Poland Steps Up Enforcement of Financial Crimes

In 2023, Poland witnessed a significant surge in law enforcement activities focused on financial crimes, with a particular emphasis on sanctions compliance, environmental protection, money laundering, and bribery-related inquiries.

Increased Law Enforcement Activities

The Office of Competition and Consumer Protection led the way in conducting dawn raids, often assisted by police. In-house counsel played a crucial role in responding to these investigations, providing explanations and depositions to authorities.

Dawn Raids: The Office of Competition and Consumer Protection conducted numerous dawn raids, with police assistance.
In-House Counsel Response: In-house counsel provided critical support during investigations, offering explanations and depositions to authorities.

Tax Evasion and Fraud Investigations

Tax evasion and tax fraud investigations saw a notable rise, with bank account blockades more than doubling. These cases frequently resulted in criminal charges being pressed against individuals and companies.

Rise in Tax Evasion and Fraud Cases: Tax evasion and tax fraud investigations increased significantly in 2023.
Bank Account Blockades: Bank account blockades more than doubled, leading to criminal charges against individuals and companies.

New Offenses and Tightened Penalties

The Polish government introduced significant amendments to the country’s criminal law in 2023, tightening penalties for white-collar crimes and introducing new offenses such as obstructing private tenders.

New Offenses: The Polish government introduced new offenses, including obstruction of private tenders.
Tightened Penalties: Penalties for white-collar crimes were tightened, creating a more severe regulatory environment.

Shareholders Gain New Rights

Shareholders in Polish companies gained a new right to report situations where management action has put the company at risk of financial loss, and request prosecution by the prosecutor’s office. This may be triggered by mere exposure to a financial penalty exceeding circa EUR45,000.

New Right for Shareholders: Shareholders now have the right to report situations that could put the company at financial risk.
Triggering Financial Penalties: A financial penalty exceeding EUR45,000 can trigger this new right.

Internal Investigations Remain Challenging

Despite efforts to update regulations, internal investigations in Poland continue to face challenges related to data protection, conflicts of interest, and whistleblower protection.

Challenges in Internal Investigations: Data protection, conflicts of interest, and whistleblower protection remain significant challenges.
Need for Updates: Regulatory updates are necessary to address these ongoing challenges.

Sectors Under Fire

Many investigations were opened in 2023 targeting alleged illegal advertising of alcoholic beverages, producers, advertising agencies, and influencers. Financial brokers, online betting and gambling services also faced intense scrutiny for money laundering compliance, licenses, and reporting.

Investigations in Various Sectors: Investigations targeted various sectors, including alcohol advertising, financial brokers, and online betting.
Scrutiny on Money Laundering Compliance: Intense scrutiny was applied to money laundering compliance, licenses, and reporting.

Predictions for 2024

Poland’s Financial Supervision Authority (PFSA) is expected to initiate more investigations in 2024, focusing on market abuse, manipulation, and insider trading. The impending change of government may lead to extensive investigations into state-owned entities and public-private partnerships.

Predicted Investigations: PFSA is predicted to focus on market abuse, manipulation, and insider trading.
Potential Impact of Government Change: A change in government may lead to investigations into state-owned entities and public-private partnerships.