70% law violations among 2.6% verified declarations of beneficial owners of companies

So far, the Registry Agency has carried out 487 inspections for declaring beneficial owners, according to the provisions of the LMML. This is understood by the answer to questions under the APIA sent to the agency. This makes only 2.6% of the declarants . 330 violations were found, representing 68% of the violations checked.

The BRRD search engine detects in the data from the Commercial Register
18 855 declared circumstances
related to beneficial owners and potentially verifiable. Thus, these 487 checks are reduced to a negligible 2.6%.

However, the sanctioned companies are only 10, and the total amount of sanctions imposed under the Measures Against Money Laundering Act is ridiculous. All 10 companies have been sanctioned a total of BGN 5,000, or BGN 500. of violation.

From February 1 to May 31, 2019, the actual owners of companies with foreign participation in Bulgaria had to be declared. About the problems with We have already informed you about the clarification of the ownership of offshore companies in Bulgaria

at the beginning of the year.

Who declared, who didn’t…

Some of our well-known businessmen are listed as beneficial owners in a large number of companies. For example, Kiril Domuschiev, the Bobokov brothers, Ivo Prokopiev, Sasho Donchev, Ognyan Donev and even the US-sanctioned Vasil Bojkov. Others, who have long been known to control large assets through offshore companies, have not recorded such circumstances. Among them are Nikolay Banev, Delyan Peevski, Ivo Kamenov and Marin Mitev (TIM) and Vetko Arabadzhiev.

The practice of declaring obvious strawmen or “straw people” to be owners continues. Apparently, the stakes are such that the real owners prefer to take the risk of paying the huge monetary penalties provided for under the LMML if they are one day revealed.

Indeed, the Penal Code provides for imprisonment for declaring false data in an official document, but after the case of Hristo Bisserov hardly anyone worries that he will fall under prosecutorial fire because of such a trifle. That is why dozens of citizens and residents from countries such as Seychelles, Belize, Jersey, the Isle of Man, Dubai, Sri Lanka and even two from St. Vincent and the Grenadines have borne the heavy responsibility of business owners in our country.

The already famous Georgios Georgiou, who, according to an investigation by Bivol, appeared in dozens of companies credited by First Investment Bank, has already shrunk his activities to only 7 Bulgarian companies, in which, however, he himself is not the owner, but is only a representative of an offshore company. Georgios ceded his property to Pradeep Perera of Sri Lanka.

District heating is a good example of using strawmen to conceal the real owner. TPP-Bobov Dol is owned by a certain Erlin May Rodriguez from Belize. David Fordham of Yorkshire is fluent in Brickell. At the venerable age of 81, he hardly remembers that he owes the Bulgarian treasury over BGN 38 million. His Yorkshire neighbor Elizabeth Clair Ulham owns the thermal power plants in Ruse and Pleven.

What all these Cypriots, British, Belizeans and scandals about the burning of garbage and the huge debts to the treasury of the above heating companies have in common is the “energy consultant” Hristo Kovachki, described in the reports of the US ambassadors as an “energy mobster”. He has declared himself as the actual owner of several companies, the most significant being the Pension Insurance Company “Toplja” and the insurer “OZK Insurance”.

The latter company resorted to the legal services as a legal adviser to Detelina Hancheva – the woman to Prosecutor General Ivan Geshev. This suggests that no one will hold Kovachki accountable for anything, let alone for trifles such as declaring false circumstances (up to 3 years in prison under the Penal Code) and complicating the international situation in the Commercial Register.

From the response of the Registry Agency, we learn that the control activity on the registration of beneficial owners is ineffective and the few discrepancies found lead to ridiculous penalties. It remains to be seen whether things will change after today’s caretaker Prime Minister Stefan Yanev confirmed that the forthcoming change

of the Executive Director of the Registry Agency Gabriela Kozareva.

Questions:

1. How many checks have been carried out by the Registry Agency for declaring beneficial owners under the provisions of the LMML?
2. How many violations have been found – companies that have not declared on time or have not requested registration of beneficial owners at all?
3. How many and what penalties have been imposed for violations of the provisions of the LMML for declaring beneficial owners?

Answers:

1. Number of inspections carried out by the Registry Agency for declaring beneficial owners under the provisions of the LMML:

The total number of inspections carried out by the Registry Agency for declaring beneficial owners, according to the provisions of the LMML, is currently 487.

1. Number of established violations – companies that have not declared on time or have not requested registration of beneficial owners:

The total number of established violations, for which Administrative Infringement Acts (AWAN) have been drawn up, is currently 330.

1. How many and what penalties have been imposed for violations of the provisions of the LMML for declaring beneficial owners?

For cases where it has been established that an administrative violation has been committed under the LMML, at present 10 Penal Decrees (NP) have been drawn up, with the total penalties imposed amounting to BGN 5,000. (5,000 leva).

***

За да научавате преди всички за нови разследвания, инсталирайте си нашето мобилно приложение:

Щом сте стигнали дотук, вероятно вече си задавате въпроса как се финансира този журналистически проект.

От създаването си BIRD се финансираше от подаяния в нашето журналистическо чекмедже.
Но на чекмеджето му мина времето. Даже прокуратурата затвори онова Чекмедже, знаете кое…
Нашето финансиране влиза в крак с епохата. Фондонабиращата ни кампания вече се казва

#МятайСБЪРД

Дарявай за BIRD и мятай павета в блатото с корумпирани политици и други тарикати.
Те тайно премятат пари от твоя джоб в своя. Те размятат безнаказано лукса си пред очите на всички. Няма кой да ги накаже ако се надяваш на държавата.
Мятай, за да ги накажеш ти. Да дариш за разследващите журналисти е гаранция, че гадостите, с които силните на деня те замерят, ще им се върнат.
Можеш да метнеш веднъж, за да ти олекне!
Но по-добре е да мяташ редовно всеки месец и да се чувстваш трайно удовлетворен.
А най-добре е да доведеш приятели и да мятаме редовно заедно в екип. С мощен залп!
*За кръстник на новата ни фондонабираща кампания избрахме другарката Ваня. Благодарим й за вдъхновението!