Elina Karpacheva

Dr. Elina Karpacheva is the Chair of the European Compliance Centre based in Sofia, Bulgaria. Elina is also the Content Director of the Bulgarian website, to be launched in autumn 2019. She is attorney at law and researcher. Her specialities and interests are transnational law, corporate governance, corporate social responsibility, risk management and customer due diligence.

Foreign whistleblowing: The impact of US extraterritorial enforcement on anti-corruption laws in Europe

06 March 2023
Knowledge Base

by Elina Karpacheva & Branislav Hock

This brand new paper that was recently published entitled “Foreign whistleblowing: The impact of US extraterritorial enforcement on anti-corruption laws in Europe” investigates the expansion of US law in the area of transnational economic crime by discussing the case of foreign whistleblowers, defined as non-US citizens who help US enforcement authorities to sanction both non-US corporations and US corporations that engage in economic crime. Written by Elina Karpacheva and Branislav Hock, the paper shows that extraterritorial application of US whistleblowing laws is part of a broad trend associated with extraterritorial enforcement of US laws, allowing the USA to become the leader in sanctioning US corporations as well as non-US corporations for economic crime. Continue reading…

Elina Karpacheva

Elina Karpacheva

Chair of the European Compliance Centre based in Sofia, Bulgaria

How to choose an AML / KYC service provider (especially if your business has just started)?

15 September 2020
Knowledge Base

According to Reuters, since 2009, regulators have sanctioned companies operating in the financial sector with more than $ 342 billion for their failures to prevent money laundering and terrorist financing. As such harsh sanctions may easily ruin the business of even a very promising Fintech company, many should consider to hire a KYC/AML provider. They, however, should do so wisely. There are many AML / KYC products on the market worldwide, making money laundering prevention a profitable industry. Choosing the right service provider for your business is a complex and responsible endeavour. The goal of this article is to help companies structure the vendor search process, formulate the right questions for the request for proposal and advise on how to reduce compliance risks when outsourcing AML/CTF processes.

Continue reading…

Elina Karpacheva

Elina Karpacheva

Chair of the European Compliance Centre based in Sofia, Bulgaria

Brexit and its Effect on the UK Sanctions Regime

05 February 2020

by Elina Karpacheva

Countries’ sanctions regimes are always closely related to politics and foreign policy. Hence, international sanctions will be one of the areas where U.K. will exercise its post-Brexit sovereignty to the fullest. The British government has already prepared the grounds for its autonomous sanctions regime by adopting the Sanctions and Anti-money Laundering Act in 2018. Continue reading…

EBA’s Guidance on outsourcing and what it means for financial institutions and FinTech

07 October 2019
Knowledge Base

by Elina Karpacheva

The future is in digitalisation of financial services. Traditional financial institutions are changing under the disruptive technology that stems from the FinTech sector. Banks, lending, payment, e-money companies, and investment firms have embraced new business models and opportunities for growth by partnering with providers of technology-enabled services. Outsourcing of business activities as a strategy proved value maximising for the financial industry. Continue reading…

Elina Karpacheva

Elina Karpacheva

Chair of the European Compliance Centre based in Sofia, Bulgaria

FinTech companies face great challenges

03 September 2019

With the adoption of the 5th AMLD all types of FinTech businesses are already legally obliged to keep up with the high AML/CTF standard designated for traditional financial institutions. The legal uncertainty around virtual asset providers (cryptocurrency exchanges, wallet providers, etc.) is overcome. These players are obliged to implement a sound AML compliance programme. European regulatory development comes much later then the US one. Already in 2013, FinCEN published a Guidance on the Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual currencies. Regulatory scrutiny is rising. The 5th AMLD provides for enhanced cooperation between FIUs and financial supervisors, meaning that transboundary nature of ML/TF cases will not impede enforcement anymore. Designation of European Banking Authority as a common EU-wide supervisory body could allow more standardised law enforcement policy. By contrast with Europe, the US authorities already have solid experience in enforcement actions against FinTech companies. Continue reading…