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Varadinov & Co.
Legal Bulletin

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State Gazette, issue 37 /May 7th, 2019
Amendments to the Restoration and Restructuring Act of Credit Institutions and Investment Intermediaries introduce the requirements of Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014, establishing uniform rules and a uniform procedure for the restructuring of credit institutions and certain investment intermediaries under the Single Restructuring Mechanism and the Single Fund for Restructuring and Amendments.
A restructuring body is the BNB whose decisions are taken by its Governing Council. The Financial Supervision Commission is a restructuring body for the entities under Art. 1, para. 1 which are subject to supervision by the Commission and are not credit institutions and entities subject to consolidated supervision by the FSC. The BNB and the FSC under the Single Restructuring Mechanism under Regulation (EU) No 806/2014 shall cooperate with the European Court of Auditors, the European Commission, the Council of the European Union, the European Central Bank, the national restructuring bodies and the national competent authorities . The Restructuring Authority shall exercise control over the performance of the obligations of investment firms and branches of third country investment firms.

State Gazette, issue 41 /May 21st, 2019
Facilitated access and exchange of information as well as additional guarantees for the development and accuracy of the cadastral map and cadastral registers foresee changes to the Cadastre and Land Register Act. The main functions of the cadastral map and the cadastral registers, whose creation and maintenance in a current state are aimed at: 1. document the location, boundaries, the permanent purpose of the territory and the way of permanent use of the real estate; 2. creation and maintenance of the property register; 3. elaboration of development plans; 4. creation and maintenance of specialized maps, registers and information systems, other registers provided for by law, as well as provision of access to the data therein; 5. provision of services for the needs of the state administration, real estate taxation, spatial planning and investment design. Requirements are introduced for ensuring the coordination with the central and territorial authorities of the executive power and with the legal persons under Art. 32, para. 1 in carrying out the activities on the creation of specialized maps and registers.
The cadastral licensors will be obliged to provide public access to the specialized maps, registers and information systems for conducting inquiries and inspections, as well as for obtaining specialized data, which they collect and keep up to date according to the nature of their functions. The access to the data is done electronically via the information point of the Single Information Point. A qualified person is required to undergo a course in maintaining and enhancing his / her professional qualifications every two years after the end of the year in which he / she has acquired the relevant qualification or has passed the course. The courses for maintaining and improving the qualification of cadastral staff are carried out under a program approved by the Agency for Geodesy, Cartography and Cadastre. The courses are held by the universities where students from the professional field “Architecture, Civil Engineering and Geodesy” are trained, by the non-governmental professional organizations in the field of geodesy, cartography and cadastre and by persons with qualification and experience in conducting trainings in the field of cadastre. Employees of cadastre who are traders or persons practicing the liberal profession can assist the geodesy, cartography and cadastre services in the administrative service of users of cadastral information for the territories with approved cadastral map and cadastral registers by providing on paper the documents on Art. 55, para. 2, obtained by remote access to the cadastre information system. For the documents provided, the competent cadastre collectors shall collect the fee specified in the tariff under Art. 8, para. 2. The documents provided to the users of cadastral information by the authorized persons on paper cadastre shall have the strength of an official document.
The costs of correcting incompleteness or errors in the cadastral map and the cadastral registers are at the expense of the owners of the real estate only if the missing or inaccurately reported property data does not exist in the sources under Art. 41 and without fulfilling their obligations under Art. 36 and Art. 38, para. 1 - 3 could not be included in the cadastre. Where in the procedure for the creation of a cadastral map and cadastral registers are found discrepancies, obtained by merging the data under art. 41, para. 1, the boundaries of the objects of the cadastre, which are materialized on site, according to the ownership documents, shall be entered in the cadastral map. When the boundaries of the cadastral sites in the urbanized territories are not materialized on site, they are reflected according to the boundaries captured in the cadastral plan and for the parts with applied regulation - according to the limits of the applied regulation plan.
The buildings, objects of the cadastre do not enter into operation unless they are mapped into the cadastral map and the cadastral registers. Buildings that are not objects of the cadastre but create zones of constraints will not be put into operation if the zones of constraints are not mapped into the cadastral map and the cadastral registers. The Agency for Geodesy, Cartography and Cadastre shall provide access to the information system of the cadastre of the authorities, which bring the sites into operation, for carrying out official verification of their presence in the cadastral map and the cadastral registers. Certificates for identity of immovable property are issued by the municipalities when it is necessary to use the data from the maps and plans under Art. 41, para. 1, item 1, as well as data contained in previous cadastral and regulatory plans.

State Gazette, issue 42 /May 28th, 2019
Strengthening control over anti-money laundering measures provides for changes to the law of the same name. The knowledge, intent or purpose required as an element of those activities may be established on the basis of objective factual circumstances. The restrictive requirements of Art. 17 to the statutory persons denying the execution of an operation or transaction, the establishment of a business relationship, including the opening of an account, in cases where they are not able to carry out a comprehensive check, shall not apply to of persons who professionally engage in legal advice but only if they exercise an activity regulated by the Law of the Bar. Exclusion covers the establishment of a client’s legal position in or in connection with proceedings regulated by a procedural law which is pending, is about to be initiated or concluded, including when providing legal advice on the initiation or the avoidance of such proceedings.
The data for the actual owners of foundations and associations registered under the Non-Profit Legal Entities Act are filed for registration if they are not entered on other grounds in the cases or accounts of the non-profit legal entities in the respective register as natural persons. Where the persons - actual owners of foundations and associations registered under the Non-Profit Legal Entities Act are natural persons other than those listed under sentence one and which fall within the scope of § 2 of the Supplementary Provisions, the data are declared for registration.
The exception to the general obligation to notify and provide information to the Financial Intelligence Directorate of the State Agency for National Security prior to the execution of a suspicious transaction or transaction is also analogical and it is delayed within the allowed time limit in accordance with the normative acts governing the respective type of activity. This requirement will not apply to lawyers, but only to the information they receive from or about one of their clients in the process of establishing their legal position or in protecting or representing that client in or in connection with proceedings, regulated in a procedural law that is pending, is to be initiated or concluded, including in the provision of legal advice on the initiation or avoidance of such proceedings, whether that information was received before, during on or after completion of the proceedings. This exception does not apply when the lawyer participates in money laundering or terrorist financing activities; provides legal advice on a request that aims to launder money or terrorist financing, or knows that the client is seeking legal advice for money laundering or terrorist financing purposes.
The internal rules of the persons responsible for the control and prevention of money laundering and terrorist financing are obligatory for the members of the Bar Associations, the Notary Chamber of the Republic of Bulgaria, the Chamber of Private Enforcement Agents, and the Institute of Certified Public Accountants after their adoption by these organizations. Where, in the exercise of control, it is established that the internal rules do not comply with this Act or an implementing act, are not accepted by the competent authority of the obliged person or the measures provided for therein are not sufficient to achieve the objectives of this Act, of the Financial Intelligence Directorate of the State Agency for National Security gives the liable person obligatory instructions to remove the inconsistencies. The instructions shall be executed within one month of their receipt, which shall be notified to the Directorate.
The acts for establishing the violations are compiled by the controlling bodies of the Financial Intelligence Directorate of the State Agency for National Security or by the designated officials of the Bulgarian National Bank, the Financial Supervision Commission and the State Commission on Gambling. The punitive decrees shall be issued by the Chairman of the State Agency for National Security, respectively by the supervisory body, by its head or by officials authorized by them. In case of initiation of administrative criminal proceedings, the Directorate “Financial Intelligence” of the State Agency for National Security and the respective oversight body shall in due time exchange information about the initiated administrative penal proceedings, the established violations and the imposed sanctions, as well as the imposed supervisory measures, if any. In cross-border cases under para. 3 Directorate “Financial Intelligence” of the State Agency for National Security and the respective oversight body under para. 1 shall cooperate and coordinate with the competent oversight authorities of the Member State concerned. In determining the type and amount of administrative penalties, the administrative sanctioning body shall take into account all relevant circumstances, including where applicable: 1. the severity and duration of the offense; 2. the degree of liability of the natural or legal person; 3. the financial condition of the natural or legal person determined according to the total annual financial turnover of the legal entity or the annual income of the natural person; 4. the amount of the realized profit or loss avoided by the natural or legal person, as far as it can be determined; 5. the amount of the losses suffered by third parties as a result of the breach as far as it can be determined; 6. the degree of assistance that the physical or legal person provides to the administrative punishing body; 7. previous violations of the natural or legal person.