Financial Crime World

Minister of Finance Orders Clampdown on Politically Exposed Persons

The Minister of Public Finance has issued a stern warning to institutions under his purview, ordering them to take immediate action against individuals found to be in violation of anti-money laundering and combating the financing of terrorism (AML/CFT) laws.

New Measures to Combat Money Laundering and Terrorist Financing

Under the new measures, institutions will be prohibited from engaging with individuals who have been deemed Politically Exposed Persons (PEPs). PEPs are defined as natural persons holding significant public positions or performing high-level public functions. The list of PEPs is publicly available and includes those in positions such as government ministers, senior officials, and members of parliament.

  • Institutions found to be in violation of AML/CFT laws will face severe penalties, including fines and the withdrawal of concessions or permits.
  • Individuals responsible for violating the law may be prohibited from holding managerial positions for up to one year.

The measures are designed to strengthen Poland’s efforts to combat money laundering and terrorist financing, and come into force immediately.

Verification of Beneficial Owners

Institutions under the Minister of Public Finance’s purview have been ordered to identify and verify the beneficial owners of their clients. This includes individuals who hold a direct or indirect stake in a company, trust, or other legal entity.

  • The verification process will involve collecting information on the beneficial owner, including:
    • Name
    • Nationality
    • Address
    • Any discrepancies between the information collected and that held by the Central Register of Beneficial Owners (CRBR)
  • Institutions will also be required to take steps to establish the structure of ownership and control, and identify any discrepancies between the information collected and that established about the customer’s beneficial owner.

Additional Obligations

In addition to the above measures, institutions will be required to apply enhanced due diligence procedures when dealing with PEPs or their family members. This includes:

  • Intensified monitoring of economic relations
  • Additional scrutiny of transactions and source of funds

The Minister of Public Finance has emphasized the importance of these measures in protecting Poland’s financial system from money laundering and terrorist financing threats.

“We will not tolerate any violations of our AML/CFT laws,” said the Minister. “These measures are designed to ensure that our institutions are taking all necessary steps to prevent money laundering and terrorist financing, and we will take swift action against those who fail to comply.”