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Financial Crime Prevention Best Practices in Poland: Trends and Developments

In recent years, Poland has seen an increased focus on financial crime prevention, with law enforcement agencies cracking down on various types of financial crimes. This trend is expected to continue in 2024, making it essential for companies operating in Poland to understand the current landscape and stay ahead of the regulatory changes.

Increased Scrutiny on Bank Account Blockades

The number of bank account blockades due to tax evasion and tax fraud investigations has doubled in Poland. This trend is expected to continue in 2024, highlighting the importance of robust anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

The Polish Financial Supervision Authority (PFSA) will likely initiate more investigations in 2024, focusing on AML and CFT compliance.
Companies operating in Poland should ensure that they have adequate controls in place to prevent money laundering and terrorist financing.

Dawn Raids on the Rise

Dawn raids were conducted primarily by the Office of Competition and Consumer Protection, with assistance from police forces. In-house legal teams have been involved in responding to cybersecurity incidents, data leaks, and frauds, requiring reporting and liaison with law enforcement agencies after conducting internal investigations.

Companies operating in Poland should ensure that they have adequate procedures in place for dealing with dawn raids and other regulatory actions.
In-house legal teams should be prepared to respond quickly and effectively to any regulatory inquiries or investigations.

Significant Law Reforms Impacting Corporate Criminal Liability

In 2023, Poland introduced significant amendments to the criminal law, tightening penalties for white-collar crimes. A new type of offense, obstructing private tenders, was introduced, including various types of collusion.

The new laws will create an enormous challenge for in-house legal teams, which need to update procurement procedures and provide training within their organizations.
Companies operating in Poland should ensure that they have adequate compliance procedures in place to prevent corporate criminal liability.

Shareholders Gain New Rights

Shareholders have 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. This is expected to lead to more reports being made following notice of regulatory investigations.

Companies operating in Poland should ensure that they have adequate procedures in place for dealing with shareholder complaints and requests for investigation.
In-house legal teams should be prepared to respond quickly and effectively to any shareholder inquiries or complaints.

Internal Investigations: Key Developments

Challenges from previous years remain unchanged, including data/privacy protection during an investigation, issues regarding who should commission an internal investigation (often management may have a conflict of interest), and how to protect whistleblowers. The EU Whistleblowing Directive is expected to be implemented in Poland, leading to more reports being made internally or externally by employees.

Companies operating in Poland should ensure that they have adequate procedures in place for dealing with internal investigations.
In-house legal teams should be prepared to respond quickly and effectively to any internal investigation or whistleblower complaint.

Sectors Targeted by Law Reforms or Criminal Enforcement Action

Many investigations were opened in Poland due to alleged illegal advertising of alcoholic beverages, affecting producers, advertising agencies, and retained influencers. Financial brokers, online betting and gambling services have also been frequently targeted, with the main subject of inquiries being money laundering compliance, licenses, and reporting.

Companies operating in these sectors should ensure that they have adequate procedures in place for complying with relevant regulations.
In-house legal teams should be prepared to respond quickly and effectively to any regulatory inquiry or investigation.

Predictions for 2024

The Polish 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 in Poland may lead to extensive investigations concerning state-owned entities, affecting public-private partnerships and transactions/projects involving companies controlled by the government and their counterparties.

Companies operating in Poland should ensure that they have adequate procedures in place for dealing with regulatory inquiries and investigations.
In-house legal teams should be prepared to respond quickly and effectively to any regulatory inquiry or investigation.

On the Horizon

The EU Whistleblowing Directive is expected to be implemented in Poland, leading to more reports being made internally or externally by employees. In-house legal teams will need to protect the identity of whistleblowers and deal with fake or unfounded reports, which will be a significant challenge for internal compliance and legal departments.

Companies operating in Poland should ensure that they have adequate procedures in place for dealing with whistleblower complaints.
In-house legal teams should be prepared to respond quickly and effectively to any whistleblower complaint.