Financial Crime World

Anti-Money Laundering Regulations in Poland

Administrative Penalties

In Poland, anti-money laundering (AML) regulations are enforced through the AML Act, which imposes administrative penalties for non-compliance. The following authorities have the power to impose these penalties:

  • General Inspector for Financial Information
  • President of the National Bank of Poland
  • Polish Financial Supervision Authority

The severity of the penalty depends on various factors, including:

  • Gravity and duration of breach: The more severe and prolonged the breach, the higher the penalty.
  • Financial capacity of obligated institution: Institutions with greater financial resources may face higher penalties.
  • Profits gained or losses incurred: If an institution has profited from a breach or incurred significant losses, they may face harsher penalties.
  • Degree of cooperation with authorities: Institutions that cooperate fully with investigations may receive more lenient penalties.
  • Previous breaches: Repeat offenders may face increased penalties.

Types of Administrative Penalties

The following are the possible types of administrative penalties for non-compliance with AML regulations in Poland:

  • Publication of information on obligated institution’s violation (loss of reputation): The authorities may publicly disclose the name and details of the breach.
  • Order to stop certain actions: Institutions may be prohibited from engaging in specific activities until they comply with the law.
  • Withdrawal of concession or permit or striking off register of regulated activities: In severe cases, institutions may have their licenses revoked or be removed from the register of regulated entities.
  • Prohibition from performing managerial duties for up to one year: Key individuals involved in a breach may be barred from holding management positions.
  • Pecuniary penalty (up to PLN 1,000,000 for natural persons and up to EUR 5,000,000 for legal persons): Institutions or individuals may face significant fines.

Exemptions

In certain circumstances, the authorities may choose not to impose a penalty if:

  • The breach is negligible: Minor infractions may be overlooked.
  • Another authority has already imposed a penalty: If another regulatory body has taken action, additional penalties may not be necessary.

Particular Attention

The AML regulations in Poland place particular emphasis on the following areas:

  • Obligation of commercial companies to report information on beneficial owners and update such information within 7 days: Companies must disclose accurate and up-to-date information about their beneficial owners.
  • Financial penalty for non-compliance up to PLN 1,000,000: Failure to comply with this requirement may result in significant fines.

Additional Provisions

In addition to the above penalties, individuals and entities that fail to comply with AML regulations may face additional consequences:

  • Beneficial owner who fails to provide necessary information or documents is subject to a fine of up to PLN 50,000: Beneficial owners have a responsibility to cooperate fully.
  • Entities conducting activities without proper entry in the register are subject to a pecuniary penalty of up to PLN 100,000: Entities that operate outside the law may face significant fines.

Overall, the AML regulations in Poland aim to prevent and detect money laundering and terrorist financing by imposing significant administrative penalties on non-compliant institutions and individuals.