Financial Institutions in Poland Face Hefty Fines for AML Act Violations
Urgent Call to Action: Ensure Compliance with Anti-Money Laundering Regulations
Warsaw, Poland - The recent surge in fines imposed by the General Inspector for Financial Information and other authorities has sent a strong warning signal to financial institutions in Poland: prioritize anti-money laundering (AML) compliance to avoid severe penalties.
Identifying Risks and Ensuring Compliance
Experts warn that failure to identify, assess, and monitor risks arising from outsourcing arrangements can lead to serious consequences. Obliged institutions must also notify or engage in dialogue with supervisory authorities prior to outsourcing critical functions. Additionally, contracts should include provisions ensuring the protection of confidential information and compliance with legal data protection requirements.
Consequences of Non-Compliance
The AML Act in Poland outlines a range of penalties for non-compliance, including:
- Publication of information on the obliged institution
- Orders to cease certain actions
- Withdrawal of concessions or permits
- Pecuniary fines up to EUR 1,000,000 (or EUR 5,000,000 in some cases)
- Fines for individuals responsible for managing obliged institutions up to PLN 1,000,000
The authorities will consider a range of factors when imposing penalties, including the gravity and duration of the breach, financial capacity, and degree of cooperation with anti-money laundering efforts.
Key Steps to Ensure Compliance
To avoid severe penalties, financial institutions in Poland must take immediate action by:
- Identifying, assessing, and monitoring risks arising from outsourcing arrangements
- Notifying or engaging in dialogue with supervisory authorities prior to outsourcing critical functions
- Including provisions ensuring the protection of confidential information and compliance with legal data protection requirements in contracts
- Ensuring sufficient resources and capacity to control outsourced activities and ensure their compliance with applicable laws and regulations
Decision-Making Entity
The General Inspector for Financial Information, President of the National Bank of Poland, and supervisory authorities are responsible for imposing penalties and ensuring AML compliance.
Conclusion
Financial institutions in Poland must prioritize AML compliance to avoid severe penalties. Obliged institutions should take immediate action to ensure compliance with AML regulations, particularly in relation to reporting beneficial owners and updating such information within 7 days. Failure to do so can result in fines up to PLN 1,000,000.
Key Steps:
- Identify, assess, and monitor risks arising from outsourcing arrangements.
- Notify or engage in dialogue with supervisory authorities prior to outsourcing critical functions.
- Include provisions ensuring the protection of confidential information and compliance with legal data protection requirements in contracts.
- Ensure sufficient resources and capacity to control outsourced activities and ensure their compliance with applicable laws and regulations.