2018, in force as from 31 March 2018, provides for a requirement for legal entities or other legal formations, established in the Republic of Bulgaria, to declare their beneficial owners with the Commercial Register and Register of Non-Profit Legal Entities, respectively with the Bulstat Register.

This new Act transposes the provisions of Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (the “Directive”) and repeals the current Measures against Money Laundering Act.

I. Obligated Entities. Exceptions.

Legal entities established in Bulgaria are obligated to announce their beneficial owners.

Exempt from the obligation to declare their beneficial owners are only legal entities which are directly owned by natural persons and the data of these persons is visible at the entity’s file with the Commercial Register, e.g. shareholders in a limited liability company (OOD), sole owner of a solely owned limited liability company (EOOD) or a solely owned joint-stock company (EAD).

II. Data subject to declaration

On 08 January 2019 the Regulations on the Implementation of the MAMLA were promulgated. The Regulations approve a template of Declaration under art. 63, para. 4 of the MAMLA (the “Declaration“). In accordance with the template, the following data is subject to declaration:

1.1. Beneficial owners – natural persons

The identification data for beneficial owners – natural persons, include:

a. full name;

b. citizenship;

c. personal identification number (EGN) or date of birth of the persons, who do not have EGN;

d. country of residence, if different from the Republic of Bulgaria or the country under letter “b” above.

1.2. Legal entities or other legal formations, which have direct or indirect control

Besides the data on the beneficial owners – natural persons, companies must also declare the data about the entities which directly or indirectly have any control. Such data include company name, number as per the national register, legal form as per the national legislation, seat and registered address, as well as the identification data of their legal representatives.

 1.3. Contact person on measures against money laundering matters

If a company does not have a director – natural person, permanently residing on the territory of Bulgaria, the company must appoint a person permanently residing in Bulgaria who will be the contact person on the measures against money laundering matters.