Bulgarian National Bank to 'We Continue the Change': Unacceptable Attempt at Political Interference

The Bulgarian National Bank (BNB) on August 20 issued a sharp response to a statement circulated by the political party 'We Continue the Change', which claimed that the BNB is powerless to protect Bulgaria’s banking system from individuals sanctioned under the “Magnitsky Act”.

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

The BNB described this position as an unacceptable attempt to exert political pressure by a parliamentary party – something which, it stressed, runs counter to the law and the institutional order of the country.

Through its leader, the political party is effectively demanding two things of the BNB:

"1. Disclosure of banking secrecy outside the legal framework
Information about the balances and movements on the bank accounts of specific individuals and legal entities is protected as banking secrecy. Any demand for disclosure outside the framework established by law constitutes a gross violation of both the law and the rules safeguarding confidentiality. Members of the Governing Council of the BNB swear an oath before the National Assembly and the President of the Republic of Bulgaria to uphold these rules upon assuming office.

2. Undertaking actions or issuing acts without legal basis
The legal vacuum concerning the consequences of sanctions imposed by third countries remains unresolved by the executive and legislative authorities. Any action or act by the Central Bank in this area, without a statutory basis, would be legally invalid. Previous government acts on the issue have already been annulled by the courts. Attempts to shift this problem onto the BNB, the institution stated, represent political interference and a violation of its independence."

The Bulgarian National Bank emphasised that it strictly adheres to the current legislative framework. Assigning additional responsibilities to the BNB can only be done by law, adopted in line with the European legal framework applicable to the European System of Central Banks.