Poland Tightens Internal Controls to Prevent Financial Crimes

Strengthening Stance Against White-Collar Offenses

Warsaw, Poland - In a bid to enhance its stance against financial crimes, the Polish government has introduced significant amendments to the country’s criminal law. These changes aim to strengthen penalties for white-collar offenses and grant shareholders more rights to report suspicious activities.

Key Focus Areas:

• Sanctions Compliance: Law enforcement agencies in Poland have increased their efforts to combat financial crimes related to sanctions compliance.
• Environmental Protection: Matters involving environmental protection are also being prioritized, with a focus on preventing financial crimes within this sector.
• Money Laundering and Bribery: In-house counsel have been involved in providing explanations or depositions to the authorities in cases related to money laundering and bribery.

Dawn Raids and Internal Investigations on the Rise

The Office of Competition and Consumer Protection has conducted dawn raids, primarily with police assistance. In-house legal teams have frequently been involved in responding to cybersecurity incidents, data leaks, and frauds. These cases often require reporting and liaising with law enforcement agencies after conducting internal investigations.

New Offenses and Shareholder Rights

The amended criminal law introduces a new type of offense: obstructing private tenders. This includes various types of collusion, such as conducting a pro-forma tender that compromises transparency or fairness may now lead to criminal liability. Shareholders have also gained the right to report situations where management action has put the company at risk of financial loss and request prosecution by the prosecutor’s office.

Challenges in Internal Investigations Remain

Data protection, issues regarding who should commission an internal investigation, and protecting whistleblowers remain key challenges for in-house legal teams. The EU Whistleblowing Directive is expected to be implemented soon, which may lead to more reports being made internally or externally by employees.

Predictions for 2024

More investigations are expected to be initiated by the Polish Financial Supervision Authority (PFSA), focusing on market abuse, manipulation, and insider trading. Extensive investigations concerning state-owned entities are also imminent due to the impending change of government in Poland.