Poland’s Financial Regulatory Framework: Key Requirements and Obligations

In an effort to maintain financial stability and combat money laundering and terrorist financing, Poland’s financial regulatory framework has implemented various measures aimed at protecting depositors, maintaining bank secrecy, and applying restrictive measures to sanctioned entities. In this article, we will delve into the key requirements and obligations of banks operating in Poland.

Suspect Transactions and Sanctioned Entities

Banks are required to suspend suspicious transactions and block accounts suspected of being linked to money laundering or terrorist financing. Additionally, they must apply specific restrictive measures to sanctioned entities included in the relevant lists of sanctioned parties. This includes:

• Identifying and freezing assets belonging to such entities
• Reporting any suspicious transactions to the competent authorities

Customer Due Diligence Measures

Banks are obligated to apply customer due diligence measures when establishing a business relationship or carrying out occasional transactions. These measures include:

• Identifying and verifying the customer’s identity
• Identifying and taking reasonable measures to verify the beneficial owner
• Assessing and, as appropriate, obtaining information on the business relationship’s purpose and intended nature
• Conducting ongoing monitoring of the business relationship

Depositor Protection

Poland has a mandatory depositor protection scheme administered by the Bank Guarantee Fund (BGF). The scheme covers funds in any currency accumulated by depositors in bank accounts, as well as other receivables arising from selected banking activities. The guarantee does not extend to electronic money or funds received in exchange for electronic money.

Bank Secrecy

Banks are required to maintain bank secrecy, which extends to all information concerning a banking activity. This obligation does not apply in cases where disclosure is necessary for the proper performance of anti-money laundering and counter-terrorist financing obligations. Banks may disclose information subject to bank secrecy exclusively to selected entities, such as other banks, credit institutions, or financial institutions.

Prudential Regime

The prudential regime in Poland requires banks to maintain a minimum initial capital of PLN equivalent to EUR5 million. The PFSA also sets out capital, liquidity, and related risk control requirements, which are based on the Basel III standards. Banks must also adhere to CRR/CRD package regulations.

Conclusion

Poland’s financial regulatory framework is designed to ensure the stability and integrity of the financial system while protecting depositors and combating money laundering and terrorist financing. By understanding these key requirements and obligations, banks operating in Poland can better navigate their responsibilities and maintain compliance with relevant regulations.