1. SIMPLIFIED MEASURES FOR CUSTOMER’S IDENTIFICATION
APPLICATION OF
SIMPLIFIED MEASURES FOR CUSTOMER’S IDENTIFICATION

2. The identification and the verification of the identification of:
the natural persons shall be done by producing official identity document and providing a copy of the latter, except for the cases when the data contained therein precisely matches the contents of other documents prepared by the persons under Art. 3, paras. 2 and 3 and stored under the terms of Art. 8 of the LMML .
An official identity document is every document, consisting data on: the names of the natural person, date and place of birth; official personal identification number or or another unique element of identity ascertainment which is contained in a valid official document bearing a photography of the customer; citizenship and state of permanent residence and address (post office box is insufficient).

3. the legal persons shall be done by producing an original or a copy certified by a public notary of an official excerpt of the respective register, showing their actual status, and a certified copy of the founding agreement, or act of establishment. The purpose of the latter is to ascertain the ownership, the management and the control of the customer-legal entity.
At identifying legal entities, data shall be gathered on the business name, the legal and organisational form, the official seat, the address of management and the address for correspondence, the activity pattern or purpose, the term of existing, the managerial and representative bodies, the type and structure of the collective managerial body, the basic place of commercial activity.
Whenever in the official excerpt of the respective register the data under Art. 3, paragraph 2 of the RILMML are not available, their gathering shall be performed through producing other official documents.

4. In connection to Art. 23, paragraph 4 of the Law on the Commercial Register
it should be clarified that in case the client of the obliged person under LMML is Bulgarian trader entered in the Commercial register, who has SIC, then the obliged person has to find out the circumstances for its client from the Commercial Register itself, as well as providing print versions of the declared acts.
In all the other cases, concerning Bulgarian commercial companies that have not been registered in the Commercial Register; various types of non-for-profit legal entities (foundations, political parties, unions, etc.), as well as concerning foreign legal persons, the documents specified in Art. 6, par. 1, item 1 of the LMML must be required.

5. CONDITIONS FOR APPLICATION OF SIMPLIFIED MEASURES
The persons under Art. 3, paras. 2 and 3 of the LMML can apply depending on the potential risk assessment simplified or enhanced measures referred to Art. 3, paragraph. 1 of the LMML under the conditions and the procedure of the RILMML.
The information connected to the customer’s identification shall be used by the persons under Art. 3, paras 2 and 3 of the LMML for an initial assessment of the risk profile of the customer.
Application of simplified measures – only when there is enough collected data that the client fits into the hypothesis for simplified measures.

6. The Bulgarian National Bank, credit institutions under Article 3, paragraph 2, item 1, and persons under Article 3, paragraph (2), items 2, 3 and 4 may refer to a previous identification of the client performed by a credit institution under the following conditions:
the seat of the credit institution which has performed the identification is in the Republic of Bulgaria, in another Member State or in a country from the list under Art. 4 paragraph 9 of the LMML;
2. the information required under Art. 6, paragraphs 1-4 is available to the person which makes a reference to a previous identification performed by the credit institution;
3. upon request, the credit institution which has performed a previous identification is able to provide immediately the person which makes a reference to such identification with certified copies of identification documents.

7. The reference to a previous identification does not relieve the person making such reference from liability for non-compliance with the identification requirements under Art. 6, paragraphs 1-4 of the LMML.

8. Where a bank account of a person under Art
Where a bank account of a person under Art. 3, paragraph 2, items 11 and 28 of the LMML from the Republic of Bulgaria, from another Member State or from a country unlisted under Art. 4, paragraph 9 of the LMML, is used to deposit amounts of a client of the person under Art. 3, paragraph 2, items 11 and 28, the bank shall not perform the identification under Art. 3, paragraph 1 of such client and shall not require a declaration pursuant to Art. 7, under the condition that such identification has been made and the declaration accepted by the notary public or by the person under Art. 3, paragraph 2, item 28 and the information gathered in such identification is available to the bank upon request. The bank shall gather sufficient information so as to verify compliance with the conditions for applying simplified measures.

9. The provision of Art. 4, paragraph 9 of the LMML stipulates that no identification shall be performed and no declaration under Art. 4, paragraph 9 shall be filed when the client is a credit institution from the Republic of Bulgaria, from another Member State or a bank from a third country included in a list endorsed under a joint order issued by the Minister of Finance and the Governor of the Bulgarian National Bank.

10. Iceland, Lichtenstein and Norway.
A list of the following countries of which legislation provides requirements consistent with the requirements under LMML, has been approved with Order № ZMF – 1610 from and № RD– 22/2366 from of the Minister of Finance and the Governor of the Bulgarian National Bank and on the basis of Art. 4, paragraphs 9 and 10 of the LMML:
Countries outside EU, belonging to the European Economic Area:
Iceland, Lichtenstein and Norway.
Countries outside EU, members of the Financial Action Task Force on Money Laundering (FATF):
Argentina, Australia, Brazil, Canada, Hongkong, Japan, Mexico, New Zealand, Russian Federation, Singapore, Switzerland, South African Republic and the USA.

11. The regulation of art. 4, par
The regulation of art. 4, par.17 of LMML stipulates that no identification is carried out and no declaration under Art.4, paragraph 7 is filed, when the client is a state body of the Republic of Bulgaria.
In accordance with Art. 8 of the Constitution of the Republic of Bulgaria the state power shall be divided between a legislative, an executive, and a judicial branch of government. Thus, state bodies are all the bodies of the legislative, executive and judicial power. The Ministry of Interior and the Bulgarian armed forces, including their regional units, are part of the executive power of the country.

12. As far as local government authorities and local administration are concerned, we should note that as a client of a concrete deal with an obliged person under art. 3, par. 2 of the LMML only the municipality can appear as a legal person. The last one, according to Art. 44, paragraph 1, item 15 of the Law on Local Self-government and Local Administration, is represented in front of third parties by the mayor, who is an authority of the executive power at the municipality (Art. 139, par.1 of the Constitution). In that context, the municipality is also a state authority and must not be identified.

13. The text in Art.4, paragraph 18 оf the LMML relieves the persons under Art. 3, paragraph 2 from the obligation for custom's identification, which is an institution, having power functions in accordance with the EU legislation under the following conditions:
1. sufficient information is gathered which does not create any doubt as to the institutions’ identity;
2. the institution follows accountability procedures and its activity is transparent;
3. the institution reports to a Community authority, to an authority of a Member State, or there are verification procedures which ensure control of its activities.

14. The Treaty establishing the European community.
The Regulation refers to the EU institutions in accordance with the Treaty of the European Union and
The Treaty establishing the European community.