Poland Struggles to Meet EU’s Antimoney Laundering Demands
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The European Union’s Fifth Anti-Money Laundering Directive (AMLD5) has introduced a series of new obligations for financial institutions and other entities in Poland, which must adapt to the changes by June 2021. The Polish government has amended its laws to comply with AMLD4 and AMLD5, expanding the scope of obliged entities, introducing new requirements for due diligence, and enhancing customer risk assessments.
New Obligations for Financial Institutions
- A broader definition of beneficial ownership, which now includes:
- European partnerships
- Cooperatives
- European companies
- Associations registered in the National Court Register
- Foundations
- Trusts with ties to Poland
- Entities providing services to companies and trusts, as well as those dealing with virtual currencies, must now register with the relevant authorities
Enhanced Due Diligence Requirements
- Obligated institutions, including:
- Tax consultants
- Real estate brokers
- Art traders
- Storage providers
- Must conduct enhanced due diligence on high-risk customers and transactions
Regulatory Oversight and Support
- The Polish Financial Supervision Authority (PFSA) has been granted more powers to monitor compliance
- The Ministry of Finance has issued a list of recognized politically exposed positions
- Poland is offering:
- Training programs on AML/CFT best practices
- Legal advice on implementing the changes
- Support in conducting gap analyses and developing roadmaps for implementation
- Guidance on customer risk assessments and post-implementation audits
Compliance Deadline
The compliance deadline of June 2021 provides a six-month window for obligated institutions to adapt to the new requirements. As Poland navigates this complex regulatory landscape, it remains to be seen how effectively these institutions will implement the changes and mitigate the risks associated with money laundering and terrorist financing.