EC opens infringement procedures against Bulgaria on money laundering, fight against fraud

The European Commission said on June 1 that it opened four infringement procedures against Bulgaria. The procedures are in the areas of money laundering, fight against fraud with EU funds, air quality, and maritime safety.

Fight against money laundering

The Commission calls on Bulgaria to correctly implement the European rules against money laundering. European Commission decided to send a letter of formal notice to Bulgaria on the grounds of its incorrect transposition of the 5th Anti-Money Laundering Directive (Directive (EU) 2018/843).

Bulgaria had notified the complete transposition of the Directive. Nevertheless, the Commission has identified several instances of incorrect transposition (non-conformity) of the Directive into national law. These affect, among others, fundamental aspects like the obligation to register, license, or regulate services providers (i.e. under national law, trust and company services providers are neither licensed or subject to registration); the lack of a mechanism to solve discrepancies of information offered by the national beneficial ownership register (the register that indicates who actually owns what); or the proper application of the concepts of ‘establishment' or ‘residence' as regards who are the subjects under the obligation to provide information on beneficial ownership.

Without a satisfactory response from Bulgaria within two months, the Commission may decide to send a reasoned opinion, the statement says.

Fight against fraud

The Commission calls on BULGARIA, POLAND and FINLAND to comply with the rules on the fight against fraud to the Union's financial interests by means of criminal law. The Commission is launching infringement proceedings by sending letters of formal notice for incorrect implementation of EU rules in this area.

European legislation protects the EU budget by aligning definitions, penalties and rules of jurisdiction relating to fraud and other crimes affecting the European financial interests. The Commission states that it has identified several compliance problems in Bulgaria and Poland with regard to the definition of certain offences and related penalties, as well as the liability of legal persons for offences committed for their benefit.

The three countries have two months to take the necessary measures. In the absence of a satisfactory response, the Commission may decide to send reasoned opinion.

Air quality

The European Commission decided to send a reasoned opinion to Bulgaria for failing to remove barriers to access to justice in relation to air quality plans under the Air Quality Directive. When the limit values set by EU legislation are exceeded, the Directive requires Member States to adopt air quality plans and set appropriate measures to keep exceedance periods as short as possible. The Directive and the Aarhus Convention, to which the EU and all the Member States are parties, require that individuals directly concerned and environmental organisations are allowed to require public authorities to establish an air quality plan and to challenge air quality plans and their contents before national courts.

Bulgaria has not ensured that environmental organisations or natural and legal persons are allowed to bring an action before the national courts. Such a possibility ensures that they can challenge the lack of air quality plans or their insufficiency to address air pollution. The Commission sent a letter of formal notice to Bulgaria in May 2020. Furthermore, a final judgment of the national Court in 2021 confirmed the practice of denying access to justice regarding air quality plans. The Commission has therefore decided today to send a reasoned opinion to Bulgaria, which now has two months to respond and take the necessary measures. Otherwise, the Commission may decide to refer the case to the Court of Justice of the European Union.

Maritime transport

Commission calls on BULGARIA to comply with EU rules on marine equipment

The European Commission decided to send a reasoned opinion to Bulgaria for failing to comply with EU rules on marine equipment contained in the Marine Equipment Directive. The Directive includes common safety rules for equipment such as life jackets, sewage cleaning systems or radars on-board EU-flagged ships, also aiming to prevent them from being counterfeit. The Directive creates a market surveillance mechanism giving Member States the responsibility for ensuring that marine equipment does not present a risk to maritime safety, to health or to the environment. Bulgaria is not conducting adequate market surveillance for marine equipment on-board ships falling under its responsibility, the statement reads.

In October 2019, the Commission sent a letter of formal notice to Bulgaria. Since Bulgaria has still not reported any market surveillance activities, the Commission has decided to issue a reasoned opinion. Bulgaria now has two months to respond and take the necessary measures. Otherwise, the Commission may decide to refer the case to the Court of Justice of the European Union, the statement further says.

Source: BTA