'We Continue the Change': Bulgarian National Bank Is Powerless to Protect Country’s Banking System from Individuals Sanctioned under the ‘Magnitsky Act’

The Bulgarian National Bank (BNB) is powerless to protect Bulgaria’s banking system from individuals subject to sanctions under the “Magnitsky Act”, justifying its inaction with the “absence of explicit regulatory provisions” in national legislation, according to the political party We Continue the Change (WCC).

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The party said that this became clear from a BNB response to a formal request for information submitted by WCC leader Assen Vassilev, asking how the Central Bank monitors compliance with the restrictive measures imposed on individuals included in the sanctions list of the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), among whom is Delyan Slavchev Peevski. In its communication to the media, WCC attached Vassilev’s letter to the BNB, the Bank’s reply, and a BNB press release dated 11 June 2021.

In his letter to the BNB, Assen Vassilev recalled a press release from 11 June 2021 in which the Central Bank stated that the BNB applies restrictive measures under the Law on Measures against Money Laundering in relation to transactions and operations. According to that statement, all banks in the country with existing accounts and business relations with the named individuals had already taken action, including blocking accounts and cards, imposing attachments, and closing accounts.

In its reply to Vassilev, the BNB explained that the above-mentioned press release referred to the existing legal framework, within which the BNB and banks in Bulgaria take account of the consequences of restrictive measures imposed by third countries. The Bank emphasised the need for a national legislative solution, given the absence of explicit regulatory provisions.

The BNB also pointed out that banks independently make decisions regarding their contractual relationships with clients and assess risks under the Law on Measures against Money Laundering. The Central Bank is not a party to these relationships and has no authority to order the opening or closing of accounts. With respect to information on account balances and operations, the BNB stressed that such data constitutes banking secrecy, accessible only under the procedures set out in the Law on Credit Institutions.

According to WCC, however, the BNB has sufficient powers within its supervisory functions as regulator of the banking sector to issue guidance to banks requiring them to take actions that reduce risks to depositors’ funds. By refusing to exercise these powers, the BNB is effectively allowing individuals such as Delyan Peevski, included in the “Magnitsky” sanctions list for corruption, to carry out any operations in the country, thereby exposing the affected banks to the risk of sanctions and potential insolvency, the party noted.

The political formation also recalled that on 22 May 2025, 'We Continue the Change – Democratic Bulgaria' submitted legislative proposals to ensure that sanctions under the “Magnitsky Act” would also be applied in the country.

Following the evasive response from the BNB, We Continue the Change remains firmly committed to protecting the security of Bulgaria’s banking system. Since the Central Bank refuses to take action, we will refer the matter to the European Central Bank,” the party said.

At the beginning of August, Assen Vassilev announced that he had submitted a letter to the BNB with questions concerning Municipal Bank. In it, he referred to BNB instructions from 2021 stating that Bulgarian banks must not operate with individuals sanctioned under the “Magnitsky Act”. According to data from the Central Election Commission, however, the political party 'MRF - New Beginning' operates with Municipal Bank.