Financial Crime World

Financial Crime Examples Abound in Poland Despite Robust Economy

Poland’s economy has flourished, earning it the eighth-largest spot within the European Union. However, despite this success, the country remains vulnerable to financial crime. Official data reveals that organized crime and customs tax evasion are the primary sources of illicit funds in Poland.

Money Laundering through Virtual Currencies

Virtual currencies such as Bitcoin have emerged as significant tools for money laundering in Poland. Profits generated by organized criminal entities through tax evasion and the sale of counterfeit goods are increasingly being funneled out of the country.

Key Hub for Organized Crime Activities

A key hub for organized crime activities is the China Trade Center in Wolka Kosowska, just outside Warsaw. Criminals use a modus operandi involving undervaluing imported goods through falsified invoices to manipulate customs valuations and applicable value-added tax (VAT). Additionally, authorities have raised suspicions regarding counterfeit goods and illegal drug trafficking within these markets.

Regulatory Framework

To combat this threat, Poland has put in place a robust regulatory framework. Several key bodies provide oversight, including:

  • General Inspector of Financial Information
  • Minister responsible for public finance
  • Polish Financial Supervision Authority
  • National Bank of Poland
  • Supreme Chamber of Control

Relevant regulations include:

  • AML Act
  • Act on Countering Money Laundering and Financing of Terrorism
  • Criminal Fiscal Code
  • Banking Act

Compliance Requirements

To comply with these regulations, entities in Poland must establish internal anti-money laundering (AML) programs. This includes:

  • Implementing financial security measures for customers
  • Conducting thorough Know Your Customer procedures
  • Maintaining records of customer recognition procedures

In cases of doubt, obliged institutions are required to prepare and submit Suspicious Activity Reports to the Inspector General of Financial Information. Designated senior management officials must oversee AML obligations and provide training programs for relevant personnel.

Assessment by FATF

Despite some areas for improvement, Poland is not currently listed among countries with significant deficiencies in their AML efforts by the Financial Action Task Force (FATF). According to the most recent assessment, Poland complies fully with two of the FATF’s 40 Recommendations and has substantial compliance with 21 others.

Effective Anti-Money Laundering Solutions

Sanction Scanner offers effective anti-money laundering solutions for Polish companies. Our cutting-edge technology streamlines AML compliance processes. For more information, visit our website or contact us for a demonstration.