Bulgaria’s Interior Ministry gives US information on evasion of Magnitsky Act sanctions

A Bulgarian delegation visiting the United States has given the US Treasury Department’s Office of Foreign Assets Control information on circumvention of Magnitsky Act sanctions by individuals and structures in Bulgaria, Interior Minister Ivan Demerdzhiev said, according to a July 17 report by Nova Televizia.

Demerdzhiev said that details of the conversations cannot be disclosed due to the rules and practice of the US institution.

“We provided information that we considered to be relevant and of interest to the American side regarding the circumvention of sanctions by individuals sanctioned under the Magnitsky Act in Bulgaria,” Demerdzhiev said.

“We agreed that this exchange of information will continue in the future within the framework of the data we have,” he said.

In Bulgaria, several people have been sanctioned for corruption under the Magnitsky Act. Among them are Movement for Rights and Freedoms leader Delyan Peevski and finance minister in a Boiko Borissov GERB government Vladislav Goranov, now an MP.

For years, Peevski has claimed that the Magnitsky sanctions do not apply in Bulgaria.

Demerdzhiev said that the information will also be provided to the US Department of Justice.

“We will also present this information to the Department of Justice. Meetings are forthcoming with the Deputy Attorney General and other representatives of the department,” Demerdzhiev said.

“They will also receive the data we have, and from there they will assess whether there are grounds for action within their competences,” he said.

He said that this was not just about specific flights or individual transactions, but about a broader scheme for managing assets and avoiding the sanctions regime through front persons and companies.

“We are talking about the acquisition or use of property by sanctioned persons through other people. We are checking where the funds come from, how this property is acquired and whether concealing the real owner or user does not constitute a crime,” he said.

“The more we check, the more individuals and companies come to light. We are talking about an impressive number of people and companies that in one way or another help sanctioned individuals evade restrictions by paying their expenses, acquiring property in their name, or concealing the real ownership of assets,” Demerdzhiev said.

He said that some of the data collected could also be of interest to US law enforcement agencies.

“We have information that, in our opinion, can also be considered data on federal crimes. However, this is entirely at the discretion of the American authorities. We provide the information and evidence we have, and they will decide whether there are grounds for an investigation,” he said.

Regarding a report filed against him by the MRF, Demerdzhiev said that he saw no cause for concern.

“These signals are more of a manifestation of powerlessness. It is difficult to have a substantive signal from people who are themselves subject to sanctions, inspections and interest. I understand their discomfort at being placed under the law, but that is exactly where they belong,” he said.

Demerdzhiev said that the investigations are not limited to one specific person , although public attention is often focused on Peevski.

“He is the top of a pyramid and a symbol of corruption practices in Bulgaria, but our interest is far from limited to him,” Demerdzhiev said.

“There are other individuals who are not only sanctioned, but also assist in circumventing the sanctions. Each of them will be the subject of attention and evidence collection,” he said.

Demerdzhiev also criticised the Bulgarian Prosecutor’s Office , expressing hope that it would be more actively involved in the investigations.

“I hope that when enough evidence is accumulated, the Prosecutor’s Office will be actively involved in this process. Bulgarian citizens have long expected the law to be applied equally to everyone and the institutions cannot remain indifferent,” he said.

(Photo of Demerdzhiev: Interior Ministry)