On 26 October 2022, over 88 representatives of Bulgarian Obliged Entities as well as representatives of Bulgarian Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) supervisory authorities participated in a Workshop on “Mitigation of money laundering / terrorist financing risks associated with virtual assets and virtual assets service providers” in Sofia, as part of the efforts of the Council of Europe’s Economic Crime and Cooperation Division to support Bulgarian authorities in mitigating Money-Laundering and Terrorist Financing risk.

The event provided participants with additional insights on effective management and mitigation of money laundering and terrorist financing (ML/TF) risks associated with virtual assets service providers (VASPs), including in the context of emerging challenges and threats represented by the potential abuse of virtual assets and crypto currencies. The fruitful exchanges fostered by the presentations of the Council of Europe expert and the Bulgarian authorities allowed participants to discuss, inter alia, negative consequences of de-risking of VASPs, the nature of VASPs and the corresponding global crypto currency regulatory framework as well as on the Bulgarian and international requirements regarding prevention of abuse of virtual assets and VASPs for ML/TF purposes. 

Furthermore, the Council of Europe expert presented the Guidance for obliged entities on effectively managing and mitigating risks associated with VASPs, a document which was drafted in the course of the Project for the purposes of further supporting Bulgarian authorities in undertaking targeted outreach towards obliged entities with a view to the specific risks identified in the NRA. 

The workshop was organised within the framework of the joint SRSP Project on “Enhancing Capabilities of Bulgarian Authorities to Effectively Mitigate Money Laundering and Terrorism Financing Risks” funded by the European Commission Directorate General for Structural Reform Support (DG REFORM) and the Council of Europe and implemented by the Council of Europe.