Poland Sees Rise in Financial Crimes: Sanctions Compliance, Money Laundering Top Concerns

Law Enforcement Agencies Focus on Key Areas

Law enforcement agencies in Poland have been prioritizing several key areas, including sanctions compliance, environmental protection matters, money laundering, and bribery-related inquiries. The Office of Competition and Consumer Protection has conducted dawn raids as part of these efforts.

• Bank account blockades due to tax evasion and tax fraud investigations have doubled, with many cases resulting in criminal charges being pressed.
• In-house counsel have played a crucial role in responding to these investigations, providing explanations or depositions to authorities and liaising with law enforcement agencies.

Cybersecurity Incidents Add to Challenges

Cybersecurity incidents, data leaks, and frauds have required reporting and internal investigations, further straining resources. This has added complexity to the already challenging environment for in-house legal teams.

Changes to Criminal Law Tighten Penalties

In 2023, significant changes were introduced to Poland’s criminal law, tightening penalties for white-collar crimes and increasing exposure to imprisonment and fines. A new offense, obstructing private tenders, was created, which includes various types of collusion and presents a challenge for in-house legal teams to update procurement procedures and train employees.

• The new offense creates a risk of criminal investigations being opened following notice of regulatory investigations.
• Shareholders have gained the right to report situations where management actions put the company at risk of financial loss, allowing them to request prosecution by the prosecutor’s office.

Whistleblower Reports on the Rise

The EU Whistleblowing Directive is expected to be implemented soon, leading to an increase in internal reports being made by employees. This will likely result in follow-up actions by authorities and pose challenges for internal compliance and legal departments.

• Protecting whistleblower identities and dealing with fake or unfounded reports will be a major challenge.
• The Polish Financial Supervision Authority (PFSA) is expected to initiate more investigations in 2024, focusing on market abuse, manipulation, and insider trading.

Investigations into State-Owned Entities Imminent

With the impending change of government in Poland, extensive investigations concerning state-owned entities are imminent. This includes public-private partnerships and transactions involving government-controlled companies.

• Many large investments, charities, sponsorships, and failed endeavors may be subject to criminal investigation.
• The EU Whistleblowing Directive is expected to lead to an increase in internal reports being made by employees, which will likely result in follow-up actions by authorities.