Dimitrov Ivanov & Partners - Attorneys at law


February 22, 2011

Cash Payment Restriction Act promulgated

The new Cash Payment Restriction Act (CPRA) was promulgated Tuesday in the Bulgarian State Gazette.

The new CPRA introduces a prohibition for cash payments in excess of BGN 15,000 (ca. EUR 7,670) or above an equivalent amount in a foreign currency.

A limited number of transactions are exempt from the restrictions of the CPRA. These include salary payments, occupational currency cash transactions (e.g. the exchange transactions in exchange offices), etc.

The CPRA provides severe fines for violations of its prohibitions - 25% of the relevant cash payment when made by a natural person and 50% of the payment amount when made by a legal person.

The goals the CPRA is meant to pursue are greater transparency and fiscal accountability of commercial transactions and money laundering prevention.

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