REQUIREMENTS
There are strict legal requirements of the minimal content of the Internal rules. Therein the entities shall cover wide aspect of relevant information. The drafting of the Internal rules helps the entities to acknowledge better their AML legal obligations and to individualize and analyse the main risk. In the previous Bulgarian AML Act (in force since 1998 until 2018) such obligation for Internal rules was not included.
The necessity for compliance of the Internal rules with the National Risk Assessment helps the entities to develop deeper understanding of its content and match the rules and conclusions therein to their personal situation.
WHAT THE LAW SAYS
Under Art. 101, para 2 of MAMLA, the Internal rules shall contain:
1) Clear criteria for recognizing suspicious operations or transactions and clients:
2) The procedure for using technical means for prevention and disclosure money laundering and financing of terrorism;
3) An internal control system over the implementation of the obligations, established in this act, the Measures against Financing of Terrorism Act and the instruments on their implementation;
4) Possibility for performing review by internal audit, where the person under Art. 4 has established such, in which the rules, procedures and requirements are to be checked and assessed under this Paragraph;
5) Possibility for performing an independent audit, in which the rules, procedures and requirements under this Para. Are to be assessed, where this is appropriate in view to the size and nature of the economic activity of the person under Art. 4.
6) The internal system under Art. 42;
7) The internal system for risk assessment and defining the risk profile of the clients;
8) Proportional to the size and nature of the economic activity of the person under Art 4. Policies, control mechanisms and procedures for limitation and effective management of the risks of money laundering and financing terrorism, established at the EU level, at national level,
as well as at the level of obliged subject;
9) Rules and organization for implementation of the obligations for clarifying the origin of the funds and the source of the property status;
10) The conditions and procedure for collecting, storing and disclosure of information;
11) Time intervals, during which the maintained data bases and clients’ files are reviewed and updated in implementation of Art. 15 and 16, while observing the established and documented under Art. 98 risk level for the clients and business relations;
12) Distribution of the responsibility for application of the measures against money laundering and financing of terrorism in the branches of the person under Art. 4 and measures, including procedures for risk assessment in relation to branches and subsidiary companies in the conditions of Art. 7, if any;
13) The rules for organization and for operation of the specialized service under Art. 106, as well as the training rules of the employees in the specialized service;
14) The training rules for the remaining employees;
15) The distribution of the responsibility of the representatives and employees of the person under Art. 44, as well as to persons in a similar situation, engaged in his/her activity on other grounds for fulfilling the obligations, set out in this Act in the Act on Measures against Financing of Terrorism and in the instruments for their implementation, as well as contact information with the person under Art. 4 and with its responsible representatives and employees
and persons in a similar position, engaged in its activity on other grounds, for the purposes of this Act, the Act on Measures against Financing Terrorism and their implementing instruments;
16) in proportion to the size and nature of the economic activity of the person under Art. 4 procedure for anonymous and independent submission of internal reports by employees or persons in a similar position, engaged in his activity on other grounds, for violations of this Act, the Act on Measures against the Financing of Terrorism and their implementing instruments, including alerts for existing suspicion for money laundering or terrorist financing;
17) The assessment under Art. 98, Para. 4;
18) Other rules, procedures and requirements according to the peculiarities of the activity of the person under Art. 4.