Bulgaria has approved the creation of a specialised operational task force aimed at strengthening the country’s response to money laundering, as authorities continue efforts to secure removal from the Financial Action Task Force’s grey list. The decision was adopted by the Council of Ministers and announced following a cabinet meeting earlier this week.

Outgoing Interior Minister Daniel Mitov said the move reflects months of coordinated work across institutions and forms part of a broader package of measures designed to address deficiencies identified by international evaluators. Bulgaria was placed under enhanced monitoring by FATF in October 2023, a designation that signals increased money laundering and terrorist financing risks to the global financial system.

Centralised Structure Within the National Police

According to the Bulgarian News Agency, the new task force will operate within the General Directorate of the National Police and will be led by Yavor Sarafimov, currently Deputy Director of the directorate and a former head of the country’s main unit for combating organised crime. In previous roles, Sarafimov oversaw investigations into cybercrime, drug trafficking, human trafficking, corruption, and economic offences.

According to Mitov, the task force is designed to act as a central coordination hub rather than a standalone agency. It will bring together representatives from institutions involved in countering money laundering, including the National Revenue Agency, the Customs Agency, the State Agency for National Security, the prosecution service, and other relevant structures.

“All analysis and all reports received regarding money laundering will be concentrated within this group, which will enable much faster and better-coordinated actions and subsequent investigations,” the outgoing Interior Minister stated.

The National Revenue Agency plays a particularly significant role, as it currently performs the functions of Bulgaria’s gambling regulator following the transfer of oversight responsibilities from the former State Commission on Gambling in 2020. Integrating the agency into the task force is intended to improve information sharing in sectors considered vulnerable to illicit financial flows, including gambling, e-commerce, and cross-border payments.

International Cooperation and FATF Pressure

Mitov said the establishment of the task force followed consultations not only among domestic institutions but also with international partners. These discussions involved authorities from the European Union, the United States, and the United Kingdom, reflecting the external pressure on Bulgaria to demonstrate tangible progress in strengthening enforcement.

“This is one of the steps that Bulgaria is taking towards its delisting from the FATF grey list,” Mitov said. He added that the initiative “is the result not only of joint work between our national institutions, but also of close collaboration and consultations with our international partners in the United States, the United Kingdom, and the European Union.”

Countries on the FATF grey list face increased scrutiny from banks, investors, and multinational companies, which are required to apply enhanced due diligence when dealing with entities in those jurisdictions. This can raise compliance costs, complicate access to financial services, and discourage foreign investment. Regulated gambling and betting operators are among the sectors most affected, as payment providers often apply additional controls or restrictions.

Broader Reform Context and Future Outlook

Bulgaria’s move follows recent examples of jurisdictions exiting enhanced monitoring after implementing extensive reforms. Gibraltar was removed from the grey list in 2024, while the United Arab Emirates was delisted following similar efforts. In both cases, financial institutions had previously been required to apply stricter checks to transactions involving gambling businesses headquartered in those territories.

FATF has also begun adjusting how it applies grey list criteria, narrowing its focus toward jurisdictions classified as least developed under United Nations standards. Bulgaria does not fall into that category, a factor officials believe strengthens the case for removal if reforms are effectively implemented.

Mitov described the task force as part of a new institutional framework for tackling financial crime. “This is a decisive step and a good formula through which the Bulgarian state is establishing a new institutional framework to combat this type of crime,” he said.

The outgoing interior minister also noted that plans had existed to create a similar operational group to counter hybrid threats, but time constraints prevented its establishment before the end of the current government’s mandate. He said authorities would continue to press for such a structure in the future.

The government has not published a formal timetable for exiting the FATF grey list. Officials have indicated, however, that if implementation and enforcement meet international expectations, removal around 2026 remains a realistic objective.