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Bulgaria: Balkan Mafia know a scam when they see one

August 7, 2013

Why waste a good panic?

Renewable energy companies are a front for money laundering, according to a report of the Financial Intelligence Directorate of Bulgaria’s State Agency for National Security (DANS) for 2012.

The report, as cited by Sega daily, draws attention to the return of pyramid/Ponzi schemes, adding that they have become more complicated and refined compared to the fraud schemes to which many Bulgarians fell victim in the 90s.

According to DANS, renewable energy plants are used in money laundering schemes for a number of reasons.

Firstly, the diversification of energy sources is a main priority in Bulgaria and the EU, which presupposes the creation of companies operating in the sphere.

The energy produced by these plants is purchased at preferential prices under preliminary contracts and this type of investment is incentivized, which paves the way for attempts to use the activity of these companies for money laundering, DANS notes.

Secondly, the construction of hi-tech renewable energy parks involves investing large amounts of money and high cash turnovers, thereby offering an easy option for investing large sums of money of unclear origin or for attempts to commit tax crimes.

Sofia News Agency

And thirdly, their inevitable failure provides a wonderful opportunity to dispose of the records.


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