AML Compliance Officers’ Role in Polish Obligated Institutions

In Poland, the Anti-Money Laundering (AML) Act imposes significant responsibilities on obliged institutions to prevent money laundering and terrorist financing. One critical role is that of the AML Compliance Officer (AMLO), also known as the Money Laundering Reporting Officer (MLRO). This article highlights the importance of appointing an AMLO, their duties, and the consequences of non-compliance.

Appointment of an AMLO: Mandatory Under Polish Law

The AML Act requires obliged institutions to appoint an AMLO to ensure compliance with AML regulations. Failure to do so can result in administrative penalties, including publication of information on the institution’s website, orders to stop certain actions, and fines.

Duties of an AMLO

The AMLO is responsible for implementing AML procedures within the obliged institution. Their duties include:

• Identifying and reporting suspicious transactions
• Conducting ongoing monitoring of economic relations with customers
• Implementing measures to prevent money laundering and terrorist financing

Criminal Liability of an AMLO

An AMLO who fails to notify the General Inspectorate on circumstances that may indicate a suspicion of money laundering or terrorist financing can be liable for fines up to PLN 1,000,000 (administrative liability) or imprisonment from three months to five years.

AML Procedures for Politically Exposed Persons (PEPs)

Obligated institutions must apply additional measures when dealing with PEPs, including:

• Verifying clients’ and beneficial owners’ status as PEPs
• Obtaining senior management approval to enter into business relationships with PEPs
• Determining the source of clients’ assets
• Intensifying ongoing monitoring of economic relations

Conclusion

The appointment of an AMLO is mandatory under Polish law, and their duties are critical in preventing money laundering and terrorist financing. Obligated institutions must ensure that they have a robust AML system in place, including procedures for dealing with PEPs. Failure to comply can result in severe consequences, including administrative penalties and criminal liability.

Recommendation

To avoid non-compliance, obliged institutions should:

• Appoint an AMLO with adequate training and expertise
• Implement a comprehensive AML procedure that includes measures for identifying and reporting suspicious transactions
• Verify the status of clients and beneficial owners as PEPs
• Obtain senior management approval to enter into business relationships with PEPs

By following these guidelines, obliged institutions can ensure compliance with Polish AML regulations and protect themselves from potential legal consequences.