Financial Crime World

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ML Officers’ Obligations: Heavy Fines Loom Large

A recent development in Poland’s Anti-Money Laundering (AML) law has highlighted the importance of ML officers’ obligations. According to Articles 147 and 148 of the Polish AML Law, ML officers are liable to severe penalties for failure to comply with their duties.

Failure to Notify: Up to PLN 1 Million Fine

  • Under Article 147, ML officers are required to notify the General Inspector on circumstances that may indicate a suspicion of money laundering or terrorist financing.
  • Failure to do so can result in a fine of up to PLN 1 million (approximately EUR 250,000).

Providing False Information: Up to 5 Years Imprisonment

  • Article 148 imposes stricter penalties for ML officers who provide false or concealed data on transactions, accounts, or persons.
  • In cases where the act is intentional, imprisonment can range from 3 months to 5 years.

PEP Obligations: Enhanced Due Diligence

  • The Polish AML Law also requires ML officers to apply enhanced due diligence measures when dealing with Politically Exposed Persons (PEPs) and their close associates.
  • This includes verifying the identity of PEPs, family members, and individuals known to be close associates.

UBO Verification: Identifying Beneficial Owners

  • As part of the AML law’s amendment in 2021, ML officers are now required to identify and verify the beneficial owners (UBOs) of their clients.
  • This involves taking steps to establish the structure of ownership and control, identifying discrepancies between the Central Register of Beneficial Owners and established information about a customer’s UBO, and taking actions to clarify the reasons for such discrepancies.

Consequences of Non-Compliance

  • Non-compliance with ML officers’ obligations can result in severe financial penalties, including fines and imprisonment.
  • It is essential for ML officers to understand their duties and ensure that they are compliant with the Polish AML law to avoid such consequences.

Conclusion

In conclusion, ML officers in Poland must be aware of their obligations under the AML law and take necessary steps to prevent money laundering and terrorist financing. Failure to do so can have serious consequences, including heavy fines and imprisonment.