Financial Crime World

Poland’s Financial Market Regulator Takes Center Stage in Banking Industry Compliance Push

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The Polish Financial Supervision Authority (PFSA) has been granted significant powers to oversee the country’s financial markets, including banking, insurance, pensions, capital, cooperative banks, and payment services. The regulator is tasked with ensuring the stability, security, transparency, and trust in the financial system by providing reliable information and protecting participants’ interests.

Key Responsibilities

The PFSA exercises its licensing, regulatory, control, and disciplinary functions to regulate the activities of various financial institutions. Some of its key responsibilities include:

  • Issuing licenses for:
    • Banks
    • Cooperative banks
    • Domestic payment institutions
    • Insurance and reinsurance undertakings
    • Open pension funds
    • Investment funds or investment companies
  • Conducting ongoing analysis of reports submitted by financial institutions to assess compliance with legally defined capital requirements
  • Carrying out control procedures in supervised entities to ensure they are operating in accordance with regulatory requirements
  • Imposing financial penalties and withdrawing licenses from non-compliant entities

Supervisory Measures

The PFSA takes supervisory measures ex officio, without being prompted by customers or other market participants. These measures include:

  • Issuing individual recommendations for specific entities or guidelines affecting entire financial sectors
  • Conducting ongoing analysis of reports submitted by financial institutions to assess compliance with legally defined capital requirements
  • Carrying out control procedures in supervised entities to ensure they are operating in accordance with regulatory requirements

Sources of Information

The PFSA relies on various sources of information to carry out its supervisory activities, including:

  • Reports submitted by financial institutions
  • Market practice analysis
  • Customer complaints and concerns
  • Publicly available data and statistics

Conclusion

In conclusion, the Polish Financial Supervision Authority plays a crucial role in ensuring the stability, security, transparency, and trust in Poland’s banking industry. With its sweeping powers and range of supervisory measures, the PFSA is well-equipped to address violations of existing legal regulations and protect participants’ interests.