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Documents required under the Anti-Money Laundering Measures Act
As a real estate agency that mediates in real estate transactions, BULGARIAN PROPERTIES is a person liable under the Anti-Money Laundering Measures Act (Article 4, item 18).
In this regard, before concluding a mediation contract for purchase or sale of property, as well as in for concluding a rental property contract, where the monthly rent amounts to or exceeds EUR 10,000 or the equivalent in another currency, we are obliged to ask you to provide us with the following documents in accordance with the requirements of the AML legislation:
• questionnaire / KYC
• copy of identity document (for physical persons)
• copy of identity document of legal representative(s) and actual owner(s) (for legal entities)
• declaration of origin of funds (under Article 66, paragraph 2 of the AML act)
• declaration for a politically exposed person (under Art. 42, para. 2, item 2)
• declaration for actual owner (for legal entities) (Art. 59, para. 1, item 3)
In case the contract is signed without your personal presence, we may request additional documents for identification purposes.
Do I have to give a copy of my passport and does this not contradict the General Data Protection Regulation (GDPR)?
All persons under Art. 4 of the AML Act (including banks, notaries, real estate agencies and many others) are obliged to identify their clients by checking their official identity documents and taking copies of them (Article 53, paragraph 1).
This is not contrary to other laws and the European GDPR. First, because GDPR does not apply in these cases (see Article 1, paragraph 5 of the AML Act). Furthermore, Article 83, paragraph 2 of the AML Act states that the processing of personal data for the purposes of the prevention of money laundering and terrorist financing is considered a matter of public interest under Regulation (EU) 2016/679 (GDPR) and cannot be limited by the requirements of Art. 12 - 22 and Art. 34 of the same regulation.
But even in this case, we are obliged to ensure the protection of all personal data that you provide us. Article 83, paragraph 1 of the AML Act explicitly states that GDPR apply to the processing of personal data for the purposes of the prevention of money laundering and terrorist financing.
BULGARIAN PROPERTIES processes your personal data in accordance with all requirements of the law. Check our Privacy Policy here
Why are copies of personal documents of the legal representatives of a legal entity needed?
Art. 54, para. 7 of the AML Act reads as follows: With regard to the legal representatives of a client - legal entity or other legal entity, proxies and other natural persons who are subject to identification in connection with the identification of a client - legal entity or other legal entity, Art. 53 of the AML Act applies (see above).
Why do I need to provide data on the actual owners of a legal entity?
Art. 59 of the AML Act requires the identification of any natural person who is the beneficial owner of a client - legal entity.
Art. 61 para. 2 of the AML Act also says: When the persons under Art. 4 take measures for a complex check of the client in accordance with the requirements of this law and the regulations for its application, the legal entities and other legal entities established on the territory of the Republic of Bulgaria, which enter into business relations or perform accidental operation or transaction with or through them, and the natural persons for contact under art. 63, para. 4, item 3 shall be obliged to provide to the persons under art. 4 information about their beneficial owners required by this law.
Why is it necessary for the individual clients, as well as the actual owners of a client legal entity, to fill in a declaration for a politically exposed person (PEPS) (under Art. 42, para. 2, item 2 of the AML Act)?
Art. 36, para 1 AML Act: The persons under art. 4 apply measures for extended complex check in relation to potential clients, existing clients and actual owners of a client - legal entity or other legal entity, who are prominent political figures in the Republic of Bulgaria, in another Member State or in a third country or in international organizations, as well as in relation to potential clients, existing clients and actual owners of a client - legal entity or other legal entity, which are related to such prominent political figures.
In order for us to know whether we need to do an extended complex check of our client, we should receive a declaration to establish whether this client is a politically exposed person (aka PEPS).
Who is a politically exposed person (PEPS)?
Please read the list carefully in order to define whether you fall into the category of a PEPS or a related to a PEPS person.
Art. 36. para. 2 of the AML Act sets the following list:
Politically exposed persons within the meaning of para. 1 are natural persons who perform or have been entrusted with the following important public functions:
1. heads of state, heads of governments, ministers and deputy ministers or assistant ministers;
2. members of parliaments or other legislative bodies;
3. members of constitutional courts, of supreme courts or of other supreme bodies of the judiciary, whose decisions are not subject to subsequent appeal except in exceptional circumstances;
4. members of the National Audit Office;
5. members of management bodies of central banks;
6. ambassadors and heads of diplomatic missions;
7. senior officers of the armed forces;
8. members of administrative, management or supervisory bodies of state enterprises and commercial companies with sole owner - the state;
9. mayors and deputy mayors of municipalities, mayors and deputy mayors of regions and chairmen of municipal councils;
10. members of the governing bodies of political parties;
11. heads and deputy heads of international organizations, members of management or supervisory bodies in international organizations or persons performing an equivalent function in such organizations.
(3) The categories defined in para. 2, items 1 - 7, shall include respectively and as far as applicable positions in the institutions and bodies of the European Union and in international organizations.
(4) The categories defined in para. 2, items 1 - 8, shall not include officials at middle or lower level.
(5) For the purposes of para. 1 for "related persons" are considered:
1. the spouses or the persons who live in de facto cohabitation on a marital basis;
2. the descendants of the first degree and their spouses or the persons with whom the descendants of the first degree live in de facto cohabitation on a marital basis;
3. the ascendants of the first degree and their spouses or the persons with whom the ascendants of the first degree live in de facto cohabitation on a marital basis;
4. the relatives in the collateral line of the second degree and their spouses or the persons with whom the relatives in the collateral line of the second degree live in de facto cohabitation on a marital basis;
5. any natural person who is known to be the actual owner together with a person under para. 2 of a legal entity or other legal entity or is in other close commercial, professional or other business relations with a person under para. 2;
6. any natural person who is the sole owner or actual owner of a legal entity or other legal entity, which is known to have been established in favor of a person under para. 2.
--
We will be glad to answer any questions you may have regarding our obligations under the Anti-Money Laundering Measures Act and the documents required in this regard.
In this regard, before concluding a mediation contract for purchase or sale of property, as well as in for concluding a rental property contract, where the monthly rent amounts to or exceeds EUR 10,000 or the equivalent in another currency, we are obliged to ask you to provide us with the following documents in accordance with the requirements of the AML legislation:
• questionnaire / KYC
• copy of identity document (for physical persons)
• copy of identity document of legal representative(s) and actual owner(s) (for legal entities)
• declaration of origin of funds (under Article 66, paragraph 2 of the AML act)
• declaration for a politically exposed person (under Art. 42, para. 2, item 2)
• declaration for actual owner (for legal entities) (Art. 59, para. 1, item 3)
In case the contract is signed without your personal presence, we may request additional documents for identification purposes.
Do I have to give a copy of my passport and does this not contradict the General Data Protection Regulation (GDPR)?
All persons under Art. 4 of the AML Act (including banks, notaries, real estate agencies and many others) are obliged to identify their clients by checking their official identity documents and taking copies of them (Article 53, paragraph 1).
This is not contrary to other laws and the European GDPR. First, because GDPR does not apply in these cases (see Article 1, paragraph 5 of the AML Act). Furthermore, Article 83, paragraph 2 of the AML Act states that the processing of personal data for the purposes of the prevention of money laundering and terrorist financing is considered a matter of public interest under Regulation (EU) 2016/679 (GDPR) and cannot be limited by the requirements of Art. 12 - 22 and Art. 34 of the same regulation.
But even in this case, we are obliged to ensure the protection of all personal data that you provide us. Article 83, paragraph 1 of the AML Act explicitly states that GDPR apply to the processing of personal data for the purposes of the prevention of money laundering and terrorist financing.
BULGARIAN PROPERTIES processes your personal data in accordance with all requirements of the law. Check our Privacy Policy here
Why are copies of personal documents of the legal representatives of a legal entity needed?
Art. 54, para. 7 of the AML Act reads as follows: With regard to the legal representatives of a client - legal entity or other legal entity, proxies and other natural persons who are subject to identification in connection with the identification of a client - legal entity or other legal entity, Art. 53 of the AML Act applies (see above).
Why do I need to provide data on the actual owners of a legal entity?
Art. 59 of the AML Act requires the identification of any natural person who is the beneficial owner of a client - legal entity.
Art. 61 para. 2 of the AML Act also says: When the persons under Art. 4 take measures for a complex check of the client in accordance with the requirements of this law and the regulations for its application, the legal entities and other legal entities established on the territory of the Republic of Bulgaria, which enter into business relations or perform accidental operation or transaction with or through them, and the natural persons for contact under art. 63, para. 4, item 3 shall be obliged to provide to the persons under art. 4 information about their beneficial owners required by this law.
Why is it necessary for the individual clients, as well as the actual owners of a client legal entity, to fill in a declaration for a politically exposed person (PEPS) (under Art. 42, para. 2, item 2 of the AML Act)?
Art. 36, para 1 AML Act: The persons under art. 4 apply measures for extended complex check in relation to potential clients, existing clients and actual owners of a client - legal entity or other legal entity, who are prominent political figures in the Republic of Bulgaria, in another Member State or in a third country or in international organizations, as well as in relation to potential clients, existing clients and actual owners of a client - legal entity or other legal entity, which are related to such prominent political figures.
In order for us to know whether we need to do an extended complex check of our client, we should receive a declaration to establish whether this client is a politically exposed person (aka PEPS).
Who is a politically exposed person (PEPS)?
Please read the list carefully in order to define whether you fall into the category of a PEPS or a related to a PEPS person.
Art. 36. para. 2 of the AML Act sets the following list:
Politically exposed persons within the meaning of para. 1 are natural persons who perform or have been entrusted with the following important public functions:
1. heads of state, heads of governments, ministers and deputy ministers or assistant ministers;
2. members of parliaments or other legislative bodies;
3. members of constitutional courts, of supreme courts or of other supreme bodies of the judiciary, whose decisions are not subject to subsequent appeal except in exceptional circumstances;
4. members of the National Audit Office;
5. members of management bodies of central banks;
6. ambassadors and heads of diplomatic missions;
7. senior officers of the armed forces;
8. members of administrative, management or supervisory bodies of state enterprises and commercial companies with sole owner - the state;
9. mayors and deputy mayors of municipalities, mayors and deputy mayors of regions and chairmen of municipal councils;
10. members of the governing bodies of political parties;
11. heads and deputy heads of international organizations, members of management or supervisory bodies in international organizations or persons performing an equivalent function in such organizations.
(3) The categories defined in para. 2, items 1 - 7, shall include respectively and as far as applicable positions in the institutions and bodies of the European Union and in international organizations.
(4) The categories defined in para. 2, items 1 - 8, shall not include officials at middle or lower level.
(5) For the purposes of para. 1 for "related persons" are considered:
1. the spouses or the persons who live in de facto cohabitation on a marital basis;
2. the descendants of the first degree and their spouses or the persons with whom the descendants of the first degree live in de facto cohabitation on a marital basis;
3. the ascendants of the first degree and their spouses or the persons with whom the ascendants of the first degree live in de facto cohabitation on a marital basis;
4. the relatives in the collateral line of the second degree and their spouses or the persons with whom the relatives in the collateral line of the second degree live in de facto cohabitation on a marital basis;
5. any natural person who is known to be the actual owner together with a person under para. 2 of a legal entity or other legal entity or is in other close commercial, professional or other business relations with a person under para. 2;
6. any natural person who is the sole owner or actual owner of a legal entity or other legal entity, which is known to have been established in favor of a person under para. 2.
--
We will be glad to answer any questions you may have regarding our obligations under the Anti-Money Laundering Measures Act and the documents required in this regard.
