Money Laundering Detection Methods in Poland: Understanding Obligations and Penalties
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Poland’s anti-money laundering (AML) system relies on obligated institutions acting as filters to identify and report suspicious transactions. These entities, including banks, credit institutions, investment firms, and more, are required to implement a series of obligations to prevent financial crime.
Who is Subject to AML Obligations in Poland?
The AML Act applies to explicitly specified entities, known as obligated institutions. This group includes:
- Entrepreneurs providing services such as registered offices, business addresses, or mailing addresses to legal persons or organizational units without legal personality
- Accounting bookkeeping services providers
Obligations Related to Internal Documentation in Poland
Each obligated institution must prepare a risk assessment related to money laundering and terrorist financing, which determines further actions taken by the institution. The risk assessment should include factors such as:
- Customer countries
- Products
- Transactions
This document should be updated at least every two years and adapted to the institution’s actual business profile.
Internal AML Procedure in Poland
After identifying potential threats, obligated institutions must prepare an internal procedure for anti-money laundering and counter-terrorist financing. This procedure should take into account:
- The institution’s activities
- Risk assessment
- Measures to mitigate identified risks
Obligations Related to Customer Verification in Poland
Obligated institutions must exercise due diligence when establishing business relationships with customers by implementing financial security measures commensurate with identified risk. This includes:
- Verifying customers’ identities before establishing a relationship
- Verifying beneficial owners of legal entities or trusts
Obligations Regarding AML and Employees in Poland
Obligated institutions must provide employees performing anti-money laundering duties with training on data protection issues and enable them to report violations anonymously.
Reporting Violations in Poland
In specific situations, obligated institutions are required to report potential threats to competent authorities. This includes:
- Discrepancies between customer information and beneficial ownership records
- Cash transactions exceeding EUR 15,000
- Suspected money laundering or terrorist financing activities
Penalties for Non-Compliance with AML Obligations in Poland
Failure to comply with AML obligations can result in administrative penalties such as:
- Publication of the institution’s violation on a government website
- Orders to cease specific actions
- Revocation of concessions or permits
- Fines
Criminal sanctions may also be imposed on individuals acting on behalf of the obligated institution.
Conclusion
Understanding AML obligations is crucial for entrepreneurs in Poland. Obligated institutions must ensure compliance with these regulations to avoid severe penalties.