EN ECB -PUBLIC  
OPINION OF THE EUROPEAN CENTRAL BANK  
Of 22 December 2014  
on disclosure of information  if a bank is subject to resolution or licen ce revocation  
(CON/2014/ 90) 
 
Introduction and legal basis  
On 20 November 2014,  the European Central Bank (ECB) received a request from Българска народна 
банка ( Bulgarian National Bank ) (BNB) for an opinion on a draft law amending and supplementing the 
Law on credit institutions  (hereinafter the ‘draft law’).  
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5)  of the Treaty on the 
Functioning of the European Union and the third  and sixth indents of Article  2(1) of Council Decision 
98/415/EC1, as the draft law relates to BNB and to rules applicable to financial institutions insofar as they 
materially influence t he stability of financial institutions and markets . In accordance with the first sentence 
of Article  17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has 
adopted this opinion.  
 
1.  Purpose of the draft law  
1.1 The draft law is aimed at increasing transparency and public awareness in the event that a bank is 
subject to resolution measures or has had its  banking licence revoked.  
1.2 Under the draft law , BNB may instruct the conservators of a bank placed under special supervis ion 
to enter into an agreement with a company that has experience in tracking monetary transfers and 
receivables, as well as transactions with financial instruments2. In addition, the assignee in 
bankruptcy  is required to enter into such an agreement3. 
1.3 The draft law introduces a special regime requiring public  disclosure of the identity of certain 
individuals hold ing deposits and loans in banks subject to resolution measures and those having 
their licence revoked. This  requirement applies  to individuals  under an obligation  to disclose their 
property, income and expenses in the country and abroad in accordance with the Law on the 
disclosure of property belonging to individuals occupying high- ranking state and other offices4.  
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions ( OJ L 189, 3.7.1998, p. 42) . 
2   See paragraph 2 of the draft law amending  Article 103(3) of  the Law on credit institutions . 
3   See paragraph 6 of the draft law amending  Article 33(5) of the L aw on bank insolvency . 
4  See Arti cle 2.  
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2 1.4 Under t he draft law , prior to any  deposits  being paid out to a company registered in a jurisdiction 
with a preferential tax regime5, the company must  disclose the identity of its beneficial  owners  to 
the bank in question. In addition, i f a company registered in a jurisdiction with a preferential tax 
regime has a loan that has not been serviced or is overdue, and this loan is from a bank subject to  
resolution measures  or a bank having its licence revoked, the company is required to disclose the 
identity of its beneficial owners  to the bank in question. The bank must  publish the names of the 
beneficial  owners of the companies  in two central daily newspapers . 
1.5 Furthermore,  the individuals that  manage and represent a bank subject to resolution measures  or a 
bank having its license re voked must  publish the names of all natural and legal persons whose 
bank  loans  have  not been serviced or are overdue in two central daily newspapers6. 
 
2. General observations  
2.1 The ECB welcomes the introduction of measures that assist in  the retrieval of assets and enhanc e 
collection efforts  in bank resolution.  
2.2 On the proposed public disclosure of confidential information to promote transparency in bank 
resolution, t he ECB notes  that public disclosure by banks of confidential information is subject to 
specific disclosure obligations, exceptions and prohibitions established in Union law as well as 
national law7. In this vein, t he envisaged publication of the names of bank customers , i.e. all natural 
and legal persons whose loans have not been serviced or are overdue from banks in resolution  
(or where the bank’s licence has been revoked)8 needs to be balanced with privacy issues and 
adhere to due process . Safeguards regarding the publication of customer information should be 
introduced, including, for example, an assessment of whether the disclosure is proportionate and of 
systemic importance9. 
 
3. Specific observations  
3.1 Tracking monetary transfers and receivables as well as transactions with financial instruments  
3.1.1 Providing for  a competence of B NB10 to enter into a service contract  with specialised third parties 
having experience in tracking money transfers adds a specific power to the existing toolkit under 
the Law on credit institutions. The ECB understands that BNB is already authori sed under t he Law 
on credit institutions to issue binding instructions  to the conservators in relation to their activity , 
                                                 
5  The jurisdictions with a preferential tax regime are specified in paragraph 1, point 64 of the Additional Provisions of the Law 
on Corporate Income Tax. 
6  See paragraph 3 of the draft law introducing Article 121(c)(3) final line of the Law on cr edit institutions . 
7  See, for example, recital 68 and Article 442 of the Regulation (EU) No 575/2013 of the European Parliament and of the 
Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending 
Regulat ion (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).  
8  See paragraph 3 of the draft law introducing Article 121(c) (3) final line of the Law on credit institutions.  
9  See Opinion CON/2014/39, paragraph 3.3.  
10  See paragraph 2 of the draft law amending Artic le 103 of the Law on credit institutions.  
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3 including the delegation of some of the conservator’s powers to third parties11. Whether BNB 
decides to exercise this right or not depends on its discretion.  
3.1.2 On the proposed mandatory requirement for the assignee in bankruptcy to enter into an agreement 
with a company that  has experience in tracking money transfers and receivables as well as 
transactions with financial instruments, the ECB rec ommends that the assignee be granted 
discretion to decide in each individual case whether such an agreement is necessary.  
3.2 Public disclosure and information requirements concerning beneficial  owners of companies  
3.2.1 The ECB welcomes the requirement to ascertain the identity of the beneficial  owners of companies 
registered in a jurisdiction with a preferential tax regime before any payouts of deposits are made. 
In this  regard, the ECB notes that the information on the identity of the beneficial owners  of 
companies should be readily available as part of banks’ compliance with customer due diligence 
requirements12. The importance of enhancing transparency on beneficial ownership and adequate 
customer due diligence has been further emphasi sed in recent legislative proposals at Union 
level13. 
3.2.2 The publication of the names of the beneficial  owners of companies registered in a jurisdiction with 
a preferential tax regime with loans that have not been serviced or are overdue at banks in 
resolution (or where the bank’s licence has been revoked) should be subject to appropriate 
safeguards  as set out in paragraph 2.2 above. With respect to loans that have not been serviced or 
are overdue, the key concern should be to enhance collection efforts.  
 
This opinion wil l be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 22 December 2014.  
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
 
                                                 
11  See Article 107(3) and (4) of the Law on credit institutions.  
12  Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the 
financial system for the purpose of money laundering and terrorist financing (OJ L 309, 25.11.2005, p. 15).  
13  See, for example, Artic les 11(1)(b) and 12(4) of the proposal for a Directive of the European Parliament and of the Council 
on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing  
(COM(2013)  45 final) .