Updated last 26.03.2021
What are the cross-border transfers and payments?
A cross-border transfer is the transfer of amounts in the national or foreign currency through an executing financial institution, most often a bank, to the benefit of a client of another executing institution, in a different country. A cross-border transfer is also the transfer in a foreign currency between the executing institution of the ordering party and the executing institution of the beneficiary within the country.
When and how it is necessary to announce the transfers and payments towards a foreign country?
- When executing cross-border transfers or payments to a foreign country, amounting to BGN 30 000 or more (or their equivalence in another currency), the ordering party provides the payment service provider with data and documents, evidencing the reason and amount of the transaction, as well as a declaration, pursuant to the templated, attached to Ordinance No. 28 of the Bulgarian National Bank (BNB);
- The documents that need to be submitted to the payment service provider documents are listed in art. 2, para. 2 of Ordinance No. 28 of the BNB, and these depend on the purpose of the ordered transfer or payment;
- When the reason for the transfer or payment does not fall within list of art. 2, para. 2 of Ordinance No. 28 of the BNB, the ordering party must submit another document, evidencing the reason and amount of the transfer or payment.
When a periodic statistical declaration of money transactions to and in a foreign country is required?
- On a quarterly basis to the BNB the following transactions has to be reported on statistical templates:
- payments under financial loans, received from a foreign person (when, as at the moment of declaration, the amount of the loan amounts to at least BGN 500 000);
- the operations and balances in accounts, opened abroad;
- receivables from foreign entities under commercial credits and under another deals and transactions, when they are not financial credits, if the total amount of such receivables is equal to or exceeds BGN 200 000;
- payables to foreign entities under commercial credits and under another deals and transactions, when they are not financial credits or debenture loans, if the total amount of such payables is equal to or exceeds BGN 200 000;
- the operations with foreign person, related to services, remuneration and free-of-charge receipts and payments;
- direct investments abroad, with the exception of investments in real estate properties, which are reported once per annum;
- On an annual basis to the BNB the following transactions are reported with statistical templates:
- payments under financial loans, received from a foreign person (when, at the moment of declaration, the amount of the loan is between BGN 50 000 and BGN 500 000);
- direct investments in real estate properties abroad.
|Important to know
For a list and description of the statistical templates, necessary to be submitted to the BNB as per Ordinance No. 27, please visit the website of the institution.
|For more information
For more information regarding cross-border transfers and payments and the related regulatory framework please refer to Ordinance No. 27 and Ordinance No. 28 on the website of the BNB.